Why Your Shop Needs to Invest in Shop Inventory Software

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October 14, 2022

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Read time: 3 min

Let’s face it, tracking inventory is tricky. It takes keen attention to detail, an ability to anticipate your shop’s needs, great timing, and some serious research skills—not to mention a lot of time on the phone or computer, away from the action of the shop.

Bottom line? Keeping track of inventory is a job that most service advisors and shop owners didn’t sign up for. While some shops have a shop foreman to help with inventory, even the best foreman still needs a solid tracking system.

But when a shop runs low on the right tools and parts, it can mean turning away customers when you could be building loyalty instead. Simply put, without up-to-date inventory records, your shop may have to pump the brakes and turn away customers or delay jobs.

If your team wants to stay ahead in the industry, you probably see inventory upkeep as a frequent task. And without a shop inventory software, you might also spend hours calculating purchases, tracking orders, checking wear and tear to tools, and rotating stock.

Everyone has their own way of conducting the inventory process, but in general, inventory methods fall into three major categories:

  • Pen and paper
  • Excel/spreadsheet/template
  • Shop inventory software

If you’re still using pen and paper or a spreadsheet, it may be time to upgrade or at least supplement your inventory process.

Why Traditional Inventory Process Holds You Back

Inventory covers everything from equipment and shop tools to stock items like air filters, engine oil, oil filters, additives, wipers, and tire repair kits. And anyone who has gone through the inventory management process shelf-by-shelf knows that it can be a time consuming and draining chore.

Accurate tracking records for inventory are essential to keeping chaos at bay and ensuring the right tools and stock are always available. So long as your process works for you, there’s technically no wrong way to conduct inventory. Does that mean that all systems are equally convenient? No.

Tracking Inventory with Pen & Paper

Pen and paper inventory tracking may have its own charm, and the physicality of the process can be reassuring. It’s a tried and true method that has worked for shop owners since the dawn of the automotive industry.

But paper records also require significant physical storage space, are easy to lose or accidentally destroy, can only be accessed from a single location without duplication, and cost additional paper and ink to duplicate.

It is also easy to transpose numbers, misspell part names, or make any number of other simple human errors on paper.

But the biggest downside of pen and paper tracking is lost time. Written record keeping is an enormous chore to add to the already time consuming tasks of checking inventory, ordering new inventory, reviewing records, finding a number, and reconciling purchases.

Every minute wasted by a process that can be automated is money lost.

Tracking Inventory from a Spreadsheet

Conducting inventory with Excel or another spreadsheet is a good step up from pen and paper.

Spreadsheets provide room for complex tracking—a must for larger shops, shops that move a lot of inventory, and shops that service a wide variety of vehicles.

Though certainly not the fastest method of record keeping, spreadsheets are reliably faster than writing records by hand.

Duplication is also cost free, you can send the records to anyone as needed, and inventory calculations are made simple with spreadsheet formulas.

But as powerful as Excel may be, it offers limited automation, is restricted to one user at a time, saves files natively to a single computer unless deliberate backups are made, doesn’t come with a service support team that knows cars, and isn’t built for auto repair shops.

Human error is also still very much a risk with spreadsheets. A simple typo can impact an entire sheet.

While spreadsheets and pen and paper tracking might work for some shops, if your system is slowing you down, it could be slowing down everyone else in the shop, too.

An inventory system that lags behind can cost the shop money and mean turning away customers if parts or tools are continuously unavailable.

Leveling Up with Shop Inventory Software

Think of shop inventory software as a full-time inventory assistant. This assistant can’t count items on your shelves by hand, but once you input data for the first time, the software will automate most aspects of the inventory process for your team and radically simplify the rest.

Most shop inventory software can integrate with point of sales software to independently update your inventory records.

One of the greatest advantages of shop inventory software is that it lets you see what you have and what you need at a glance. Usually shop inventory software will offer a variety of views for the data it has collected. For instance, you can sort inventory movement by date and then switch to a view that shows only certain categories of stock.

Imagine that the same set of brake pads have been in inventory for over a year. At this point, you’re losing money on the item, and it is taking up space that a more profitable stock item might need. With traditional inventory methods, this detail might fall through the cracks. Shop inventory software makes it much easier to analyze data at any scale, even down to specific units.

