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How a Cloud-Based Shop Management System Will Help Grow Your Business

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May 3, 2024

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Read time: 3 min

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.

Tracking Your Shops Performance

Part of the benefit of using a cloud-based shop management system is the huge level of data collected. But more importantly, the power is in using that data to see how your shop is doing. Any solid shop management system should at least measure:

  • Average Repair Order
  • Car Count
  • Close Ratio
  • Total Gross Sales
  • Total Gross Profits

However, a great shop management system will show you much more, and present the information in a way that is easy to view, analyze, and understand.

With Tekmetric’s real-time Reports, you can track key performance indicators, including:

  • Profits on parts and labor, so you know how to protect and increase margins as needed
  • All Declined Jobs, so you can run sales and marketing campaigns to re-engage customers and close more work
  • Lifetime Visits, Lifetime Spend, Lifetime Profit, Lifetime ARO, and Lifetime Close Ratio, so your service advisors can cater to the needs and tendencies of every customer
  • Customer Close Ratio broken down by service advisor, so you can analyze individual service advisor performance and coach your team as needed
  • Sold Work by each individual technician, and Technician Efficiency both individually and as a team, so you can coach technicians on inspections or other aspects of the job if needed
  • Customer leads broken down by marketing channels, so you know where to invest your marketing dollars.
  • Customer leads broken down by source, so you know precisely how customers heard about your shop
  • Total amount in discounts given across Parts, Labor, Sublets, Fees, or Fixed Discounts on ROs, for a clearer idea into how discounts impact shop performance and to cap discounts to protect your profits

A system that improves life for you, your team, and your customers will already lead to new growth for your auto repair shop. Real-time reports open up even more overlooked opportunities for growing shop performance.

Find a Shop Management System that Scales as Your BUsiness Grows

The decision to upgrade your shop management is a positive indicator that your shop is poised for growth in the near future. 

And a cloud-based shop management system will help your team create the right foundation to build off of.

With Tekmetric, you can: 

  • Add new users without burdensome costs. Add service advisors, technicians, and other team members—such as a service manager or a parts foreman—to the system without having to do the math on whether or not each new addition is worth the cost
  • Pay a flat rate if you open another shop, too, which is a much more manageable way of paying than trying to figure out your costs for the future based on projected hiring patterns
  • See reports across all your shops in one place with Tekmetric Multi-Shop.

Adding team members to your system and training them to take on different roles and responsibilities should put more money in the bank, not take money o

You work hard to grow your profits. You should be able to keep as much of your payoff as possible!

Shop Management Systems are Always Evolving

Our development team drives toward the constant pursuit of innovation.

Tekmetric never stays static; our system dynamically evolves, keeping shops who use it at the forefront of the auto repair shop industry. We consistently communicate with our users, striving to achieve our max potential.

As you innovate as a shop owner and your team grows, we hope to fuel that growth and support you in your goals and ambitions.

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

FAQ

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Before you sign, make sure the shop management software is worth the commitment

Committing to shop management software is a real decision. The right platform runs your front counter, bays, reporting, and customer communications. The contract you sign shapes how your shop operates every day.

That’s exactly why the contract deserves scrutiny before you sign it. A confident vendor will answer hard questions plainly. A shaky one is vague. The five questions below are designed to help you tell the difference and to keep you from getting locked into a contract that doesn't serve your shop.

Here’s what to ask before you sign anything.

1. How flexible is the contract, and do you have to commit to a full year?

What to ask: Do you offer month-to-month billing, or is an annual contract the only option? What happens at renewal?

Why it matters: Your shop isn't static. Car count swings with the seasons, you might open a second location, or you might simply want to prove the software works before you commit long-term. A rigid 12-month lock-in removes all of that flexibility and puts the risk on you.

What a good answer sounds like: A vendor that believes in its product will let you choose. Tekmetric offers flexible month-to-month billing or a discounted annual plan, with no long-term contracts required. That structure means you can scale with your season instead of renegotiating, and the annual plan becomes a discount you opt into — not a cage you're stuck in.

And if a contract is the very thing keeping you stuck somewhere else? That doesn't have to be a dealbreaker. Tekmetric routinely works with shops that want to switch but are locked into other contracts and frees them up to make the move. Tekmetric customers also see an increase in their ARO after switching.

2. What does support actually look like after I sign?

Support quality is invisible during the sales process and unavoidable afterward. Plenty of shops sign up on the strength of a great demo and then discover that help means a ticket queue and a long wait. When your shop management system goes sideways, every minute is a car you can’t check out. Where that support sits matters too — a U.S.-based team understands how your shop actually runs and speaks your language, literally and operationally.

