Many shop owners believe that their Effective Labor Rate (ELR) is the ultimate way to measure shop performance. If you want to boost your ELR, you have two choices:
Pay your employees less
Improve your shop efficiency
Since your employees are the lifeblood of your company, team efficiency is the way to go. The more efficient your business is, the better your month-over-month performance will be, positively impacting not only your bottom line but also your peace of mind.
Here are 6 strategies that you can use to boost team efficiency and enhance your ELR.
1. Improve In-Shop Communication
Communication is key to providing good service. It is up to your service advisor to make the best first impression on your guests. When a guest walks through your shop’s doors, your service writer should immediately greet them and learn what’s wrong with their vehicle.
But if that service writer has to then leave the desk to carry a message to the technicians, there may not be a service writer available to offer a friendly greeting to the next guest that walks into your shop.
The moral of the story is that while some communication tasks require the human touch of good old-fashioned face-to-face conversation, others can be automated with technology.
The less time a service writer has to spend jumping through hoops, the more time they can spend providing a quality service experience to your guests. Your team also needs to be able to take care of simple tasks quickly.
If a part arrives, and the person you have in charge of receiving that part is busy, you might have a tech waiting for the part to get to work. The funnels in your shop should help you complete repairs, not clog up your process.
2. Foster a Supportive and Collaborative Environment
Oftentimes, the people who have the best ideas for improving your shop are the people who work there day-to-day: your team. The people who are directly greeting guests or working on their vehicles sometimes see things that management doesn’t see.
They know where small inefficiencies are and how those small inefficiencies can snowball into large service delays.
When you set up a foundation for your team to confidently let management know where the hold-ups are, they can begin to work together and open up a whole new way of doing business.
Conversely, if your management and individual team members are broken into siloes, problems remain unsolved, causing labor operations to drag and potentially bringing down team morale.
3. Support The Dreams of Your Team
Often when we’re looking at our balance sheet and our shop’s Effective Labor Rate, we lose sight of the fact that our team members are not just numbers but are also people who have their own dreams: their goals, their wishes, things they want to do, and places they want to go. When was the last time you asked them about them?
When employees know that you care about what they want for their future, they tend to do a better job. They feel more motivated. They take pride in their work and bring a positive attitude into the shop.
They pay more attention to detail. And they are more likely to support other team members because they have a greater sense of solidarity with one another. They are also more loyal, reducing overall turnover and angst among your ranks.
4. Assess and Upgrade Communication with Your Guests
Let’s face it: spending money on car repairs isn’t fun. People would rather spend their money on something they’ll enjoy, so when they are spending money on auto repair, they want to be certain that their auto repair costs are worth it, especially since they will not have their vehicle for at least a few hours.
If they don’t understand their estimate, their repair order, or the progress of their repair, and don’t feel confident in the information provided to them, your guests may become frustrated or even decide to take their vehicle somewhere else.
On the other hand, good communication by service writers can make guests feel more comfortable with your overall guest experience, making it more likely that they will stick with your shop and refer their family and friends. After all, word of mouth is one of the most powerful ways to get new customers.
In other words, good communication with your guests can exponentially improve your revenue.
5. Incentivize Service Writers and Technicians Based on Metrics
Chances are that your technicians have a passion for working on cars. But working on the same dozen models day in and day out can become monotonous and make work less exciting. Similarly, your service writers might really enjoy talking to people but feel worn down after a long day of talking to customers and building repair orders.
One way to reignite your team’s spark is by giving them something to be excited about—friendly competition. According to TalentLMS’ 2019 Gamification and Work study, employees say gamification makes them feel more productive (89%) and happier (88%) at work.
Imagine your mechanics ending each week by comparing who received the most customer compliments or which service writer upsold the most tire rotations. And what if you rewarded weekly or monthly winners with gift certificates or a party for your entire team when everyone does a great job as a company?
Gamifying gives you the chance to have fun while you work and reward your whole team for going above and beyond. And when auto repair teams feel rewarded, they are more loyal and more likely to provide quality service with a smile. And what shop owner doesn’t want a team like that?
6. Empower Service Writers to be More Independent
Processes are a huge help to bringing order to day-to-day operations, but processes with too many checkpoints or too narrow a funnel can slow the business down. For example, if service writers are required to get your approval to lower an estimate or make other changes that may close the deal, they can’t move orders as quickly as they want, leading to frustration and lowering their overall performance.