With shop inventory software you can easily analyze what you need and don’t need. Your team can:

  • See what sells
  • Determine which brands customers prefer
  • Track your margins
  • See when you’re not getting your money’s worth
  • Make decisions as to whether you are undercharging or overcharging for different stock
  • Grow your margins
  • Place stock orders directly from the inventory screen

Why Cloud-Based Shop Inventory Software is a Game Changer for Auto Repair Shops

Cloud-based shop inventory software stores your data online through a portal accessible to your team from any computer, tablet, and even your phone! Cloud-based systems are just as secure, if not more secure, as hard drive storage and make collaboration possible as more than one team member can typically use the program at a time.

1. Reimagining Shop Management with Remote Access

The last couple of years has shown everyone that remote work tools are critical to adapting to ever-changing market conditions and consumer expectations. And for shop managers that may be on the road, or need the ability to access their shop's when they're away, remote access from cloud software is huge.

To this end, it is of paramount importance that software rises to meet users’ need for flexibility.  While not everyone in the automotive repair industry can work from home, keeping managers, service writers, and the rest of your team connected no matter where they are makes your crew even stronger. Cloud-based shop inventory software does just that.

2. Taking Your Work on the Road

Imagine being able to check up on your inventory with the same software from anywhere in the world. Going to a conference sometime soon and want to talk shop with your colleagues? Cloud-based shop inventory software lets you show off how your shop is performing just by logging in online.

Whether you want to brag about your latest success, take a deep-dive into your shop’s numbers, or ask for a mentor’s help, cloud-based shop inventory software is a great tool for hammering out the details without sitting behind a desk at one of your brick and mortar locations.

Take your inventory tools home or on the road and see how your shop is performing in real time. With cloud-based shop inventory software, you can achieve a better work/life balance while never being too far from your shop.

3. Keeping Data Safe

Another great advantage of cloud-based software is data preservation. While some amount of data loss is to be expected regardless of where you store your data, cloud-based shop inventory software means that you're not reliant on a single hard-drive or a single shop server, which may go down or cease to work at any point.

Just like paper records, digital records that are not backed up to or stored natively on the cloud can be easily corrupted, deleted, or otherwise destroyed. Though some steps may be taken to increase a hard-drive’s lifespan, cloud storage is ultimately safer and your best bet for long-term storage.

Tekmetric: A Better Way to Inventory

You may be asking yourself which shop inventory software you should try out at this point.

We’ve got you covered.

Tekmetric’s shop inventory software seamlessly integrates with our overall digital shop management system to create a user experience unmatched in the industry.

Tekmetric lets you and your team automate as much of the inventory process as you want so that you can enjoy more free time or make room for shop growth projects.

Tekmetric’s inventory tracking offers flexible categorization and filtering to make sure your service advisors, foreman, and other team members are never locked in to just one view of the shop’s data.

For instance, Tekmetric’s shop inventory software lets you organize parts as:

  • Below stock
  • Above stock
  • Out-of-stock

These views can be powerful additions when scheduling jobs and estimating service completion times.

Want to sort inventory still further? Filter parts by:

  • Brand
  • Part name
  • Part number
  • Retail price
  • Primary vendor
  • Part type

Now your shop can directly quote, order, and receive parts right from the inventory screen. You can also create parts markup matrices from Tekmetric, too. Never bounce back and forth between tabs or windows again. Tekmetric integrates with all your favorite parts ordering services:

  • NexPart
  • WorldPac
  • PartsTech
  • MyPlace4Parts
  • OEC Repair Link
  • AAP Direct Pro Catalog

Perhaps most importantly, Tekmetric makes it easy to grow your business and zero in on what your customers are demanding.

Most of us know the 80/20 rule. 80% of profits come from 20% of your product.

But if you’ve ever asked yourself what products are in that 20%, Tekmetric takes out the guesswork and helps you track stock item sales from a 30,000 foot view down to the most granular detail.

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

FAQ

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Whether you’ve worked in the industry for years as a technician or are considering moving into the automotive industry for the first time, owning an auto repair shop can be a very rewarding experience.

In collaboration with PartsTech, we reached out to our customer, Eric Reich, who purchased his auto shop in 2021, to learn about his experience and share it with you. 

Before becoming an auto repair shop owner, Eric worked for about ten years in the aerospace MRO (Maintenance, Repair & Overhaul) sector and about ten years in the electrical distribution sector. Looking for a change, Eric ultimately jumped into the auto repair industry by purchasing Bennet’s Automotive — a six-bay shop that services all domestic and Asian-manufactured vehicles.

The Dream: Owning his own business

For Eric, working at large corporations for 20 years became too predictably bureaucratic. He felt buried by meetings, paperwork, and slow decision-making. “After spending nearly two decades at corporate companies, I was looking for something I could call my own,” said Eric. “My goal was to be an independent business owner and not rely on large corporations whose only goal was to maximize profits at all costs. I found that independence when I purchased Bennett's Automotive, which has been in business since 1991.”

