“If you are interested in picking up a new hobby like boating, you’ll do everything you can to learn more and more and more. Why can’t you do that with your auto repair shop?
Is it because it’s boring?
Is it because it’s not the same?
It doesn’t excite you as much as your hobby would?
If you take a second and stop to think, you’ll realize you can have any hobby in the world if you focus on your repair shop and get it to where it needs to be.
There is no waiting for the right person to walk through the door. There is no waiting for the right technician."
"It has to happen right now, today."
Tekmetric Co-CEO and Co-Founder Sunil Patel recently joined Kelsey Outram on the LIFT Your Shop Podcast to talk tech, mentorship, and transforming your auto repair business.
From medical school to law enforcement, Sunil tried his hand at a variety of fields over the years, but eventually all roads led him to founding Tekmetric with Prasanth Chilukuri in 2016.
Tekmetric quickly became the preferred shop management system in the auto repair industry.
And if you ask Sunil why, he’ll say it’s all about mindset.
If you’re a shop owner who has been feeling stuck, here are six steps you can take to shift gears.
1. Define Your Goals
“When you really set your mind to something, it subconsciously changes how you behave as a human, as a person. And you hone in on what you’re trying to accomplish and you accomplish that task.”
Here are some examples of goals you might hear people talk about in the auto repair industry:
“I want to make one million dollars in revenue this year."
“I would like to add another bay to the shop by the end of the year."
“I want to open another location in 2023.”
What do these goals all have in common? They are specific, achievable, and easy to track.
In the same way that it’s difficult to plan a vacation without having a travel destination in mind, it’s difficult to achieve a goal if you never set one in the first place.
Knowing where you want to go is the first step toward figuring out a roadmap to get there.
2. Accept That Change is Part of the Process
“Forget about the technology and software and all that for a moment, and ask yourself this: Are you happy with where you are today running your shop? And if the answer is no, then dig deeper.”
Whether your shop is looking to switch parts suppliers or invest in a new shop management system, change can be intimidating.
Many shops experience growing pains, but keeping an open mind is essential to driving your business forward.
3. Be Willing to Ask for Help
“We are just the shop management system or the tool that a repair shop uses to process the information in the repair shop. But success has to do with more than a tool. You have to have a breakthrough."
"You have to realize that there is something happening in my repair shop that I need help fixing. You have to be willing to ask for help…Really observe and listen to all the voices saying there’s a better way to run an auto repair shop.”
Tradeshows and conferences offer great networking opportunities, but you may not always be able to attend.
If you’re looking to connect with other repair shop owners and build relationships within the industry, Sunil recommends joining Facebook groups and listening to automotive industry podcasts.
4. Connect With a Mentor
“A lot goes into running an auto repair shop. It’s not just about knowing the fundamentals of running a business, but it’s the way people interact, the way you propagate information, the way you receive information, and what you do with that information. It’s the way organization or structure is designed.
There’s a lot of little nuances in dealing with people that you’re not going to get just by trial and error…I think having a mentor is really important for anything you do in life. I’m getting coaching today in running Tekmetric."
Mentors are human and chances are they’ve made some mistakes. A good mentor will ensure you don’t make the same mistakes they did.
Tek Tip: Looking for a book recommendation? Sunil recommends “The Five Dysfunctions of a Team” by Patrick Lencioni.
5. Be a Team Player
“There’s a lot of trust that goes into running a team. At Tekmetric, we don’t want to lose sight of those team dynamics as we grow and develop as a company. More than anything, we want to make sure everyone is operating with a common goal and everybody’s in sync…If even one team or one area falls out, then the whole machine breaks apart.
The goal is to try and get this machine to spin at a faster rate, slowly and incrementally by making small adjustments. We want to elevate everybody while achieving our goals together."
Tekmetric recently accepted a Silver Stevie Award® at The 20th Annual American Business Awards® for Achievement in Growth. We’ve grown tremendously over the past year, and although we consistently release new features and integrations (like our first-of-its-kind OEC RepairLink integration, our team player mindset has always stayed the same.
