How to Act on Your Tekmetric Shop Index Results
The article advises auto repair shops to focus on the largest performance gap identified by the Tekmetric Shop Index—whether in average repair order (ARO), car count, parts margin, or effective labor rate—by diagnosing root causes such as digital vehicle inspection completion and conversion rates for ARO, and then setting a focused 90-day improvement plan targeting that specific metric to drive meaningful operational changes.
Compare your shop's performance against real data from thousands of auto repair shops by state.
Benchmarking data is only useful when it changes what you do next.
If you've run your shop's numbers through the Tekmetric Shop Index and seen where you rank on ARO, car count, parts margin, and effective labor rate — good. You have a diagnosis. Now you need a plan.
This post walks through what each gap in your TSI results is actually signaling, which operational levers move the needle on each one, and how to build a focused 90-day improvement target that gives your team something concrete to work toward.
Start With the Biggest Gap
Your TSI results will show you four rankings. Resist the temptation to try to improve all four at once. The shops that make the most progress pick the metric with the largest gap and stay focused on it for a full quarter before adding another priority.
Trying to improve ARO, car count, parts margin, and effective labor rate simultaneously often means improving none of them because the operational changes required for each are different and can compete for your team's attention.
So step one is simple: look at your four rankings, find the biggest gap from the industry benchmark, and start there.
Gap: ARO Below Benchmark
If your average repair order is lagging, the most common root cause is inspection performance. Either digital vehicle inspections (DVIs) aren't being completed consistently, or they're being completed but not converted into approved work.
A few questions to answer before you act:
- What percentage of repair orders have a completed DVI attached?
- Of the DVIs sent to customers, what percentage include photos or video?
- What's your close ratio on recommended work?
If DVI completion is below 90%, that's almost always the first lever. Tekmetric's Inspection Report shows completion rates by technician, making it straightforward to identify who needs coaching and who's already performing well.
"Now I can look at everybody at a glance. I can be in a different state, different city and know exactly what's going on in each location all the time." — Leroy Ingram, Ooroo Auto Care, Tekmetric Customer
If DVI completion is strong but close ratio is low, the issue is likely in how inspections are being communicated to customers — photo and video quality, the language in findings, how quickly the estimate follows the inspection.
Shops on Tekmetric also have access to the Parts and Labor Matrix, which protects against underpricing. It can be a quiet ARO killer that doesn't show up until you look at margin data.
Gap: Car Count Below Benchmark
A car count gap can mean two different things depending on how it breaks down: you're not bringing in enough new customers, or your existing customers aren't returning at the rate they should. Both problems need attention, but they need different solutions.
For new customers, the questions are acquisition-focused. Tekmetric's online booking gives customers a way to find you and schedule an appointment 24/7 — filling bays without your team picking up the phone. The more friction you remove from the booking process, the more new customers follow through.
For returning customers, the questions shift to communication. Are declined jobs being followed up? Are customers receiving service reminders? Tekmetric Marketing automates follow-ups on declined work and scheduled maintenance intervals — so your team stays in contact with your car count without adding manual effort.
"Seven hundred and two dollars in ad spend has generated 11 net-new customers and $12,802 in new customer revenue — an 18.3x return on ad spend before factoring in the lifetime value of those customers returning for future visits." — Tanner Markham, Phase 2 Automotive, Tekmetric Customer
Gap: Parts Margin Below Benchmark
A parts margin gap is almost always a pricing problem — either your markup isn't keeping up with cost increases, you're applying flat markup where a tiered matrix would protect margin better, or your team is manually overriding prices inconsistently.
The fix starts with reviewing your Parts Matrix in Tekmetric. A well-structured matrix automatically applies the right markup based on part cost ranges, removing the inconsistency that comes from individual pricing decisions at the job level.
After updating the matrix, run your Parts Purchased Report to verify that retail pricing is reflecting the changes accurately. This is also a good time to cross-reference against recent vendor invoices — if costs have moved significantly in the last 6 months, your matrix thresholds may need updating.
Gap: Effective Labor Rate Below Benchmark
If your effective labor rate is trailing your posted rate, the most common culprits are inconsistent discounting, flat-rate job structures that cap labor recovery, or package pricing that doesn't account for actual labor time.
Start by pulling your Discount Detail Report to see where and how often discounts are being applied. If they're being applied inconsistently across your team, that's a coaching conversation — and Tekmetric's real-time reporting makes it easy to see which service writers are discounting most frequently.
The Labor Matrix is the structural fix. Similar to the parts matrix, a tiered labor matrix adjusts the billed hours or dollar amount based on configured ranges, protecting margin without changing what customers see on the invoice.
Building a 90-Day Improvement Target
Once you've identified your primary gap and the lever that addresses it, the last step is turning it into a measurable target for the next 90 days.