Meanwhile, you may find yourself spending more time directly managing employees instead of doing what shop owners should be doing: innovating and making enhancements to their auto repair business.
In the fast-paced world of auto repair, every minute counts, and your technician's time is your greatest asset. You’re not just managing a business—you’re orchestrating a complex balancing act of diagnostics, repairs, customer interactions, and team coordination. With so much on your plate, wouldn’t it be great if you had a tool that sped up the inspection process and created more customer trust? Well, your wish just came true.
Available for free across app stores, the Tekmetric Mobile App is designed to streamline your inspection process, boost productivity, and build stronger, more trusting relationships with your customers—all while putting more money in your pocket.
The Freedom to Do More, Right from Your Phone
In the world of auto repair, time is money. Every second your technicians spend away from their primary tasks, whether they’re running back to the computer to log information or trying to send and upload pictures, is time that could be spent actually working on vehicles. The Tekmetric Mobile App changes all that by bringing everything your technicians need right to their fingertips.
With the Tekmetric mobile app, your technicians can easily complete digital vehicle inspections directly from their phones (iPhone or Android). No more clipboards, no more back-and-forth to the computer. They can take high-quality photos and videos, accurately document vehicle conditions, and perform detailed inspections on the spot. It’s fast, it’s efficient, and it keeps your team focused on what they do best—repairing cars.
Cut Time Spent on Inspections in Half
The Tekmetric Mobile App isn’t just a convenience; it’s a productivity powerhouse. It streamlines the inspection workflow, allowing your technicians to move seamlessly from one task to the next without skipping a beat. The app’s intuitive interface means there’s no steep learning curve—your team can start using it immediately, saving valuable time from day one.
Imagine the impact on your shop’s efficiency when your technicians are no longer bogged down by administrative tasks. Inspections are completed faster, data is recorded more accurately, and your team is free to focus on getting vehicles back to their owners quickly. This increase in productivity means more cars serviced each day, which directly translates to more revenue for your business.
Increase ARO by adding photos
Trust is everything in the auto repair industry. Your customers need to know that they can rely on you for honest, accurate assessments of their vehicles. The Tekmetric Mobile App helps you build that trust by making it easier than ever to communicate with your customers.
With the app, your technicians can document vehicle conditions with detailed photos and videos, giving your customers a clear, visual understanding of any issues. Instead of just telling them what’s wrong, you can show them. The Tekmetric mobile app takes this to the next level with its photo markup feature, allowing your technicians to visually pinpoint exact issues on the images without slowing down. This transparency not only helps customers feel more confident in your recommendations, but it also fosters long-term relationships based on trust and satisfaction.
When your customers see that you’re being upfront and thorough, they’re more likely to approve necessary repairs and keep coming back to your shop in the future. The Tekmetric Mobile App helps you build that kind of loyalty, one inspection at a time.
Boost Monthly Revenue by $15k
At the end of the day, your shop is a business, and like any business, profitability is key. According to the 2023 Industry Index, Tekmetric shops who add an average of 25 photos and videos to their inspections see their ARO increase to $2500. The Tekmetric Mobile App is designed to help you accomplish just that. You can maximize your earnings by enhancing efficiency and customer satisfaction.
Faster inspections mean more vehicles can be serviced in a day, which leads to increased revenue. Additionally, when customers trust your assessments and feel confident in their decisions, they’re more likely to approve additional services, further boosting your sales. And because the app improves documentation accuracy and reduces the chance of errors, you’re also protecting your shop from costly misunderstandings and disputes.
The Future of Auto Repair is Here—And It’s Free
The Tekmetric Mobile App is more than just a tool; it’s a game-changer for auto repair shops of all sizes. It’s designed to fit seamlessly into your existing workflow, enhancing every aspect of your inspection process while saving you time and money. And the best part? It’s completely free to download and use.
Whether you’re managing a single location or multiple shops, the Tekmetric Mobile App is ready to help you take your business to the next level. It’s intuitive, powerful, and it’s available right now in your favorite app store.
Ready to Transform Your Shop?
Don’t let inefficiencies and outdated processes hold your shop back. The future of auto repair is here, and it’s as simple as downloading an app. Start improving your productivity, building stronger customer relationships, and increasing your profits today.
G2 is a peer-to-peer review site that scores different platforms and tools just like Tekmetric based on reviews from users, just like you.
Leveraging all the data, reviews and input they collect throughout the year, G2 analyses the results and announces the clear software leaders in a number of categories.
And Tekmetric was named a leader in not one, not two, but FIVE categories for Auto Repair Software, and has been awarded five new badges from G2 for their 2023 Summer Spotlight!
That means its.. TIME FOR SOME BURNOUTS! LETS GO!
Those five categories include:
Auto Repair Software Momentum Leader
Auto Repair Software Small Business Leader
Summer 2023 Auto Repair Software Leader
Best Relationship With Users
Easiest To Do Business With
Sorry for the humble brag, but honestly, this is all because of you, the users of Tekmetric!
Shop owner's, service manager's and technician's love for how easy Tekmetric makes it to run your shop is the star of the show here.
Remember spring and summer of 2020? A lot of us are probably trying to forget and move forward, and we feel you. It was a scary time period for everyone, including the automotive repair industry.
Last April, auto shop owners were wondering, are my customers going to come into the shop? If people stay inside, are they going to drive less? If they drive less, are they still going to come into the shop as frequently? What if other industries are affected, and people have less money for repairs?
We were nervous like everyone else. But anyone who knows Tekmetric knows that we’re committed to driving the auto repair industry forward; we wanted to answer these questions and put Auto Repair Professionals’ minds at ease.
We also wanted to enable shops to not only endure the pandemic but also grow and come out stronger than ever before.
Strength in Numbers
If there’s one thing that makes us feel confident, empowered, and like we know what’s going on, it’s numbers. (Tracking shop performance and providing insights is kind of our thing).
We’ve seen the power of metrics in shops across America, and we know that customers, service advisors, technicians, and the entire auto repair industry benefit when auto shop owners can make informed decisions.
So we launched the TM-500 Index. The TM-500 tracks the Average Repair Order and Car Count of five hundred auto repair shops located across the United States. But data don’t mean squat if it ain’t easy to read. The TM-500 let’s users sort data by time and region so they can quickly explore trends.
Want to know the ARO and Car Count between the months of June and November of 2020? Simply set the time period “by month,” and the TM-500 will generate an easy-to-read graph.
Want to know if shops in midwest states had a higher or lower Car Count than southwest states last summer? Simply set the time period you want to observe, and hover over different regions on a map of the United States to learn how they performed.
Just as the Tekmetric system for auto repair shop management gives shop owners better insights into their shops, the TM-500 gives Auto Repair Professionals better insights into their industry.
But knowing is only half the battle.
A Catalyst for Digital Transformation
The auto repair industry has lagged behind almost every other service industry in how we utilize technology. Almost anyone with a smartphone can order a pizza, sushi, enchiladas, or any other food they want and track it while it’s being delivered to their door.
Meanwhile, someone paying hundreds or even thousands of dollars for a new transmission still has to go in-person and deal with a half-legible piece of paper that feels greasier than the pizza and enchiladas put together!
But we get it. People are sometimes reluctant to change. For many auto shop owners, however, the COVID-19 pandemic was the “now or never” moment to fully digitize their shops.
In 2020, Tekmetric prioritized the rollout of several features we had been working on to help shops provide their customers with the experience they’ve come to expect in almost every other part of their lives. In April of 2020, we rolled out Text-to-Pay, allowing shops to invoice and collect payment via text message.
In November of 2020, we rolled out True Two-Way Texting to make it easy for service advisors and customers to communicate throughout the entire repair process.
Combined, these two features enabled Tekmetric users to provide a completely touchless experience to their customers without sacrificing the quality of their work or customer service.
Much like in other industries, customers who bring their cars in for repairs appreciate the extra service and transparency of a more enhanced, digitally assisted customer experience.
As we watched many shops grow by using Tekmessage and Tekmerchant, we kept an eye on the overall performance of the TM-500. We were able to see when shops began to bounce back in summer after an early slump, and developed other understandings about where the industry was headed.
Over time, we have added new metrics to the TM-500 such as state-by-state Labor Margin, Parts Margin, Effective Labor Rate, and Car Count to gain a more complete picture of these high-performing shops.
What Have We Learned Since the Onset of the Pandemic?
When making conclusions about where the industry is going, we like to be informed by both quantitative and qualitative data.
The numbers give us a factual look at what’s gone up or down, and talking to people in the industry helps us make correlations between how certain behaviors, processes, and principles affect these trends.
Between the data we gathered from the TM-500 and the feedback we were able to gather from talking to auto shop owners, here’s what we have learned.
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