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Increase Your Auto Repair Shop's Profit Margin With DVIs

Increase Your Auto Repair Shop’s Profit Margin With DVIs

April 21, 2023

Before supply chains made it harder to get a new car, the average American spent $1,986 on car repairs. Now, they invest even more to keep their vehicles running until they can afford, or even get, a new one. That trend helps auto repair shop profit margins.

However, auto repair shop owners also face higher staffing and supply costs just to keep their bays open. