Tips for Running a Successful Auto Repair Shop

|

July 11, 2023

|

Read time: 3 min

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.

1. Increase Technician Productivity

Having high technician productivity is a top priority when building a flourishing auto repair business. When technicians work efficiently, they improve customer service. These technicians get cars back to customers faster, reducing wait times. Shop owners and service advisors should collaborate to create an environment that inspires technicians to do their best work. Here are a few tips to boost productivity at your shop:

  • Make sure the environment is comfortable in your shop. One that is too hot or too cold will make technicians and customers uncomfortable and hinder productivity. Have tools available to adjust the temperature, such as fans and heaters. Make sure water is also easily accessible for your workers.
  • Let your technicians and employees know how much you appreciate their work. Thanking them for a job well done can improve their motivation and encourage them to work efficiently. In fact, effective employee recognition can result in workers who are 5x as likely to see a path to grow with your organization and 4x as engaged with their work when compared to those who don’t receive regular recognition.
  • Embrace the potential of technology. Auto shop management software can help employees track their projects and jobs. This makes it easier for them to submit invoices and reports so they can focus more on the cars in the shop and less on organizational factors. It makes employees’ work more straightforward, further increasing
    their productivity. 

As you create a healthier work environment, you also gain stability within your business.

2. Promote Employee Retention

Employees who feel appreciated are more likely to stay with an organization. Since your technicians form the backbone of your organization, increasing this stability helps your business in all areas. 

Keeping your technicians satisfied and reducing employee turnover allows your business to maintain consistency and reliability. When your customers return, they see a familiar face they have already worked with and from whom they received good results. Customers know that they will receive the same level of attention and care. This relationship between technicians and customers can only grow if your employees work with you long enough to keep seeing the same repeat customers.

You also want to factor in the cost of replacing employees, as it can cost up to 1.5 times an employee's salary to train a replacement. It’s important to factor in training costs as well as recruiting costs and the price of lost productivity while the new employee trains for the role. This can quickly become a significant expense for businesses, so it’s beneficial to maintain an environment that facilitates happy, long-term employment.

If your business becomes known for high turnover rates, it becomes a challenge to maintain the consistency and reliability that you want to offer your customers.

To keep your employees satisfied and reduce turnover, consider the following:

  • Treat your employees well. This includes policies like maintaining a positive atmosphere and encouraging open communication with management.
  • Provide your employees with excellent benefits. Investing in your employees means investing in the future of your business. Offering a comprehensive benefits package helps you attract and keep the best talent.
  • Offer perks and incentives for a job well done. Let them know their hard work is noticed and appreciated while encouraging them to reach new heights.
  • Make sure they are well-paid. Keep your employees interested in working for you rather than being inspired to look for a better job elsewhere.

While it’s important to show your employees you care for them, you may also consider finding ways to let your customers know how much you appreciate them.

3. Reward Customers for Their Loyalty

Incentives to encourage repeat business can be highly effective. More than two-thirds of customers report that they adjust their spending so they can maximize their rewards points earnings. 

From an auto body shop perspective, rewards can take a variety of different forms. For example, you can offer a voucher after a certain number of services that offers a discount the next time the customer comes to the shop. You might also provide perks like free oil changes after a certain number of oil changes are completed by your technicians.

Some businesses may struggle with the idea of setting up a rewards program. It may seem counterintuitive, as shops have to sacrifice some of their earnings, such as the service discount or the value of an oil change, to get the program running. However, remember the number of customers who prefer to come back to their preferred auto body repair shop. When you establish a path to encourage customer loyalty, you can become the preferred shop for a growing number of customers and see your overall value increase.

A rewards program not only entices customers to keep returning but also builds your business’s reputation. This, in turn, can also encourage customers to recommend your shop to their family and friends. 

Tekmetric’s integration partners like Royalty Rewards and Wowcards can make it easy to create a rewards program to build your sales and discounts strategy to increase your business.

4. Offer Specials and Incentives to Grow Your Business

When you want to encourage new customers to try out your business, providing them with a  little extra boost in the form of a sale or discount can give them just the encouragement
they need.

You can construct these incentives in a few different ways. Consider creating a marketing plan that brings customers to your doorstep after they hear or read your ad across your active channels. In the campaign, for example, you can offer a special spring tune-up that you promote to your customers.

Other businesses might offer unique discounts for first-time customers, paired with loyalty programs, to encourage these customers to keep coming back. 

After you build a website, create ads that promote your business and services to potential customers searching online. Using search engine optimization (SEO) helps you create web pages that search engines see as helpful, so you can gain visibility. This can also provide
an excellent means of promoting the deals and discounts you offer to new and
existing customers.

You should also look for opportunities to further develop your online presence through reviews on Google and similar review sites. When satisfied customers leave these reviews, they vouch for your business to others considering patronizing your location. 

Some of the most common criteria that customers use when looking for auto repair shops include:

  • Reputation
  • Online reviews
  • Customer service
  • Credibility

Building an online presence through a robust website and positive reviews from past customers can help you meet all of these criteria in the eyes of potential customers. 

For this to be most successful, however, you want to ensure your online reputation aligns well with the quality service you offer your customers. 

5. Guarantee High-Quality and Efficient Service

The best way to ensure your shop attracts customers is to provide high-quality service they can count on. Customers want to know that they can trust you to take care of their vehicles, run a fair business, and provide outstanding service. 

To assure customers of the quality of your service, you can offer guarantees. Some shops may elect to promise that their repairs or work will last for a certain amount of time or miles. This assures customers that you do not cut corners with your work.

