Find Reliable Automotive Repair Shop Software That Shops Trust

You’re looking for the right tool for your shop: something that can manage your shop's workflow efficiently, free you up to spend your time on important shop decisions, and grow your bottom line.

How do you know if a system is designed to grow your business? At the very least, it must measure your business. If a shop management system cannot accurately measure shop performance, it can’t tell you whether or not using that system has improved your business.

The automotive shop industry has grown tremendously between 2018 and 2023. It reached $59.1 billion in revenue, the result of a compound annual growth rate of .5%. Vehicle ownership drives a considerable amount of this growth, and it will increase through 2028.

This exciting, growing field offers tremendous potential for new auto repair shop owners. However, competition is fierce. Nurturing successful business growth comes down to running it optimally. In this guide, you’ll discover what you need to know about building an auto shop and how to thrive in this industry. 

How Do You Run an Auto Repair Shop?

Running a profitable auto repair shop long-term revolves around establishing solid relationships with your customers. Over 60% of customers say that they like to get their work done at the same shop, and 96% go to three or fewer locations when they need to get work done on their car. Gaining customer satisfaction through expertise and communication plays an important role in keeping your customers happy so that they return.

Proper auto shop management and best practices, such as improving productivity and rewarding loyal customers, keep your business competitive. Many strategies that strengthen your business will also incentivize customers and encourage them to return. Since customers do not want to go to numerous auto repair businesses, proving that your business is one they can rely on encourages this loyalty which strengthens your ROI.

To build a quality business, a business plan that emphasizes customer service and retention will take you far. You can incorporate a few central strategies into your plan to keep your customers happy.

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.