Eliminate Bottlenecks and Grow Your Average Repair Order

One multi-shop operator switched to Tekmetric and doubled monthly revenue in two years. He shared how in a recent Tekmetric and PartsTech webinar.

Auto repair shops are under more pressure than ever. Tighter margins, a technician shortage, and customers who expect speed, transparency, and a frictionless experience are common challenges. Many shops still run on disconnected systems and manual workarounds, leading to bottlenecks that waste time, stall revenue, and limit growth.

A recent ShopOwner webinar sponsored by Tekmetric focused on the concept of the connected shop. This article explores what a connected shop workflow looks like, how one multi-shop operator doubled monthly revenue after switching to Tekmetric, where operational bottlenecks often occur in the estimating process, and how features like SmartJobs, parts and labor matrices, and good/better/best estimates can increase your average repair order (ARO) without adding headcount.

What a Connected Shop Actually Means

A connected shop is not just about having software, but about having the right systems integrated and used effectively by the team. John Phelps, director of channel partnerships at Tekmetric, emphasized that technology must be leveraged properly to be effective. When estimates, parts ordering, inspections, payments, and customer communication are connected into a single workflow, technology becomes a growth engine.

Tekmetric is designed for this purpose, offering over 70 integrations, built-in digital vehicle inspections (DVIs), real-time reporting, and a native mobile app for technicians and service advisors. Every step of the repair order (RO) process flows seamlessly, reducing friction, duplication, and data loss.

One Shop Owner Doubled Monthly Revenue After Switching to Tekmetric

Tim Lanier, president and CEO of Lanier Auto Group, operated a single shop that couldn't break through a certain monthly revenue level. After switching to Tekmetric in March 2020, his shop's monthly revenue doubled from about $200,000 to $400,000 in two years. This growth was attributed to a connected workflow that unified parts ordering, DVIs, payments, accounting, marketing, and inventory into one platform.

The Estimating Bottleneck Is Costing Your Shop More Than You Think

Lanier identified the estimating process as the biggest operational bottleneck. Some tickets could take 30 minutes to an hour to find all necessary parts for big jobs. His solution was to empower technicians with computers at their bays, allowing them to use Tekmetric and PartsTech to quickly identify and add parts to tickets. As a result, estimates arrive at the service advisor about 90% complete, reducing back-and-forth and speeding up the process.

Tekmetric's integration with PartsTech enables technicians to search multiple suppliers, confirm part specifications, and add items to ROs without leaving the platform, compressing what once took an hour into minutes.

Pricing Consistency Drives ARO Growth

Consistency in pricing is a key driver of ARO growth. Inconsistent estimates can erode customer trust and cost shops money. Tekmetric addresses this with parts and labor matrices that ensure every estimate reflects the shop's actual margins. SmartJobs, Tekmetric's canned job system, pre-populates parts, labor, and job notes for common services, ensuring consistency across all ROs.

How to Present Good, Better, Best Estimates Without Starting From Scratch

Providing customers with options is both good service and good business. Tekmetric allows shops to build good/better/best estimate structures efficiently. Shops can duplicate base estimates, add parts or labor for each tier, and text all options to the customer. Declined or unchecked options are excluded from close ratio reporting, so advisors aren't penalized for presenting choices. This approach leads to higher approval rates and stronger customer relationships.

Tekmetric Is Built to Scale With Your Shop

Lanier's expansion from one to four rooftops was made possible by replicable systems and processes. Tekmetric supports this growth by providing real-time visibility into performance metrics across all locations, such as ARO, technician efficiency, and close ratio, without extra steps to pull data.

The connected shop is already a reality for some, and Tekmetric is designed to support shops of any size in achieving this standard.

FAQ

The Connected Shop

A connected shop integrates all systems and workflows, reducing bottlenecks and enabling growth.

Easier Estimates

Empowering technicians with the right tools streamlines the estimating process and reduces delays.

Consistency is King

Consistent pricing and processes build trust and drive higher average repair orders.

Give Customers Options

Presenting good/better/best estimates increases approval rates and customer satisfaction.

How to Start an Auto Repair Shop (9 Step Guide)

Starting a mechanic shop can be rewarding, but requires careful planning and execution. Here are the key steps:

1. Form a Business Plan

• ​Write an executive summary
• ​Describe your shop
• ​State your business goals
• ​Describe your products and services
• ​Conduct market research
• ​Outline your marketing and sales plan
• ​Perform a business financial analysis
• ​Make financial projections
• ​Create a plan for growth and expansion

Identify your niche to attract the right customers and stand out in the market.

2. Legal Entity Setup

Choose the right business structure (LLC, sole proprietorship, corporation) for tax, liability, and operational reasons. Register your business name and obtain an EIN from the IRS.

3. Start Up Funding

Startup costs can be significant. Explore SBA loans, equipment financing, credit lines, or investors. A clear business plan is essential for securing funding.

4. Pick Your Location

Choose a high-visibility location with proper zoning, infrastructure, and room for future expansion.

5. Permits and Licenses

Secure all necessary licenses and permits, which may include:

• ​General business license
• ​Zoning and occupancy permits
• ​Environmental or hazardous waste certifications
• ​Auto repair facility permits

Check local requirements to ensure compliance.

6. Business Bank Account

Set up a dedicated business bank account to separate personal and business finances, simplify accounting, and build business credit.

7. Business Insurance

Carry general liability insurance and consider additional coverage such as:

• ​Garage keepers insurance
• ​Workers’ comp
• ​Tools and equipment coverage
• ​Commercial property insurance

Consult an insurance professional to determine your needs.

8. Hire Employees

Hire technicians, service advisors, and administrative staff with relevant certifications and strong work ethics. Offer competitive pay and growth opportunities to retain talent.

9. Marketing Your Shop

Develop a marketing strategy that includes:

• ​Website with services, hours, and contact info
• ​Google Business listing
• ​Online reviews
• ​Referral programs
• ​Social media
• ​Email campaigns
• ​SEO
• ​Paid advertising

Invest in local SEO and community outreach to attract customers.

Final Thoughts

Starting a mechanic business requires preparation and determination. With the right skills and planning, you can build a successful auto repair shop that serves your community and provides a rewarding career. Each step you take lays the foundation for your shop’s future success.

Protecting Your Auto Repair Shop from Chargebacks

Chargebacks can impact your business's profitability. To protect your shop:

Always Get Your Guests’ Consent Before Doing Work

Review the repair order with the guest and obtain written or verbal consent for the work and cost. Documenting written consent is preferable.

Shop Tip: Use courtesy inspections and shop management systems to guide the approval process and set clear expectations.

Establish a Transparent Relationship with Your Guests

Provide excellent customer service and let guests know they can return with any concerns. This reduces the likelihood of chargebacks.

Shop Tip: Set a clear and easy return policy, and make it visible to guests. Simple policies like “If you’re not satisfied, call us, and we’ll make it right” encourage guests to contact you directly with issues.

By following these practices, you can minimize chargebacks and maintain strong customer relationships.