Why Auto Repair Shops Need a Labor Guide to Maximize Revenue

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April 7, 2023

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Read time: 3 min

Your auto repair labor revenue and parts margins are critical for enhancing your shop’s profitability. Adjusting your pricing on parts to make a profit is pretty straightforward.

But when it comes to labor times for auto repair shops…that’s where things can get a bit tricky. 

Yes, you need competitive labor rates, but you also need to keep those rates reasonable so you don’t scare off your customers with sky-high prices. 

3 ways your shop can make more money on labor: 

  1. By using a labor matrix 
  2. By creating custom labor rates 
  3. By applying a labor guide markup 

Before we dive into the differences between these three methods for setting the best labor times at your shop, here’s a quick refresher on the one thing these methods have in common: the labor guide

What is a Labor Guide? 

A labor guide is like the gospel of labor times for auto repair shops. It tells you how long, on average, it takes to complete different types of repair work.

Remember that the times listed in auto repair labor guides are averages, so it’s best to treat them as a starting point.

Factors That Can Affect Labor Times for Auto Repair Shops 

Let’s take a look at some of the factors to consider when determining how much to mark up (or mark down) your shop’s labor rates. 

1. Age of Vehicle

Older vehicles are often trickier to fix, especially because finding parts for them can require a time-consuming hunt across parts suppliers. You can make up for the time spent hunting down uncommon parts by charging more for all repairs involving vehicles over a certain age. 

2. Geographic Location

Some areas lead to different types of repair challenges that can affect the time it takes for repairs.

For example, shops in Syracuse, New York—the snowiest city in America—might find themselves working with cars that have rust, which can significantly add to the time it takes to remove or even clean certain parts. 

3. Experience of Technician

Chances are, you’re already paying experienced technicians a higher base salary or hourly rate.

However, certain situations might call for cranking up those numbers, like if you really need to put their skills to the test for a tricky repair for a client who wants it done ASAP. 

4. Customer Needs

You can offer customers who need their cars back fast a “Pro Tech” rate, where your tech wraps up the job in record time.

When you’re asking techs to complete a job faster than the time on the labor guide, and still do a good job, the customer is getting special service. Be sure to let customers know that speediness comes with a surcharge. 

5. Relationship with Customers

It’s a good idea to consider giving loyal customers a special rate as a token of appreciation.

With that said, industry leaders advise sticking to your labor rates as much as possible, because if it becomes a habit, you risk financially harming your business. 

How to Choose a Reliable Labor Guide 

A reliable auto repair labor guide is foundational for your shop when you’re setting labor rates, so you’ll want to use a labor guide that stays up-to-date with the latest labor times in the industry.

Just like many people use online directories instead of the Yellow Pages, many auto repair shops use digital labor guides that are constantly updated with the latest labor times. 

When seeking out a digital labor guide, look for one that: 

  • Offers consistent, comprehensive data on labor times from industry leaders, so you can set accurate labor rates that will keep your shop profitable 
  • Adds labor times for new vehicles and jobs periodically, so your shop’s pricing can stay competitive 
  • Integrates with your auto repair shop management software, so you don’t have to dig through multiple systems
👉 Ready to grow your automotive business? [Book a personalized Tekmetric Demo Here]

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We’re excited to announce that Tekmetric now supports the new Nexpart Multi-Seller integration! This new integration gives Tekmetric customers one-click access to your entire supply chain. Now it’s easier than ever to build detailed estimates and find the right parts & tires from ALL of your suppliers on ONE screen.

The Largest Parts Network in The Industry

For over 25 years Nexpart has been the industry leader in parts cataloging and electronic ordering. Nexpart has built long standing relationships with over 53,000 parts suppliers. In recent years Nexpart released Multi-Seller, an all-in-one ordering system that gives you a bird’s eye view of your entire supply chain.

With Nexpart Multi-Seller you’ll gain access to more suppliers in more places backed by the most comprehensive parts catalog in the industry. Find the right parts for the job fast with real-time inventory and wholesale pricing.

 

Now Available: 50+ Tire Suppliers For FREE

Need tires? Nexpart Multi-Seller now connects you to over 50 national tire suppliers for FREE. Access big names like ATD, NTW, Tire Rack Wholesale and more all in ONE click!