Tek Tip: Make sure your partners are team players, too.
6. Leverage Technology
“We have a new generation of car drivers on the road that don’t want to come in and speak to somebody or pick up a phone call. They want the convenience of technology on their cell phone to look and see what’s wrong with their vehicle, approve and decline jobs, pay for the repair, and then just come and collect the vehicle.”
Shops that leverage technology have more scalability. Tekmetric offers auto repair shops a frictionless shop management experience with improved efficiency and workflow.
Having the freedom to step away from the shop and trust that everything is under control empowers shop owners to focus less on micromanaging and more on leadership. Tekmetric puts you in the driver’s seat.
In the words of Sunil:
"You have to be intentional and ready to make the change. Trust in the process. If you focus on mindset first, the business practices and success will eventually follow.”
Every vehicle that rolls into your shop is an opportunity to protect a customer's family, uncover real problems before they become roadside emergencies, and build the kind of trust that earns repeat business—but only if your team catches what matters every time.
A consistent inspection process is how shops do that. And when you pair it with the right tools, it pays off: Tekmetric shops using Digital Vehicle Inspections (DVIs) average $741 per repair order, compared to $612 without them.
Below, you'll find a downloadable 100-point vehicle inspection checklist, a breakdown of what every technician should check, and an overview of how digital vehicle inspections can sharpen your workflow.
A full inspection covers every system that affects safety, drivability, and reliability. The comprehensive 100-point checklist below gives your technicians a strong baseline they can follow on every repair order.
Vehicle intake
Log the VIN and license plate to confirm the vehicle's identity and match past service records.
Record odometer reading in and out.
Note customer-reported concerns and the reason for the visit.
Document the fuel level at drop-off.
Check for open safety recalls tied to the VIN.
Gather customer contact information.
Exterior condition
Check the body for dents, scratches, and any signs of damage.
Inspect the bumpers front and rear for cracks, loose mounts, or impact marks.
Confirm the license plate is secure, legible, and properly mounted.
Note any rust, paint issues, or trim damage.
Inspect fenders, rocker panels, and body panel alignment.
Inspect glass, windshield, and mirrors for chips, cracks, or pitting.
Check door handles, hinges, and weather stripping.
Inspect child safety locks.
Inspect the trailer hitch.
Lights and electrical
Headlights on low and high beam.
Taillights and brake lights.
Turn signals front and rear.
Hazard flashers.
License plate lights and dashboard illumination.
Reverse lights, fog lights, and daytime running lights.
Interior dome, map, and courtesy lights.
Any warning light that's illuminated on the dashboard. A check engine light, ABS warning, or airbag indicator tells you where to focus diagnostic time.
Battery voltage, terminals, and charge/discharge load test.
Alternator output and starter draw.
Ignition switch and accelerator pedal function.
Horn operation.
Tires and wheels
Check tire pressure on all four tires plus the spare.
Measure tire tread depth.
Check for uneven wear patterns that can point to alignment or suspension issues.
Inspect sidewalls for cracks, bulges, or embedded objects.
Check valve stems and caps for leaks or damage.
Review the tire DOT date code for age.
Verify wheel condition, lug nut torque, and hub cap security.
Check the spare tire, jack, lug wrench, and locking wheel lock key.
Confirm the tire pressure monitoring system (TPMS) is functioning.
Brake system
Check brake pads for thickness and wear patterns.
Inspect rotors for scoring, warping, or excessive wear.
Examine brake drums and shoes, if equipped.
Check brake calipers for sticking, leaks, or damaged boots.
Check brake fluid level and condition at the master cylinder.
Examine brake lines and hoses for cracks or leaks.
Test parking brake function and adjustment.
Evaluate overall brake pedal feel, travel, and pulsation.
Verify ABS sensors, wiring, and warning light operation.
Steering and suspension
Inspect the steering wheel for play and responsiveness.
Check steering column and intermediate shaft for looseness.
Check power steering fluid level and condition.
Examine tie rods and ball joints for wear.
Check struts for leaks or damage.
Inspect shock absorbers for proper dampening and leaks.