The Good: Success and positive outcomes

Taking the time to find the right shop 

Eric didn’t want just to purchase the first shop for sale that came across his path, “You can’t rush or predetermine anything. If the shop you are evaluating is not a good candidate, then you have to walk away,” said Eric. During his patient search, Eric found that he very much enjoyed the process of evaluating prospective shops and identifying if they were a good potential candidate to achieve his business goals. 

A dedicated, expert team

From our conversation with Eric, it is clear that he values his team, which stayed on through the change of ownership when he purchased the shop. “I have been consistently impressed and proud of my team's dedication and technical expertise. During the transition of ownership, they did not allow the uncertainty of the situation to impact the quality of their work,” said Eric. Having the right people in place is critical to a successful shop. “I was so lucky to purchase a shop with such a solid existing team.”

The Bad: Challenges and setbacks

A small team naturally results in staffing issues

Eric credits his team with minimizing the level of operational challenges he faced as a first-time shop owner: “Thankfully, I had a great core team when I took over the shop. Without them, the transition would have been much more difficult. You are only as good as your team.”

Though his team is awesome, he quickly discovered that his most significant operational challenge would be staffing: “As a smaller shop, the risk is in quality manpower. If we have a guy out or are operating a guy short, it adds additional strain to the rest of the team.”

The Unexpected: The things that caught Eric off guard 

Time is incredibly precious, and everyone wants a piece of it

“As a shop owner, you have to be careful about your time,” says Eric, “and one of the biggest surprises I encountered was the number of unsolicited calls from random companies trying to sell or sign me up for something.” 

There is a ton of paperwork.

“I did not realize how much paperwork would come with purchasing and owning a shop,” said Eric, “There is a lot!” 

Tips from Eric for anyone interested in purchasing an existing auto shop 

First things first 

Before jumping into the deep end of purchasing a shop, Eric recommends you consider the following first:

  • Be very honest with yourself regarding your goals. Do you want to work in the shop? Be more hands-off? Etc.
  • Be willing to walk away from a bad deal. Don't get attached to any one shop/location. If the numbers don't make sense, don't move forward.
  • Ensure you have enough operating cash. You must have enough cash to handle normal ebbs and flows and an emergency. Not having enough cash is the fastest way to run into problems. (Eric likes to have at least three months of overhead.)
  • Be very thoughtful about overhead. You have to ensure that each overhead line item has a specific and defined purpose. 
  • Take training in basic financial acumen. To be set up for success when starting the journey of purchasing a shop, Eric advises aspiring shop owners to have a strong understanding of business finances such as P&Ls, pricing strategies, and cash flows to evaluate the shop's health. This is important so you know whether or not you should walk away from a deal. If necessary, Eric encourages taking a financial training course first.

It’s not just about the physical tools and equipment.

When purchasing an existing shop that already had a lot of the necessary physical tools and equipment, Eric focused on the software he wanted to implement. He encourages shop owners to evaluate the current software and make necessary changes early in their ownership journey. 

Choose software that drives efficiency and organization and is user-friendly for employees. Also, select software that enhances customer engagement and provides a positive experience.

“Generally, you must streamline your operations and communicate effectively with customers. We use Tekmetric as our shop management software for efficient workflow and customer communication. It also integrates with software such as PartsTech, which allows us to quickly source, price, and order parts from multiple vendors. This efficiency helps our small shop operate as lean as possible, speeding up vehicle repairs.”

Put a big focus on building trust with customers

One of the big reasons Eric wanted to upgrade the shop's software when he purchased it was to have better tools to help build customer trust. “We transitioned to Tekmetric from an older legacy program that made communicating via text/electronically almost impossible. We get consistent customer feedback that they like our new system and communication method with our ability to send inspections, images, videos, estimates, and invoices digitally.”

Closing

Purchasing an auto repair shop is a significant step that requires careful planning, honesty about your goals, and a strong understanding of the business's financial and operational aspects. 

As Eric's journey demonstrates, having the right team, investing in efficient software, and being prepared for unexpected challenges are crucial for success. If you're considering this path, take the time to evaluate your options thoroughly, seek out the necessary training, and build a solid foundation for your new venture. With dedication and the right approach, owning an auto repair shop can be an incredibly rewarding experience.

Introduction

Starting a tire shop is an exciting and profitable venture, but success isn’t just about getting customers through the door—you need the right tools and equipment to provide top-quality service. Whether you're performing tire repair, wheel balancing, or alignments, investing in high-quality automotive equipment ensures efficiency, safety, and customer satisfaction.