Look for multiple live channels and people who understand shops. Tekmetric provides U.S.-based phone, chat, and email support — real people, not just a knowledge base. Shop owners consistently point to responsiveness as a reason they stay.

“There is one support number to call when there’s an issue. There hasn’t been an issue. At all. It’s amazing.”
-Andrew Klement, Finley River Auto & Diesel

Ask any vendor directly where their support team is located and how a live person is reached during your busiest hours.

3. How open is the platform, and will it work with the tools I already use?

Your shop already runs on a tech stack — parts suppliers, QuickBooks, labor guides, a payment setup. Software that can’t connect to those tools forces double data entry and manual workarounds that eat the time you were trying to save. A closed platform quietly becomes a tax on your team every day.

A platform should meet your shop where it is. Tekmetric connects to more than 70 integrations consolidated into one workflow, spanning parts ordering, accounting, and more. Shops feel the difference when it works.

“They integrate so seamlessly, it’s amazing how quickly when we turn an RO on or open it up and approve it that it jumps into AutoVitals for the technicians.”
-Kelsey Lancaster, Performance Automotive Repair

Ask the vendor to confirm your specific vendors are supported before you sign. An open platform will have a clear, published integration list.

4. What do you actually guarantee about onboarding?

Onboarding is where good software deals go bad. If setup drags for weeks, or if you’re left to figure it out, the time savings you were promised evaporate, and your team’s trust in the new system goes with them. This is the single most common place buyers get burned.

You want a person accountable for your launch, not a self-serve checklist. Tekmetric assigns a dedicated onboarding manager and is often praised for simple onboarding. Most shops are up and running within a week, not dragged through a monthlong setup. That speed shows up on the floor, too.

“I mastered it within a week. … I have new employees starting all the time and I know that within a day or two they can write up a customer, build estimates, cash out a customer, make appointments.” 
-Leroy Ingram, Ooroo Auto Care

Your existing customer and vehicle data comes with you, so you’re not starting from a blank screen. Ask any vendor for a realistic timeline, who your point of contact is, and how your data gets moved over before you sign.

5. What happens if it isn’t the right fit?

Nobody signs up planning to leave, but how a vendor handles the exit tells you how they think about the relationship. A technology company counting on lock-in rather than results is a business betting you won’t be happy enough to stay by choice. The freedom to walk away is what makes staying a real decision.

A month-to-month option is itself a form of freedom. It means a vendor has to earn your business every month rather than bank on a signature. Tekmetric’s no-long-term-contract structure reflects that mindset, and your shop’s data is yours. Don’t let a fear of switching hold your shop back.

“We were just scratching our heads like why we hadn’t been doing this for a long time.” 
-Steve Flones, KC Auto Clinics

Still, it’s fair to ask any vendor to walk you through how you’d wind things down and take your records with you if the fit ever changed. A confident technology vendor answers that plainly.

The through-line: confidence answers questions

Notice what all five questions have in common. A platform that’s confident in the results it delivers doesn’t need to trap you. It offers flexibility, real support, open integrations, stands behind onboarding, and lets you leave if it’s not working. Lock-in is what vendors reach for when the product can’t meet shop demands.

That’s the lens to bring into every demo. You’re not just buying features — you’re choosing a partner for how your shop runs every day. Make them earn your signature and continued business.

Have you submitted your taxes yet, or are you struggling to get your records in order and submit everything on time? Wherever you are in your tax prep process, you need to pull together a plan and act fast or you may have to pay penalties.

Sometimes, even hearing the word taxes can be scary, but unfortunately, taxes are one fear we don’t get to avoid indefinitely. Auto repair shop Tax Day is the same day as everyone else’s Tax Day, and things just get more complicated if you don’t file on time. The clock is running out on your time to file without an extension this year, and even filing for an extension comes with its own deadline.

But if you tackle the process with knowledge and empowerment, doing business taxes and sales tax on car repairs at the shop doesn’t have to be difficult.

Here are five tips that can help you have a better auto repair shop tax season.

Disclosure: the information in this article is not to be taken as formal tax or legal advice. Individual business circumstances vary, and you should always consult with a CPA and tax attorney.

5 Things Shop Owners Can Do to Prepare for Tax Season

January 16, 2023

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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
Scaling Your Auto Repair Business With Real-Time Reports

March 24, 2022

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