If your shop is equipped for tire services, it’s now easier than ever to make strong recommendations for any budget and keep your customers in house. With parts & tires plugged directly into Tekmetric, you can add a set of tires to an estimate in seconds. If the customer isn’t quite ready to pull the trigger on a set of tires, simply save the quote in Tekmetric. Boost ARO, and get more ROI out of your tire equipment.

Build Strong Workflows & Stronger Estimates

Tekmetric enables you to create accurate estimates and get approvals faster which saves you time, boosts productivity, and builds customer trust. Keep your repair jobs moving without delays thanks to real-time inventory tracking, immediate access to part availability during job setup, and integrated parts ordering, now with Nexpart  Multi-Seller. With Tekmetric, you can effortlessly monitor all repair jobs and the inventory assets assigned to every vehicle, and if a part isn't available, quickly browse your shop inventory for a swap or order a replacement through Nexpart Multi-Seller, all within a single intuitive program.

Earn Multi-Seller Rewards On Every Parts Order

As an additional benefit, Nexpart Multi-Seller customers earn rewards points on every parts order*. Every $1 spent on parts earns 1 Rewards Point. Multi-Seller shops can redeem points for up to $500/Year in eBay Gift Cards.


*Available to all US and Canadian Nexpart Multi-Seller users. Tire purchases not currently eligible for Rewards. Learn more and see the full terms and conditions.

How To Get Started in Tekmetric

  1. Click the Shop Settings section on the bottom left menu bar.
  2. Click the Integrations tab.
  3. Click Manage from the Nexpart Multi-Seller integration box.
  4. Add your Nexpart Multi-Seller Username and Password.
  5. For detailed instructions on how to order parts view this video

To learn more about Tekmetric or book a demo, visit https://info.tekmetric.com/nexpart or call 832-787-0900

To learn more about Nexpart Multi-Seller, you can get started and create a free account at www.nexpart.com

Looking for a full walkthrough? Need help setting up your vendors? Schedule an onboarding appointment with a Nexpart Rep.

Supercharge Your Supply Chain With Nexpart Multi-Seller

August 26, 2025

Read time: 3 min

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If you've been running your shop on paper repair orders, a whiteboard, or a mix of disconnected tools, you've probably wondered about shop management software. You’ve also likely questioned what it does and whether it's worth the cost and the disruption of switching to a digital system. 

This blog post answers both questions directly with a clear explanation of what auto repair shop management software is, how it works in a real shop, and the signs it might be time to look at one.

What Is Auto Repair Shop Management Software?

Auto repair shop management software is a platform that connects the core workflows of your shop — from writing estimates to completing repairs to collecting payment — in one place. Instead of tracking jobs on paper, managing parts in spreadsheets, and texting customers from your personal phone, everything lives in a single system your whole team can access.

At its core, it's a connected digital workflow for every repair, from the moment a car pulls in to the moment it pulls out.

📋 Quick Definition
Shop Management Software (SMS):
Also called a shop management system, is a digital platform that handles the operational and customer-facing workflows of an auto repair shop: repair orders, estimates, digital vehicle inspections, parts ordering, customer communication, invoicing, and reporting. Cloud-based platforms like Tekmetric can be accessed from any device without on-site servers.

A Step-by-Step Guide of What It Does

The easiest way to understand shop management software is to follow a repair from start to finish and see what the platform touches at each step.

1. Customer Arrives: Write-up and Scheduling

When a vehicle comes in, the service adviser opens a new repair order (RO) directly in the software. Customer info, vehicle history, and previous service notes are already there. There’s no need to search through masses of paper, and no digging through filing cabinets.

2. Technician Inspection: Digital vehicle inspection (DVI)

The tech completes a DVI on a tablet or mobile device, adding photos and videos of anything that needs attention. The results are automatically attached to the repair order and can be sent directly to the customer by text before the service adviser even picks up the phone.

This is one of the biggest workflow shifts shop owners find most beneficial. Customers can review inspection results, see pictures of the issue, and approve or decline work from their phone with no callbacks.

