Average repair order (ARO) is one of the most important metrics when it comes to your repair shop’s success. When your automotive repair shop focuses on measuring average repair orders, you’ll eventually run a more consistent and efficient shop where everyone's' productivity is maximized.
Maximizing the work on each vehicle that comes through your shop will lead to a higher ARO. Too many shops are worried about the number of vehicles coming in and out of your bays instead of capitalizing on the cars that are already there.
There are a few key factors that affect your ARO that can easily be controlled in your auto repair shop:
1. Type of Customers
Knowing which customers are only going to get the bare minimum in needed repairs done and those who actually opt for the preventative maintenance is important. Discount customers are a dime a dozen; quality customers are who your business thrives on.
2. Scheduling in Advance
Scheduling in advance lets you control how many customers come in on any given day. Scheduling improves the value per ARO because it allows you to spend quality time with each customer. The customer’s concerns are better documented, recommendations for additional services can be offered, and a relationship can be formed.
3. New Customer Acquisition
Did you know the average auto repair shop loses about 18% of their repeat customers every year? That's why it's so important to attract new customers. You should be aiming for at least a 10% growth* year over year.
*That number fluctuates in customer equivalency from shop to shop.
4. Thorough Inspection
You must inspect every vehicle and make sure customers know the importance of preventative maintenance. Customers who usually pass on a full inspection don’t trust that a repair shop will be honest with them. One way to avoid this is to use digital vehicle inspection so you can show the customer pictures or videos of their vehicle and any repairs that are needed. Educating your customers is a great way to build trust with them.
5. Effective Communication
It's no secret that communication is important to business growth. It is vital to efficiency and productivity. Once the service tech accurately assesses a vehicle’s problem and its requirements, he or she must tell the Service Adviser what is required, why it’s required, what parts are needed, and how long the job should take. That’s a lot of information to pass along. A good digital inspection software can help make this communication effortless and clear to understand.
When implemented correctly, these helpful tips can drive up your average repair order, and make your shop more profitable. Digital inspection software like BOLT ON TECHNOLOGY can aid in the growth and productivity of your auto repair shop by offering easier solutions to your everyday problems.