A good 90-day target is specific, tied to a leading indicator, and gives your team something to track week over week. For example:
- ARO gap: Increase DVI completion rate from 72% to 90% over 90 days, tracked weekly via Inspection Report
- Car count gap: Launch declined-job follow-up automation within 30 days; track returning car count monthly for 90 days
- Parts margin gap: Update Parts Matrix for all parts under $150 within two weeks; track parts margin weekly via Parts Purchased Report
- Labor rate gap: Reduce average discount percentage by 15% over 90 days, tracked via Discount Detail Report
These aren't arbitrary numbers — they're examples of the leading-indicator approach that lets you see progress before the outcome metric moves. Set yours based on where you're actually starting, not where you want to end.
Check Your Rankings Quarterly
Your TSI results are a snapshot. Set a reminder to re-run the benchmarking every quarter so you can see whether your numbers are moving relative to the industry — not just relative to your own history.
The shops that use benchmarking most effectively are the ones that treat it as a recurring discipline, not a one-time exercise.
"Thanks to Tekmetric, we've really enhanced our business and are looking to expand. We're the #1 shop, 6 years in a row in Upstate New York." — Chris Chevalier, AAA Auto Repair, Tekmetric Customer
Takeaways
- Start with your biggest gap — don't try to move all four metrics at once.
- ARO gaps usually trace back to DVI completion rates or close ratios.
- Car count gaps split into acquisition and retention problems — each needs a different fix.
- Parts margin gaps are almost always a pricing matrix issue.
- Effective labor rate gaps often come down to discounting habits and job structure.
- A 90-day leading-indicator target turns benchmarking data into team direction.
FAQ
What are canned jobs?
Canned jobs are pre-saved job templates in Tekmetric that include labor and parts associated with common repair work done.
Instead of recreating jobs you perform on a regular basis, shops can create as many canned-jobs as they like to build estimates in just seconds. Just apply the right canned job and you're ready to send for approval.
In fact, shops find canned jobs so helpful, one shop running on Tekmetric has created over 2,000 customer canned jobs, and even uses at least one canned job per RO.
The value of canned jobs is clear: making it easier for repair teams to provide customers with the best of the best.
Simple, efficient, and reliable processes lead to more completed work and happier customers. And as we know, happier customers leads to even more customer retention, and better customer retention increases shop profitability.
In essence, canned jobs can even help you pay for Tekmetric. The profit generated from saving time, closing more repair orders and selling better service can cover the cost of the platform, and then some.
Just why are canned jobs so powerful for your shop? That's easy:
- Make your jobs easier by simplifying your workflows for common repair orders into just a few clicks
- Shorten the time it takes to operate, get estimates built and approved sooner and move cars faster.
- BG Canned Jobs, using BG products in particular, enable your shop to offer more specialized service options for improved vehicle performance
What is an automotive service writer?
A service writer is the liaison between the customer and the repair garage. Sometimes called a service advisor or coordinator, they run the front desk and interact directly with your customers. The service writer is essentially the face of the business, and they fulfill several duties that keep the service center functional.
What does an automotive service writer do?
Service writers do a lot for a repair center. Here are some of their main duties:
- Delivering exceptional customer service
- Coordinating and managing service appointments
- Monitoring and overseeing vehicle maintenance and repairs
- Maintaining accurate records of customer and vehicle data
- Generating service cost estimates for customers
- Facilitating effective communication between customers and technicians
- Handling billing transactions and manage financial records
The duties of a service writer typically depend on their qualifications. Understanding the foundational credentials can help you choose the right candidate for your maintenance center.
Offering a Modern Auto Repair Shop Customer Experience Starts with a Modern Shop Management System
We're big advocates of modernizing your auto repair shop, and we don't necessarily mean replacing all your racks, updating all your compressors, and swapping out your alignment rack. Sure those might help, but we get those can be really big investments.
That's why we're focused on the behind-the-scenes operations of your shop, the overall management and flow of repair orders. Modern shop management software enables owners, managers, service advisors, and technicians to gain visibility into, and control over, their individual part of the process with specific functions:
- Cloud-based shop management
- Real-time control
- Digital Vehicle Inspections
- Built-In Payment Processing
- Digital Shop Communications
- Efficient Parts and Inventory Management
While all of these directly work to modernize your shop operations, they also work to modernize your shop experience for customers.
When your shop is using Digital Vehicle Inspections instead of paper printouts, you're not only making it easier for your technicians and service advisors to communicate and collaborate, but you're also modernizing how your shop interacts with customers, by emailing or texting results and approval requests.
Modern auto repair shop software not only makes it easy but lays the foundation for a modern customer experience at every step.