💬 From a Tekmetric customer
"The text feature is a huge hit — customers can review inspection results, check estimates, and approve repairs with just a click. The system is really streamlined and everything is integrated, making our workflow way smoother than before."
- Verified Tekmetric Customer, G2 

3. Estimate Building and Approval

Once the DVI is complete, the service adviser builds an estimate inside the same system. Parts prices, labor rates, and canned jobs are already set up so advisers aren't manually pricing every line. The estimate flows directly into the repair order once the customer approves.

4. Parts Ordering

Parts ordering happens inside the platform, too. Service advisers can submit orders to their suppliers directly from the repair order, track delivery status, and receive parts against open jobs without leaving the system.

5. Work is Performed and Technicians Stay on Track

The tech board gives service advisers and managers a real-time view of every job in the shop: what's waiting, what's in progress, and what's ready. Techs can update job status from their own device, which keeps the whole team on the same page without walking back and forth to the front desk.

6. Invoice and Payment

When the job is complete, the repair order becomes an invoice. Payment can be collected at the counter, sent by text, or processed through a payment link — depending on how the shop is set up.

7. Customer History

Every completed repair, every declined service, every inspection — it's all stored in the customer's profile. Next time they come in, the service adviser already knows what was done, what was deferred, and what's coming up. That's how you build trust and bring customers back.

What Does It Replace?

Most shops that switch to a management platform are replacing one or more of the following:

  • Paper repair orders and handwritten estimates
  • Printed or whiteboard job boards
  • Phone calls and personal texts for customer communication
  • Spreadsheets for parts inventory and pricing
  • Separate software tools for inspections, scheduling, and invoicing that don't talk to each other
💬 From a Tekmetric customer
"We were originally running our shop with two systems; one was for digital inspection and the other was our shop management system. ... I was spending $1,000 a month between the software companies and the IT support. And if the internet connection blipped for a split second, my digital inspection went down for about an hour. Now I'm paying a fraction of what I was before. … We saved a bunch of money, and the estimate writing process is much faster because the labor guide is built into the system."
- Stephane Grabina, Excluservice, Tekmetric Customer  

Signs Your Shop Needs a Digital Shop Management System 

You don't need to be a high-volume shop to benefit from management software. Here are the signals that tell you it's worth a closer look:

  • You're writing the same information down in multiple places such as a paper RO, whiteboard, or a text to the customer
  • Technicians are walking to the front desk to ask questions that should already be in the job
  • You can't tell at a glance how many cars are in progress or where each one stands
  • Customers call asking for updates that your team has to scramble to find
  • You're leaving declined work in your head instead of a system and losing follow-up opportunities
  • Your end-of-day reporting comes from memory or a calculator

None of these are signs of a poorly run shop. They're signs of a shop that has outgrown what paper and disconnected tools can do.

Do You Actually Need It?

If your shop is processing more than a handful of cars a day, the answer is yes. 

The goal of shop management software isn't to add another system to manage. It's to replace the friction in your current process — the paper, the callbacks, the manual pricing, the jobs that fall through the cracks — with one workflow your whole team can use.

"It integrates every aspect of running our shop — from scheduling appointments and messaging customers to integrating payments and sending invoices." - Gigi Collier, G2 Review, Tekmetric Customer 

📌 Bottom Line
Auto repair shop management software connects your repair orders, inspections, parts, customer communication, and reporting in one place. It replaces the paper and disconnected tools most shops are running on today and gives you the visibility to run your business with more confidence and less noise.

What to Look For in a Shop Management Platform

Not all platforms are built the same. The best ones don't just digitize each task — they connect them, so information moves from one step to the next without anyone rekeying it.

Repair order and estimate workflow
The platform should make it fast to write up a job, build an estimate, and convert it to a repair order without re-entering anything. Look for built-in labor guides and canned jobs so your team isn't pricing from scratch every time. On Tekmetric, estimates flow straight into the repair order, and labor and parts matrices keep pricing accurate and margins protected.

Digital vehicle inspections (DVI)
DVIs are one of the highest-impact features in any shop management platform. When technicians attach photos and videos and customers approve work from their phones, authorization rates climb and comebacks drop. The lift is measurable: shops on Tekmetric average $612 per repair order, rising to $741 once digital vehicle inspections are in use. Customers approve more work when they can see exactly what their vehicle needs.

