As 2023 winds down, it's a great time to reflect on the strides made across the independent auto repair industry.
Throughout the year, we’ve been collecting data, talking to shops that rely on Tekmetric every day, and gaining valuable insight into how your shop can prepare for the best year possible in 2024.
That’s why we released our latest Industry Index Report earlier this year, to give shops and industry resources to not only compare their performance against other shops but also some concrete tips and tricks they can implement at their shop.
This comprehensive analysis not only assesses the industry's vitality but also seamlessly integrates unique Tekmetric’s partner shop data, presenting a goldmine of opportunities for optimizing shop management.
The result is a compelling narrative that provides a bird's-eye view of auto repair in 2023 and delves into Tekmetric-specific data, to offer shops like yours the actionable insights you need for success in 2024.
Here’s how shops can take advantage of these trends in 2024.
1. Ride the Wave of Industry Growth with the Right Tools For The Job
Despite the looming threat of a recession, the auto repair industry has expanded as customers choose to repair their existing vehicles rather than purchasing new.
This presents an opportunity for shop owners to ride the wave of industry growth and expand their businesses – with the right tools for the job.
In 2022, the auto repair industry defied economic uncertainties, witnessing a remarkable revenue surge of 9.7%, and the momentum continues with an anticipated additional growth of 8.1% in 2023.
Tekmetric shops in particular have been at the forefront of this upward trajectory, reporting a notable 6.35% increase in cars occupying their bays. Furthermore, a staggering 80% of open repair orders within Tekmetric shops were not only completed but also promptly paid in full.
As a testament to the efficacy of Tekmetric tools, users also experienced a robust 55.86% average profit margin, coupled with an impressive $585.91 Average Repair Order (ARO).
These trends underscore the potential for auto repair businesses to not just weather economic challenges, but to thrive and expand by leveraging insights and functionalities from a shop management system like Tekmetric.
2. Get More Value Out of The Work Your Shop Does
Maximizing efficiency through data is the key to unlocking the full value of a shop’s work.
One notable avenue is the strategic use of unique matrices. In 2023, shops that adopted this practice with their parts matrices experienced a 35% profit margin on parts.
This optimization not only enhances the shop’s bottom line but also underscores the potential for shops to boost their profitability through streamlined processes significantly.
Moreover, approximately 45% of shops used labor matrices to set varying labor rates, culminating in an average hourly technician rate of $27.26. This rate stands notably higher – 19% to be precise – than the national average reported in 2023.
Adopting these matrices demonstrates an intentional approach to labor management, allowing shops to tailor their pricing structures based on factors such as job type, expertise, specialization, or customer requirements.
3. Meet Customer Demands with Modern Solutions
Modern customers have modern expectations. That's exactly where modern solutions like a cloud-based shop management system come in.
Take Advantage of Digital Inspections and Tools
We've heard it time and time again, customers may not always trust auto repair shops and might feel a little weary approving costly repair bills, no matter how necessary they might be. Of course, this not only means a declined job for your shop, but more importantly, at best an even more costly repair down the line, or at worst a potentially dangerous situation on the road.
That's why your shop needs to work to build that trust with customers. When they feel that your shop is on their side offering valuable advice and transparency regarding necessary repairs, they'll be more likely to approve those repairs.
Shops should also consider texting their guests. We get text updates from our doctor's office or for our pizza delivery, so why shouldn't shops text their customers as well?
The convenience makes it easier for your shop, who can text directly from your SMS, while customers don't have to wait for a free minute to answer your call or authorize repairs -- that can all be done instantly, in real-time, through texts.
Prepare For the Year Ahead
Tekmetric's 2023 Industry Index Report serves as a beacon for auto repair shops, guiding them toward growth, profitability, and enhanced customer experiences in the dynamic landscape of the industry.
In fact, it’s more than a just report – it's a guide for shop owners looking to create a business that thrives in the next year and beyond.
Download the report now and unlock a roadmap to success, powered by data, innovation, and Tekmetric's commitment to shaping the future of the auto repair industry.
FAQ
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Selecting the right business name for your auto repair shop can be a challenging task. Your business name will be the first impression your potential customers have of your shop and will determine how memorable your shop will be. Use the ideas below to brainstorm the perfect name for your auto repair business.
Creative auto repair shop names
On The Road Again Repairs
NextGear Auto Service
Check Engine Repairs
Torque of the Town
The Engine Room
Chrome & Steel Auto Care
Axle & Alloy Repair Co.
Peak Performance Garage
Smooth Ride Mechanics
Driven Dynamics
Velocity Auto Shop
ClearPath Automotive
Funny automotive repair shop names
The Brake-Up Shop
Motor Mouth Mechanics
Hit & Run Body Shop
Exhausted Mechanics
Hot Wife Automotive A/C Repair
Don’t Tread On Me Auto
The Laughing Lugnuts Auto Repair
Wheel Be Alright Auto Repairs
Motor Mouth LLC
Rust in Peace Repairs
Tek-Tip: Have you thought about how you will market your new business? We reccomend Shopgenie for all automotive marketing needs including websites, CRM, reviews, and more.
