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Auto repair shops generally calculate the cost of their repairs with numerous factors that contribute to the entire process. 

This includes the cost of parts and any necessary upcharges for the shop to generate a profit, as well as the cost of labor.

In this guide, we will help your independent auto repair shop learn how to maximize your profit margin specifically on your shop's labor rate.

Want to learn more? Check out our latest Auto Repair Industry Index! We cover everything from overall industry health to unique shop settings for Tekmetric users to get the most value out of the work they already do!

When it comes to efficiency in an auto repair shop, a technician’s expertise and performance are paramount. The service advisor might be the face who interacts directly with vehicle owners, but technicians are the eyes and ears – the “pistons” – that run the whole system. As a technician, your ability to complete your day-to-day jobs efficiently and effectively is crucial to the shop’s overall performance.

Using data can help you maximize your own profitability as well as the shop’s. From identifying the problem to performing the diagnosis and completing the repair, data can significantly elevate your performance. Simply put, when you accurately and comprehensively leverage the data available through a system like Tekmetric at every step of a repair, you are going to perform more efficiently – to the benefit of the shop and your own career.

Concern: Ensure accuracy with data to identify the problem

When a vehicle is brought in with an initial concern, data can help you better respond to the customer’s needs communicated by the service advisor. By intentionally reviewing the data collected by the service advisor, you can better understand the reason the customer has brought the vehicle in for repair and ensure your diagnosis can uncover the true cause of the problem.

With Tekmetric, your job board and all the data it includes is your key to success. In fact, you can consider it your “digital clipboard,” as it includes all the details you need in one place. The job board shows approved estimates as well as completed work – so it’s your window into how efficiently you are addressing customer concerns, bottlenecks in the repair process and more. This tool enables you to follow up on questions or additional details so your service advisor can communicate with the customer. This in turn drives efficiency within the shop as you can ensure the customer’s concern is addressed promptly and correctly.

‍Cause: Utilize digital tools to make the correct diagnosis

Once a problem has been identified, you can also leverage data via digital vehicle inspections (DVIs) to document diagnoses and show the exact cause of the problem. This includes making thorough notes, including photos and videos and showcasing other issues you find that could need additional repairs. By leveraging digital tools to complete thorough inspections, you can become a diagnostic wizard, solving problems faster and more efficiently. This not only translates to happier customers who get their cars back sooner, but also lets you sell more work, boosting your productivity and earning potential.

The most important part of the digital vehicle inspection is clear photos and videos. By including the right number of photos in your inspection, you can educate your customer on their vehicle’s performance. However, be sure not to overwhelm the customer with information. Tekmetric has found that 6-8 photos on average is the sweet spot, although this may change with your customer base. 

A detailed DVI complete with photos allows the customer to review and approve the jobs they need the most, while planning for repairs that may come up in the future. As a result, you can educate the customer on the cause of their concern, share additional details if needed and simplify the communication process for you and the service advisor – ultimately increasing the average repair order (ARO).

Correction: Control the tempo of the shop’s workflow during repairs

Now that you have identified the problem, it’s time to complete the repair. As you work through your repair list, you can also use key metrics and information available on your job board to ensure you – and the shop overall – are working efficiently. For example, you can follow up with your service advisor on jobs you have inspected but are not approved for repairs. This helps drive the shop’s efficiency, so you can complete the work and get the car out of the shop to move onto the next one.

The other important aspect of the repair phase is collaborating with other technicians to better leverage each technician’s unique strengths and weaknesses. For example, if your specialty is brake replacements, you can work with your team to ensure you work on brake-related repairs. This helps streamline those repairs to you – the expert – so you can complete them faster and at a higher quality. In turn, the shop streamlines its overall processes, leading to more profit for the shop and for you.

Technicians are a critical part of a shop’s operations – but your role is not just limited to the actual repair. You can become even better in your role by using data throughout the customer experience: from the initial problem and diagnosis until the customer walks out with a fixed vehicle. In fact, utilizing data from the minute the customer walks into the shop leads to better diagnoses and more successful repairs. Learning how to use data correctly can help you perform at a higher level, ultimately increasing the profitability of the shop and growing your own paycheck.

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By streamlining your auto repair shop workflow, you can help your shop create a memorable customer experience that will keep them coming back next time they have a problem.

From the moment customers walk in the door to when they pick up their vehicle, your shop’s service advisors play a crucial role in creating a smooth, enjoyable experience.

Shop management software makes it easy to establish a standardized intake process so that shops can provide the same level of care to their customers every single time.

Service advisors can build repair orders in seconds, apply the right digital vehicle inspection templates with just a few clicks, and quickly text or email the results to the customer for approval.

This frees up their time to focus on the customer directly, address their concerns, and create a stress-free experience. If things go well the first time, and customers feel like they can trust your shop's recommendations, work they'll more than likely come back for future repairs.