Parts ordering and inventory
Look for parts ordering built into the repair order, so your team submits orders without leaving the job or logging into a separate portal. Tekmetric connects to more than 70 integrations, including the parts suppliers most shops already use, and inventory tracking helps prevent shortages while protecting your parts margin.

Customer communication
Two-way texting, digital estimates, and automated follow-ups should be built in, not bolted on through a third-party tool. Every extra place your team has to go to reach a customer is another place things fall through the cracks. Tekmetric keeps it in one platform: text a customer, send an estimate, and follow up on a declined service from the same screen.

Reporting and visibility
A strong platform gives you a live view of what's happening in your shop right now — car count, technician productivity, average repair order — without pulling a report or doing the math. Tekmetric's real-time reporting puts those numbers in front of you as the day unfolds, so you can coach your team and clear bottlenecks while it still matters, instead of finding out next week.

Cloud-based access
Cloud-based platforms don't need an on-site server to maintain or replace, they back up your data automatically, and they let you log in from anywhere — the shop, home, or the road. Shop owners on Tekmetric point to exactly this: no server to buy and swap out every few years, and the freedom to work from any terminal at any location. It matters more than most owners realize until the day they need it.

See How Tekmetric Works

Tekmetric is the shop management platform built for independent auto repair shops. Repair orders, digital inspections, parts ordering, payments, and real-time reporting all run in one system, on any device. There are no servers and no syncing between tools that don't talk to each other and one login for the whole team.

It was built by someone who lived through the problem. Founder and CEO Sunil Patel ran his own shop and built Tekmetric to clear the friction he hit every day. More than 15,000 shops now run on it, connected to more than 70 integrations for the parts suppliers, labor guides, and accounting tools they already use.

What Changes When the Workflow Connects

When inspections go digital, customers see exactly what their vehicle needs — photos, videos, and clear findings in a single message. When they understand the work, they approve more of it. The results track it: Tekmetric shops average $612 per repair order. With digital vehicle inspections in use, that average rises to $741. Add MotoVisuals educational videos, and it reaches around $800. It’s the same honest work, but more of it is approved because customers understand what they're paying for.

That's the pattern across the platform. Faster turnaround from check-in to checkout. More cars through the bays. A customer experience that earns repeat visits. The friction falls away, and shops run on results instead of guesswork.

💬 From a Tekmetric customer
"The amount of information that is available to the front desk, the service adviser, and the technician at a glance is very impressive, and the functionality of it together is great."
— Moises M., Guest Service Representative, G2 Reviews, Tekmetric Customer

Safeguarding the physical and digital confidential assets of your business is of utmost importance for any repair shop owner. However, figuring out the right steps to initiate this process can be challenging.

The Importance of Security

Shop owners must always know who is coming in and out of their shops, this can be monitored by alarms and security camera systems throughout and around the building to insure the physical protection of the digital systems within the shop.

For those who are working in the shop, they should be trained on the protection of proprietary data within the shop by implementing password management, data integrity, and regular system backups.

Finding the Right Tools for the Job

Choosing a shop management system such as Tekmetric can help you manage your shop more efficiently, automate your processes and improve your overall customer communications while keeping your data secure and protected.

Shop management systems have proven to be beneficial for protecting data in the case of natural disasters or fires. When you are looking for a shop management system to protect your data be sure to choose the system that is transparent regarding their systems data backup process and insurance in the event of a breach. ‍

Switching to the Cloud

Deciding to make the switch to cloud-based systems for data storage and accessibility such as Tekmetric can give shop employees and owners peace of mind knowing that their digital confidential assets are safe and secure.

Training and empowering employees on how to protect digital information is equally as important as physically protecting your shop with security alarms, cameras and locks.

By implementing the right processes and tools, shop owners and their employees can be confident that their shop's data is secure, accessible and protected from unexpected crises. 

For more information, view our data security checklist here

The Ultimate Auto-Repair Data Security Checklist

October 20, 2023

Read time: 3 min

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