The Cost of Doing Nothing

As an auto repair shop owner, you know how important accurate labor times are for locking in your profit margin on labor and growing your business. But how do you find a labor guide that you can trust and that works with your shop’s estimate process?

Switching to a newer labor guide can be tough for some shops. Many shop owners already trust their physical, paper labor guide; they’ve been using it for years! But that guide probably doesn’t include labor times for repairs on newer vehicles—not to mention it takes up a lot of space.

Digital auto repair labor guides are becoming standard across the industry because of how accessible they are and how they can be continuously updated with labor times for newer vehicles.

If you’re still using your old labor guide, or even a digital labor guide that isn’t working for you, it might be time to find a labor guide that will better meet the needs of your shop. Here are some key features to look for to narrow down your search.

Chargebacks are something that no shop owner wants to deal with.

Your business relies on big-ticket sales, and chargebacks on those sales can squeeze your margins.

When a guest goes through their bank or credit card company to get a refund, whether it’s because they were unhappy with the repair or not, it can leave shop owners in a bind where they might have to eat the cost of the labor, parts, and profit.

There are some cases where business owners can make a case against the chargeback, but it can be a lengthy process and most banks and credit card companies will side with the cardholder who’s making the complaint.

Protecting your business from chargebacks doesn’t start when the payment is processed, nor does it end with being reimbursed for a single chargeback. The best way to protect your business from chargebacks is to establish clear, open communication with your guests and adhere to a consistent and secure payment process.

Always Get Your Guests’ Consent Before Doing Work

When your service advisors take guests through the repair order, they should listen carefully to what the client wants; service advisors can never be too careful.

If that means spending some extra time to review the repair order with the guest, it’s time well spent.

A little more time spent on the front-end can save you a lot more time on the back-end. Once the RO is thoroughly reviewed, you can get either written or verbal consent for the work and the cost. It’s worth keeping in mind that it’s easier to document written consent.

Using a shop management system like Tekmetric where the guest can see the courtesy inspection and click through and select the work they want and the work they want to put on hold can set clearer guidelines for both the guest and the service advisor.

Establish a Transparent Relationship with Your Guests

Providing excellent customer service is good practice for any auto repair shop, but it also goes a long way toward preventing chargebacks.

Let your guests know that you’re committed and dedicated to fixing their problem, even if that means taking their vehicle back into the shop if the guest is not 100% satisfied.

If you make it clear to your guests that they can come back to you about any concerns, they are far less likely to go to their bank or credit card company first. And it’s better to do a little extra work to ease the mind of your guest than it is to give away an entire repair order for free or go through legal hassles.

If your shop doesn’t already have one, consider establishing a clear and easy return policy and make it visible to guests via signage or with messaging on repair orders.

Simple policies such as “If you’re not satisfied, call us, and we’ll make it right” can go a long way in terms of letting guests know they should go straight to you if there’s something wrong.

The customer experience begins from the time vehicle owners bring in their car all the way to the final touchpoint: the payments portion. Integrated payments meet customers where they are in today’s digital market whether that means they can pay from their home, pick up their vehicle after hours or pay from states away for college students to pick up their car. Beyond approving an estimate and two-way texting, customers can pay wherever they are, whenever it is most convenient for them. Integrated payments facilitate shop efficiency, improve the customer experience and meet customers where they need to be.‍

1. Facilitate shop efficiency

Integrated payments help the shop run more efficiently with a visible, centralized location. Service advisors maximize the shop’s workflow and drive the bottom line because they can complete more repairs due to efficiency. Integrated payments allow customers to pay without being at the shop or needing a physical credit card. Forgot your credit card at home? Not a problem!

Tekmetric’s text- to-pay feature allows your customers to pay anytime, from anywhere - whether they’re a busy professional who needs to pick up after hours or a parent paying for repairs for their college student. Text-to-Pay allows you to get the repair done and be able to pay for it without a major disruption to your daily routine or needing a physical credit card to make a payment.

2. Improve the customer experience 

Along with facilitating shop efficiency, integrated payments streamline the automotive customer experience with a unique opportunity to drive revenue to the shop while also providing a value-added experience to the customer. Customers will remember how convenient (or inconvenient) it was to pay during the final touchpoint of the auto repair process.

In addition to text-to-pay, integrated payments offer flexible, forward-thinking solutions that allow shops to save time and effort when managing funds and customer payments. Shop owners can share invoices and accept payments via text and email, enabling the customer to pay directly from their smartphone and pick up the vehicle when it is convenient for them. 

3. Meet customers where they want to be

Most auto repair purchases are surprise purchases that not even the best budgeter can anticipate. With integrated payments, Tekmetric caters to the customer’s budget and needs. Not the other way around. Repairs can be a stressful experience so why not make the customer’s life easier by allowing them to pay from home, from states away or in installments?

Offering Buy Now, Pay Later options, allows you to meet the customer where they are financially by providing installment payment options. When your customers need to get the repair done but do not have the budget to be able to pay for it in full in one sitting, BNPL meets your customer where they are financially while also ensuring the safety of the vehicle owner by getting the repair done. 

Digital payments are necessary for auto repair shops in the modern digital market. By implementing customer-centric digital solutions, you can significantly improve your shop’s customer experience by meeting customers where they are, reaching new ones and increasing your shop’s workflow efficiency. Making the last touchpoint of the experience more convenient creates a positive, lasting impression on the vehicle owner and creates trust with your repair shop – encouraging them to become a loyal customer and generate repeat business or referrals.