As you offer this exceptional service, focus on being efficient and convenient for customers. For example, hours that allow them to drop off and pick up their cars around their work schedules will encourage customers to return to your shop. Consider also creating a streamlined operational process that allows you to return cars to customers as quickly as possible while still providing quality work.

According to AutoNetTV, price and expertise also lead the way as factors that influence the autobody shop that customers elect to patronize. These factors remain critical to customers because they want to feel they get a fair price and expert work from their technician, particularly since price and work quality can vary from shop to shop. Emphasizing these factors in your own business can encourage customers to return.

Some strategies to provide convenient service for your customers include:

  • Sending text or email appointment reminders
  • Pick-up and drop-off services for greater customer convenience

A comfortable waiting area with snacks and beveragesAs you look for ways to improve the level of service you offer customers, using an auto shop management software tool can be the perfect way to take your efforts a step further. You can implement integration partners like Throttle, UpSwell and Tekmetric’s own true two-way texting to create an easy way to communicate with your customers.

6. Use an Auto Shop Software Tool

Auto shop management tools are explicitly designed to help owners manage their garage more efficiently, keeping you a step ahead of the competition. With the help of these tools, you will provide more reliable, quality service for your customers. 

For example, auto shop management software provides a variety of features to help your business thrive. You can use it to automate processes, such as:

  • Repair estimates
  • Invoicing
  • Scheduling appointments
  • Inventory management
  • Inspections

These features from auto shop management software help keep your garage on task, allowing you to provide customers with quick and accurate responses to their schedule and estimate inquiries. Taking care of tedious tasks like invoicing and inventory management automatically frees up time for your staff to focus more on customer service operations. With automated processes, you also reduce the chances of mishaps like inventory shortages.

Furthermore, optimal scheduling helps your technicians work more efficiently and provide better customer service. You will save time and money on the business management end. 

As you work to build a successful auto shop business, these areas play a central role in helping you serve your customers.

Manage Your Auto Repair Shop with Tekmetric

Managing an auto body shop is an exciting career field for anyone who loves cars. However, with over 80,000 shops across the United States, competition can be fierce. You want to run your shop optimally so that your business grows.

You’ve explored some key strategies you can use to optimize your shop operation, including reducing employee turnover, rewarding dedicated customers, offering convenience and sales, providing outstanding service, and using auto shop management software. If you’re ready to build your shop, Tekmetric is here to help. With automated reports, machine-learning capabilities, and the data to make informed business decisions, Tekmetric offers you the capabilities you need to thrive.

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

FAQ

More articles

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.

When you think about what makes the holidays a wonderful time of the year, perhaps images of spending time with loved ones, playing in the snow, and sipping hot chocolate come to mind.

Those activities are all part of the holiday spirit. But goodwill and charity also make the holidays a wonderful time of the year. And as an auto repair shop owner, you’re in a unique position to give back to your community.

There are different ways you can pay it forward—and if you end up liking how things go, you can make giving back a year-round activity, rather than just something you do during the holidays.

Co-CEO and Co-Founder of Tekmetric Sunil Patel joined Editor Chris Jones on Ratchet+Wrench Radio to talk about how shop management software suites are changing the landscape of the auto repair industry, especially when it comes to building relationships and communicating effectively.

Sunil also touched on the history of some of Tekmetric’s relationships and how Tekmetric makes sure the voices of shop owners are heard.

Listen here, or catch some of the highlights below.

Note: some of the following answers have been condensed for clarity and brevity.

Relationship-Building 101: Laying Down a Solid Foundation

Jones: The last time we saw each other was at WorldPac STX in Orlando. And that’s where you guys announced a partnership with Advance Auto Parts. I know a lot of our readers have seen it, but can you share a little bit about the details with our audience, just from your own words and perspective?

Patel: So we’ve had a great relationship with Advance Auto Parts for a very long time. And we wanted to leverage the relationship to try to get more shops to use Tekmetric, and it just happened to be the right place, right time.

Side note: For those that don’t know, Advance Auto Parts actually owns WorldPac and Sunil Patel’s relationship with both goes way back. Before co-founding Tekmetric, Patel owned an auto repair shop that was one of the highest purchasers of parts from WorldPac in Houston for almost a decade.

Jones: That’s kind of cool to see how the relationship evolved over the years.

Patel: It’s a big company. It’s not like turning a speedboat, it’s like turning a steamship. Sometimes it just takes time to let some of these relationships play out. It affects so many people. We have to be absolutely sure of how this is going to play out, and how it’s going to work.

Using Shop Management Software to Get Everyone on the Same Page

Jones: So let’s talk about shop ownership a little bit. You were once a shop owner kind of in the Dark Ages before we had these robust shop management software suites. What was it like for you to operate on these limited tools?

Patel: You know, it was tough. Customers didn't always respond back, and we would always have to follow up with a phone call. There was always a disconnect.

We were probably ahead of our time 12 years ago trying to get some of this stuff out. Tekmetric used a combination of manual processes and text messaging. Text messaging was pretty popular back then, but MMS or multimedia messaging or picture messaging was not so popular.

So adding that in the mix with communications and whatnot into one platform has been very paramount to the success of our company because it closes the loop between the vehicle owner, the shop owner, the technician, and the service writer.

It keeps everybody on the same platform and communications thread. That way everybody has full visibility into what's going on with the repair of that vehicle to ensure a timely repair—ultimately making the customer happy.