Check CV boots and axle shafts.
Inspect wheel bearings for noise or excessive play.
Inspect sway bar links, bushings, and control arms.
Look for uneven ride height or sagging that can indicate a failing spring.
Under the hood
Check the battery capacity.
Check engine oil level and condition.
Check the oil filter for leaks and proper seating.
Inspect transmission fluid.
Check coolant level, condition, and the cooling system for leaks.
Inspect brake fluid, power steering fluid, and washer fluid reservoirs.
Inspect the battery, cables, and hold-down hardware.
Examine the serpentine belt and any drive belts for cracks, glazing, or fraying.
Check all hoses for soft spots, swelling, bulges, or leaks.
Inspect the engine air filter and cabin air filter.
Check the fuel filter, if serviceable.
Inspect the PCV valve and evaporative emissions components.
Check the radiator and condenser fins for debris or damage.
Check engine and transmission mounts.
Look for oil leaks at the valve cover, oil pan, and gaskets.
Test the spark plugs and ignition components.
Inspect air intake.
Inspect fuses.
Under the car
Check the exhaust system for leaks, rust, and damaged hangers.
Inspect the muffler, resonator, and heat shields.
Inspect fuel system components, lines, and the fuel tank for leaks or corrosion.
Look at the transmission and differential housings for leaks.
Check the oil pan and drain plug for seepage or stripped threads.
Examine the frame, subframe, and undercarriage for rust or impact damage.
Check emissions-related components like the catalytic converter and oxygen sensors.
Inspect the driveshaft, U-joints, and center support bearings.
Verify skid plates and underbody shielding are secure.
Scan the ground under the vehicle for any fluid drips or leaks.
Interior and safety equipment
Test seat belts for retraction, fraying, and buckle function.
Confirm airbag and supplemental restraint indicators clear properly.
Inspect windshield wipers and wiper blades for streaking or splitting.
Test washer fluid spray on the windshield and rear glass, if equipped.
Inspect interior warning lights.
Check AC, heat, and all fan speeds.
Test front and rear defrosters.
Inspect infotainment displays and systems.
Test door locks, power windows, and the key fob.
Inspect driver-assist systems, backup camera, and parking sensors.
Inspect lane departure systems.
Road test
Confirm smooth engine start and stable idle.
Evaluate transmission shift quality and clutch engagement, if manual.
Test braking response, pedal feel, and stopping distance.
Listen and feel for suspension noise, vibration, or harshness.
Check cruise control and driver-assist system operation.
Note any dashboard warning indicator, abnormal smoke from the exhaust, or unusual vibration that appears during the drive.
What are digital vehicle inspections (DVIs)?
Paper inspection checklists worked for decades, but they come with real costs: illegible handwriting, lost sheets, no documentation, and frustrating back-and-forth among the technician, service advisor, and customer.
Digital Vehicle Inspections change that. With Tekmetric, your technicians perform the inspection on a tablet or phone, attach photos and videos of anything that needs attention, and send a vehicle health report straight to the customer's phone.
Here's what that looks like in practice: A technician notices worn brake pads on a 2019 Toyota Highlander. Instead of writing a note the customer may not understand, the technician snaps a photo of the worn pad next to a new one, records a short video, and marks the task red for immediate attention. The service advisor builds the estimate and texts it to the customer. Whether they're an in-store customer in the waiting room or at work across town, the customer approves the job with a digital signature.
Tired of piles of paper inspections? Upgrade your shop with digital vehicle inspections. Send inspections to the customer for approval with the visual proof needed to close the deal.
Why car inspections matter
Every car owner is counting on your team to catch what they can't see. A consistent inspection process gives your technicians a repeatable way to do exactly that on every repair order, every time.
Inspections also drive revenue. When you document a vehicle's condition clearly with photos and notes, customers understand exactly what their car needs and why. They approve more of the work they genuinely need when they can see the evidence.