Cool mechanic shop names
The Car Whisperers LLC
RoadReady Mechanics
StreetSmart Garage
GearShift Garage
Velocity Motors
Gearhead Garage
The Repair Authority
PitStop Pros
Full Throttle Repair
Trackside Garage
Unique and catchy names
Car Medic Garage
Nuts & Bolts Car Mechanics
Unleaded Car Repair
Honest Engine Repair
Auto Barn Car Care
Iron Horse Garage
Blue Ridge Auto Works
RevSync Mechanics
The Auto Vault
Summit Auto Haven
Rust & Revive Repair
Simple auto shop name ideas
Car Surgeons
The Car Guys
Engine Experts
Quick Fix Automotive Repairs
The Brake Brothers
One Stop Auto Shop
Auto Solutions Inc.
Pit Stop Garage
Turbo Tires & More
Wrench Wizards
Service-Specific shop names
Brake Check Repairs
Oil Be Back Automotive Repairs
Vivid Vehicle Body Shop
1 Hour Heat and A/C Auto Repairs
Battery Solutions LLC
Actually Discounted Tires
Renew Collision Center
30min Oil Change Shop
Restored Right Auto Body Shop
Mobile mechanic business names
Repair on Wheels
Roaming Automotive Repairs
One Stop Repair Shop
One Call Repairs
Wheels On The Way
(Insert last name) Mobile Mechanic
The Leaky Gasket Mobile Repair
1 Hour Mobile Mechanic
24/7 Mobile Mechanic
How to select the right auto repair shop name
Once you have your list of potential shop names narrowed down, it is time to do a final round of research to make sure your name is legal, optimized and ready to launch. Check out our final 6 tips and tricks below.
1. Legal checks
Before you can launch your new automotive shop name, you should check for Trademarks by visiting the US Patent and Trademark Website. Simply search your pending business name to see if it is taken or if you can proceed.
Search engine optimization for auto repair shops is an important avenue for driving brand awareness and new customers. To maximize your new business name, aim to include common keywords like “automotive”, “repair”, and “shop”. Also, try to use local terms like “Houston” to help search engines know where your services are located. Lastly, check to see if any competitors are using a similar name and determine if your name will be unique enough.
GoDaddy can check if your new automotive repair shop name is available to use. You will also be able to see how much the domain name will cost and whether it would be cheaper to use a variation of your business name.
4. KISS
Keeping your new shop name simple will help you in the long run. Potential customers will find it easier to remember (and share via word of mouth) if you keep it short and simple. Plus, shorter business names are easier to fit on business cards, advertisements, and social media.
5. Marketing
Looking down the road, your new business name should fit within your overall automotive marketing strategy. Are you planning to use a certain logo or color scheme? Make sure your name fits the theme you are aiming for and attracts your target audience. If you plan to use social media marketing, check to see if your business name is available as a social handle.
6. Set the tone
Your name is likely your first impression with your customers. Once you are ready to launch, give it one more review to make sure it conveys the right brand identity and message. Lastly, have a friend or colleague offer feedback on your business name and see how it resonates with them.
Closing Thoughts
Finding the right name for your business is a daunting task and we hope this guide has helped you brainstorm new business name ideas and narrow down your list. We recommend taking the extra time to make the right choice up front so you don’t have to rebrand down the road. As always, there is wisdom to asking for feedback from your community. Select your top 5 names and ask for help picking the best shop name for your business.
Building a startup takes time, effort, and a lot of determination. You and your team have invested in a great idea, and everyone works diligently to bring new team members, investors, and customers on board. However, the process doesn’t end once the product or service has taken off and gained popularity.
A startup can operate on a lean team, with people wearing multiple hats and taking on extra responsibilities. But as the company grows, it will be time to hire more employees and scale the company to meet demand.
How to scale the business is an enormous question that causes hesitation for many leaders. How do you expand your business offerings and your team without losing the heart and inspiration that helped the startup succeed in the first place?
In my own business, Tekmetric, which offers shop management software for auto repair businesses, I have relied on a few tactics that enabled me—and our whole team—to scale sustainably. Here are four of the most vital.
Thought Leadership
Shop Management
You’ve Built a Successful Auto Repair Shop Startup. Now What?
In auto repair, there are many moving parts to keep track of—both the literal parts your shop uses to repair vehicles, and the parts of your business that determine your shop’s efficiency, security, and ability to grow. If you want your shop to flourish, it’s crucial to devote part of your business to keeping track of the parts you order.
Many shops track parts in terms of cost of goods sold. The parts you need for the job are included on every repair order, so it’s easy to see what parts your customers are paying for as long as you have a solid process for building repair orders.
But what about in terms of accounts payable? How does your shop track how much you’re spending for parts from the supplier?
Thought Leadership
Why Match Parts from Repair Orders on Purchase Orders?