Many new shop owners make the mistake of cutting corners when purchasing tools, only to realize later that low-quality equipment leads to slower turnaround times, safety hazards, and costly mistakes.

By the end of this guide, you’ll know exactly what’s needed to run a successful, efficient, and profitable tire shop.

Infographic showing the tools and equipment needed to start a tire shop.

Tire shop equipment list

Beyond hand tools, your tire shop needs specialized equipment to handle tire mounting, balancing, and alignment efficiently. Here are the nine must-have machines every professional shop needs:

1. Tire changer

A tire changer is the core machine of any tire shop, allowing fast and damage-free tire mounting and removal. A high-quality automatic tire changer saves time, protects expensive alloy wheels, and enables your shop to handle a higher volume of customers efficiently.

Tire changers come in a few variations to accommodate for different tire sizes and needs. When you are ready to make a purchase, consider the price, time to train your technicians, energy usage and return on investment. Here are some of the popular choices:

  • Swing Arm: Affordable and easy to use, the swing arm tire changer is a popular choice. They are appropriate for tires up to 50 inches in diameter. The only drawback is you have to reset the head position every time you change tire sizes.
  • Tilt-Back: If you are looking for a faster option, the tilt-back may be the right choice for you. They can adjust to varying tire sizes much easier that a swing arm but they typically cost more.
  • Leverless: Leverless tire changers provide the most automated experience but also come at a premium price point. This tool can be exceptionally helpful if your technicians deal with larger truck tires or if you want to reduce the risk of employee injuries.
  • Heavy-Duty: Handling up to 90in diameter tires, this tool will be your best friend if you work on construction or heavy duty vehicles regularly. They have a high price point but it will be justifiable if you service enough large tires.

2. Wheel balancer

A wheel balancer ensures perfectly balanced tires, preventing vibrations and uneven tread wear. Investing in a wheel balancer for your auto repair shop helps you achieve precise results, improving customer satisfaction, and reducing comeback work. Wheel balancers come in a few variations:

  • Dynamic balancers: Using more advanced technology, dynamic balancers spin the tire to assess any variations in the tire. Once the tire is assessed, the technician can make any necessary adjustments to ensure a smooth and comfortable ride. These machines tend to be more precise but also come with a bigger price tag.
  • Static balancers: Static machines use a more basic measurement technology to balance tires. The basic idea is that gravity will pull the heaviest part of the tire downwards as the tire is suspended on the machine. They tend to be cheaper and take up less space but because they are stationary, the readings can be less accurate than dynamic balancers.
  • Bubble balancers: Bubble balancers are ideal for shops looking to save money or smaller operations that don’t service tires as often. They work by using a bubble level to check for imbalances in the tire. These machines are less reliable but they are also cheaper and take up less space.

3. Alignment machine

Alignment machines are critical to any tire repair shop because misaligned wheels can cause uneven tire wear and poor handling. A high-tech alignment machine allows your shop to offer wheel alignment services, a high-profit service that improves customer retention. Alignment machines are expensive, ranging from $10,000 to $40,000 but can provide years of service that often justify the upfront cost.

Proper tire alignment leads to improved handling, fuel efficiency, tire life, and safety. All of these benefits help your customers get the most out of their new tires which leads to better customer loyalty.

4. Inflation equipment

Many of your shop’s tools, including impact wrenches and bead seaters, rely on compressed air. A large-capacity air compressor ensures consistent air supply, keeping your operations running smoothly.

  • Air compressor: Air compressors provide the necessary air for many of your power tools and machines. They are also the key to proper tire inflation to make sure your tires leave the shop with the right PSI. Remember to have the right adapters needed to connect to the tire valve stem.
  • Tire inflators: If you are servicing enough tire volume, you may want to invest in dedicated tire inflators. They often include pressure gauges and make it a little easier than using a regular air compressor.

5. Tire inventory and storage

Finding the right balance between having enough tires in stock and crowding your shop layout can be challenging. To maximize efficiency, keep track of which tires you sell the most of and reduce inventory of seasonal tires that you only need once a year.

Heavy-duty tire storage racks allow you to store new and used tires efficiently. If your customers can see your inventory, make sure it is organized and professional looking. Lastly, ask your technicians for feedback and how you can help them be more efficient by adjusting your layout or inventory.

6. Vehicle lifts

A car lift makes tire rotations, inspections, and alignments easier and faster for your technicians. While they are expensive, they can be used for tire repairs as well as general automotive repairs. There are multiple types of lifts on the market so make sure to find the lift that works best for your shop. Consider price, size, lift speed, lift height, and load capacity.