Build customer trust with digital vehicle inspections
A great inspection process isn't about checking boxes. It's about giving every vehicle owner a clear, honest picture of their car's condition so they can make informed decisions about their safety and their budget. When your shop pairs a thorough inspection process with a digital tool like Tekmetric's DVI, you give your team the speed and consistency they need and your customers the transparency they want.
As a shop owner, you aren't just selling a car repair; you are selling expertise, specialized equipment, and peace of mind. If your rates are too low, you’ll struggle to keep the lights on. If they’re too high without the value to back them up, customers may opt for a competitor.
In this guide, we’ll walk through exactly how to find that "sweet spot" for your labor rate so you can build a sustainable, profitable shop.
How much should a mechanic charge per hour?
Mechanic shops should charge a labor rate that is competitive in their area, covers their overhead costs (rent, utilities, employees, etc.), and allows them to maintain a healthy profit margin (40-70%) to run the shop. Whether you are an independent shop or a large dealership, your labor rate and parts markup are your primary vehicles for maintaining profitability.
Key terms to know
Before we dive into the math, we need to understand these concepts.
Loaded labor rate: is the true cost of an employee, including their hourly wage, taxes, benefits, and insurance.
Hourly labor rate pricing: is the "posted" rate—the number your customers see on the repair estimate. It is the flat dollar amount you charge per billable hour.
Flat-Rate pricing: is a system where a specific repair is assigned a predetermined amount of time (e.g., a water pump replacement is "booked" at 3.4 hours). The customer pays for 3.4 hours regardless of whether the auto mechanic finishes in two hours or five.
Effective labor rate (ELR): is the real-world number that matters. It’s calculated by taking your total labor sales and dividing them by the actual hours your technicians worked.
How to set your automotive shop labor rate (step by step)
Setting your rate shouldn't be a guessing game based on what the guy down the street is charging. It should be a data-driven decision. Here is a step-by-step approach to finding your labor rate.
Step 1: Calculate your "loaded" labor cost
First, determine exactly what it costs you to pay an employee. This isn't just their hourly wage. You should include:
Wages and overtime.
Payroll taxes.
Benefits (Health insurance, 401k).
Workers' comp and liability insurance.
Training and certifications.
Any other benefits you provide employees.
Divide this total annual cost by the number of billable hours that the employee produces in a year. This is your "loaded" cost and does not include any profit margin.
Step 2: Account for overhead
Your labor revenue needs to cover more than just the employee. It must also cover the overhead costs of running an auto repair business:
In the automotive industry, labor profit margins vary greatly, but most shops aim for 40-70%. If your loaded cost for a technician is $45 per hour and you want a 65% profit margin, your base mechanic labor rate should be at least $128 per hour.
Step 4: Benchmark against your competition
While your internal numbers should be your primary focus, you shouldn’t ignore the local market. If your labor rate is $128 per hour but every other independent shop in your town is at $100, you need to either justify your value through superior service or find ways to reduce your overhead. Make sure you benchmark against competitors of similar size, services offered, and geographically nearby.
Step 5: Implement a labor matrix
Not every repair order is the same. Many successful shops use a labor guide combined with a labor matrix that slightly increases the rate for more complex jobs or diagnostic work. Shops that perform more specialized repairs or focus on specialty vehicles should heavily consider implementing a labor matrix.
Which factors impact labor rates?
Your rate shouldn't be static. Several external and internal factors will influence how much you can—and should—charge for car repair services.
Location: A higher cost of living in cities like California or New York necessitates higher labor rates compared to rural towns. Your technicians need to earn enough to live nearby.
Shop type: A general auto repair shop usually has lower rates than a specialty Euro shop or a heavy-duty diesel facility. Specialization requires more expensive tools and higher-paid talent.
Certifications: If your team holds advanced ASE certifications or factory training, you provide more value. Customers are often willing to pay more for a repair estimate from a shop they trust to do it right the first time.
Warranty: If you offer a service warranty, you are taking on more risk and can charge more for the peace of mind.
5 Ways Tekmetric can help your shop be more profitable
Tekmetric can help you be more profitable by providing the features and reporting you need to make better business decisions. Tekmetric shops average a 65% labor profit margin by utilizing modern features that help you build trust with your customers and keep them coming back year after year.
