6 Ways to Maximize the Efficiency of Auto Repair Shop Team

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Read time: 3 min

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.

👉 Ready to grow your automotive business? [Book a personalized Tekmetric Demo Here]

FAQ

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Prasanth Chilukuri understands the challenges that shop owners face each day with gaps in their efficiency and margins, which is why he co-founded Tekmetric with Sunil Patel in 2016.

Vehicle Service Pros published some of Prasanth’s tips for strategically growing an auto repair business with a shop management system like Tekmetric.

You can access his full piece here, or check out some of the highlights below.

Balance Is Key to Making Better-Informed Business Decisions

Shop owners make countless daily decisions that affect their customers, their team, and their business.

Making good business decisions is essential to keeping everyone happy and keeping the lights on in the shop, but how do you know what the right decision is?

According to Prasanth, the key to any successful business is finding the right balance between soft skills like intuition or relationship-building and hard skills like data analysis.

Both types of skills are important, but knowing when to employ each one is the trick to making better-informed decisions and growing your business.

Intuition is useful when shop owners have to make split-second decisions and often goes hand in hand with interpersonal skills. The auto repair industry isn’t just about cars, after all; it’s about people, too.

By learning how to pick up on cues and anticipate the needs of customers, employees, and vendors, shop owners can foster long-lasting relationships that grow alongside their business.

Of course, there’s only one way to know whether your shop is truly turning a profit: look at the numbers and analyze the results. Data can support any hunches you have about the health of your business, for better or for worse, so you can plan accordingly.

But if your shop is still tied to manual methods, gathering key information about parts usage and labor costs is probably not easy or convenient.

Why Manual Methods Just Can’t Keep Up

A shop management system might not be able to make business decisions for you, but it can help shop owners make sense of their key metrics and data. According to Prasanth, looking at the cold, hard facts is essential to boost the efficiency and profitability of the shop.

The science of data might seem contrary to the art of intuition at first, but they’re more related than you might think. As Prasanth describes, data can add support to a shop owner’s intuition or observations and reveal key information that can’t necessarily be gathered from conversations with customers and employees.

Unfortunately, trying to sort through the shop’s data by hand can be exhausting and often means missing family dinners to crunch the numbers after hours. And manually calculating daily, weekly, or monthly metrics can quickly become a headache with much larger room for human error.

Without real-time reporting tools, inventory counts and gross profit can’t necessarily be trusted and will always provide an out-of-date view of your business at best.

Being tied to manual processes for data collection also means being tied to the shop and losing out on valuable face-to-face time with the customers supporting the business.

As a result, shop owners are often left making the difficult decision between nurturing their intuition and building relationships, or focusing on the data and shop profitability when both are essential to the long-term success of the business. With Tekmetric, you can do both.

Get the Full Picture With Tekmetric

Tekmetric is a shop management system that comes fully equipped with business reporting tools within a repair orders software suite.

Tekmetric tracks key performance indicators like employee efficiency, parts usage, and profitability ‘round the clock so shop owners can focus on the more high-level aspects of their business.

Real-time reports are always available with numbers that are already calculated and organized.

A bird’s eye view of the shop gives shop owners the power to tailor their business plan and strategy by:

  • Adjusting parts and labor matrices to maximize margins
  • Extending or removing a running promotion
  • Deciding to add more people to the team
  • Knowing when it’s the right time to expand the business with new bays or by opening a new location
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Drivers can sometimes see repairs as frivolous or not important.

Reasons for their skepticism can stem from many things: the customer can’t see what the service advisor is seeing on their end; they might not have a way to gauge the importance of the issue at hand; maybe a service advisor doesn’t communicate the problem correctly or forgets to ask the customer if they’re following along.

Tekmetric’s features empower auto repair shops to improve customer transparency, streamline communication, provide flexible payment options, and simplify the payment process.

These promote customer trust, enhance satisfaction, and ultimately help your shop close more repair orders. And that's what matters most.

Because at the end of the day, if customers feel they can trust your shop, they'll be more likely to return the next time they need something repaired.

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