Jack stands may be a cheaper alternative if you have a smaller budget to work with and don’t service a large volume of tires. However, they ares slower to use and may reduce effieiciencies in your shop workflow.

7. Tire repair tools

Some customers will just be looking for a quick patch or repair on their tire. Make sure you have patch and plug kits readily available so you can win easy business.

8. Tire shop software

Your tire shop isn’t just about changing tires—you need to track inventory, invoices, and customer records. A modern workstation with tire shop management software (like Tekmetric) keeps operations organized, efficient, and profitable.

9. Miscellaneous items

  • Waiting area: Make a good first impression by offering a comfortable waiting area with chairs, TV, and basic refreshments. Keep the climate at a comfortable temperature to make sure your customers feel at ease.
  • Marketing: Tekmetric makes it easy to market your business with modern marketing and CRM capabilities. Let us build your website and provide integrated online appointment scheduling to make it easy for customers to find you and book with you.
  • Point of sale (POS) software: Tekmetric has you covered with payment options and solutions for your customers. Provide customers with multiple ways to pay plus financing options.

Essential tools for your tire shop

Even with high-tech machinery, manual tools are essential for precise tire work. These tools allow your technicians to handle tire mounting, balancing, and repairs efficiently and safely. Here are the nine tools every tire shop needs:

1. Tire irons & pry bars

These are critical for manually mounting and demounting tires. Even with a tire changer, stubborn tires (such as off-road or low-profile tires) often require extra force. Pry bars and tire irons allow your techs to work efficiently and prevent rim damage.

2. Air impact wrench & torque wrench

Lug nut installation and removal is a daily task in any tire shop. An air impact wrench speeds up this process, while a torque wrench ensures that lug nuts are tightened to manufacturer specifications, preventing over-tightening (which can damage wheel studs) or under-tightening (which can lead to wheel detachment).

3. Bead seater tool

A bead seater blasts a strong burst of air to seat the tire bead onto the wheel, ensuring a secure and leak-free fit. This tool is especially valuable for handling low-profile, oversized, and performance tires, reducing manual effort and increasing efficiency.

4. Valve stem tools

Valve stems regulate tire pressure, and a valve stem tool kit allows for quick replacements and repairs. Properly maintaining valve stems prevents slow leaks and customer complaints, improving the overall quality of service.

5. TPMS tools

A tire pressure monitoring systems (TPMS) is an electronic system designed to monitor the air pressure inside pneumatic tires on various types of vehicles. Having the right tool can help you make sure a customers TPMS light doesn’t come on after they leave your shop. These tools can do light resets and reprogram tire positions when necessary.

6. Tire pressure gauge & inflator

Proper tire pressure improves fuel efficiency, tire lifespan, and vehicle safety. A high-quality tire pressure gauge ensures accurate readings, while an inflator allows quick and precise air adjustments, reducing customer wait times.

7. Tire repair kit

Not all punctured tires need to be replaced—some can be repaired! A tire repair kit with patches, plugs, and rubber cement lets you fix minor punctures, offering customers a cost-effective alternative to tire replacement while increasing your shop’s revenue.

8. Breaker bar

Sometimes, lug nuts are too tight for an impact wrench due to rust or excessive torque. A breaker bar provides extra leverage, making it easier to remove stuck lug nuts without damaging wheel components.

9. Wheel weight hammer & adhesive weights

Proper wheel balancing ensures a smooth ride and even tire wear. A wheel weight hammer allows your techs to install or remove clip-on weights, while adhesive weights are ideal for balancing modern alloy wheels.

Conclusion

Setting up a successful tire shop requires more than just skills—you need the right tools and equipment. If the startup cost is daunting, consider leveraging vendor/supplier relationships to help with the cost. Or, leverage a line of credit from Tekmetric Payments. By investing in high-quality tire changers, wheel balancers, and shop management software, you’ll improve efficiency, customer satisfaction, and long-term profitability. You can learn more about Tekmetric's tire shop software here.

Essential Tools & Equipment to Start a Tire Shop (Complete List)

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Considered the “gold standard” in security compliance, this certification is awarded in accordance with the American Institute of Certified Public Accountants (AICPA) standards for SOC for Service Organizations, also known as SSAE 18.

As one of the first auto repair shop management systems to achieve SOC 2 compliance, Tekmetric is well-positioned to continue safeguarding sensitive information for both auto repair shops and their valued customers.

Tekmetric Achieves SOC 2 Compliance, Gold Standard in Security Compliance

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