Custom labor matrix: Tekmetric allows you to set up labor matrices that automatically adjust your mechanic labor rate. This ensures you don’t undercharge for difficult work.
Real-Time reports: Stop waiting until the end of the month to see if you made money. Tekmetric gives shop owners a real-time look at their gross profit, plus many other helpful metrics.
Measuring effective labor rate: As we discussed, your posted rate isn't always what you take home. Tekmetric tracks your ELR automatically, showing you exactly where "leaks" (like excessive discounting or slow techs) are happening.
Digital Vehicle Inspections (DVI): Higher rates are easier to justify when you can show the customer exactly why they need the work. Tekmetric’s DVIs build trust and increase customer satisfaction, making the price conversation much smoother.
Technician efficiency: By tracking technician efficiency and productivity within the platform, you can see which members of your team are hitting their goals and which employees might need more coaching.
Final thoughts
Setting your labor rate requires constant attention to your local market, your internal costs, and the evolving complexity of car repair. By following these steps, you’ll ensure that your shop doesn't just keep cars running—it keeps your business thriving. If you have questions about Tekmetric or how we can help your shop be more profitable, book your free demo today.
Shop Management
Thought Leadership
Setting Your Automotive Repair Labor Rate (5-Step Guide)
Today, online reputation management is a key tactic top shops use to attract more customers. Online presence is often the first—and sometimes only—impression a customer has of your business. This guide will dive deep into why automotive reputation management is no longer optional, how it impacts your SEO search rankings, and the specific strategies you can use to attract more 5-star reviews.
The importance of online reviews for auto repair shops
Why do online reviews matter so much in the auto repair world? The answer is that most customers check online reviews from Google and other search engines as part of their decision-making process. In addition, online reviews impact your SEO rankings and can help you differentiate your shop from the competition. Here are some other top reasons to keep track of your reviews:
Build trust
High-quality testimonials help build trust before the customer even sets foot in your lobby. Research consistently shows that the majority of customers read online reviews before feeling they can trust a local business. For auto repair shops, positive reviews act as social proof that your shop provides quality services.
Local SEO
When a prospect searches for "oil change near me", the results they see are heavily influenced by SEO strategies. Google prioritizes businesses with a high volume of new reviews, high star ratings, and a complete, active profile. If your competitors have 200 reviews and a 4.8-star average, while you have 120 3-star reviews from 2019, Google will rank your competiton higher. Review management directly impacts your rankings, rankings impact your visibility, and visibility impacts how many customers show up to your shop.
Beating the competition
Go ahead and Google your competition. How many reviews do they have? Do they average 2-star or 5-star reviews? By focusing on auto repair reputation management, you can position your shop as the best in your area. New customers are often hesitant to try a new shop; seeing a consistent stream of positive feedback from satisfied customers lowers that risk and encourages them to stop by.
Another way to move past your competition is to leverage Google Ads. Search ads can help you boost your visibility in more competitive markets and keep your business top of mind.
Best practices for managing your shop's online reputation
Successful auto repair reputation management is a continuous project. Top performing shops have software and employees dedicated to monitoring online reviews. To stay ahead, shops need to follow best practices to maximize their online visibility.
Claim and optimize your profiles
Claim your listings in Google Business, Yelp, and Facebook. Once claimed, you can optimize your profiles by making sure your business name, address, and phone number are consistent across the web. Upload high-resolution photos of your shop, your front-desk staff, and your comfortable waiting area. A professional-looking profile sets the stage for a 5-star experience.
Use the right tools
Many shop owners utilize reputation management software to aggregate reviews into a single dashboard. This allows you to ask for reviews and respond to them in the same platform.
Tek-Tip: Overwhelmed? Tekmetric offers auto repair reputation management software that makes it easier to attract new reviews and respond to exisiting review in one platform.
Diversify your review sources
While Google reviews are often the focus of local SEO, don't ignore other platforms. Some customers prefer Yelp, while others might find you through social media. Directing a small percentage of your review requests to different platforms ensures a well-rounded online presence.
Make it a team effort
Your service advisors are the faces of your automotive brand. Train your staff on the importance of the customer experience. If your technician or service advisor is mentioned in a 5-star review, encourage that behavior by rewarding them accordingly. Make it a competition to see who can earn the most 5-star reviews in a month.
Quality control
Use customer feedback internally to improve your operations. If you notice a trend in negative feedback regarding long wait times, don't just ignore it. Use those insights to refine your workflows and teach employees.
How to respond to customer reviews
Responding to online reviews is perhaps the most critical part of review monitoring. It shows potential customers that you are attentive and care about your customers.
Responding to positive reviews
Don't just "like" a 5-star review. Take a moment to write a personalized response.
Acknowledge them by name: "Hi Sarah, thank you for the kind words!"
Highlight a specific service: "We’re glad we could get that oil change done quickly for you."
Invite them back: "We look forward to seeing you at your next service!"
These responses reinforce customer trust and encourage them to come back to your shop for service in the future.
Handling negative reviews
Negative reviews are inevitable in the any business. Parts fail, delays happen, and sometimes there are misunderstandings about pricing. The key is how you handle the negative feedback.
Stay professional: Never get defensive or angry. Remember, your response is for the future customers reading the review, not just the upset one.
Acknowledge and apologize: "We’re sorry to hear that your experience didn't meet our standards."
Move it offline: Provide a name and a phone number for them to contact directly. "We would like to make this right. Please call our manager, Jim, at [Number]."
Keep it brief: Don't get into a "he-said, she-said" battle on public forums.
Tekmetric offers a feature called private feedback where you can engage with upset customers before it goes public.
Benefits of responding
Regularly responding to reviews tells search engines and prospects that your business is active. This can provide a slight boost to your search rankings. In addition, if you successfully resolve a customer's issue mentioned in a negative review, you can ask them to go back and edit their star ratings or delete the negative feedback entirely.
How to attract more 5-Star reviews for your automotive business
Reviews can come in naturally but customers often need to be prompted to leave a review. While unhappy customers are often highly motivated to vent, satisfied customers frequently forget to share their experiences. The best performing shops have an automated way to ask for, collect, and respond to reviews.
Ask consistently
The simplest way to get more positive reviews is to ask for them. However, timing is everything. The best time to ask for a review is within 24 hours of service before customers move on and forget. A simple, "We're so glad we could get you back on the road! If you're happy with the service, would you mind leaving us a quick review?" goes a long way. Make it easy for the customer by providing a Google review button or link with your completed invoices.
Don’t forget that physical signage can be effective as well. Add a QR code or sign in your lobby asking for customers to leave a 5-star review which will enter them into a drawing for a free oil change.
Leverage SMS and automation
In the automotive industry, convenience is king. Using SMS for review requests has a significantly higher open rate than email. By integrating automation with your Shop Management System (SMS), you can trigger a text message to be sent automatically after a work order is closed. This message should include a direct link to your Google or Yelp profile, making the review process frictionless for the user.
Go the extra mile
One of the best ways to earn a 5-star automotive review is through transparency. Digital Vehicle Inspections (DVIs) allow you to send photos and videos of the needed repairs directly to the customer's phone. When a customer sees the worn-out brake pad, they feel more confident in the repair services. This transparency naturally leads to higher customer satisfaction and better reviews.
Final thoughts
Reputation management creates a natural cycle where great service leads to positive reviews, which improves your local SEO, which attracts new customers, who then leave more reviews. If managing all of this feels overwhelming, Tekmetric can help with online review management software specifically tailored for the automotive industry.
By implementing a clear reputation management strategy, utilizing automation for review collection, and staying active on social media and review sites, you ensure that your auto shop remains the top choice in your community. Remember, every satisfied customer is a potential spokesperson for your brand.
Thought Leadership
Shop Management
Auto Repair Reputation Management: The 5-Star Guide
.png)
.svg)
.svg)
.svg)
.svg)
.svg)
.svg)
.svg)
.svg)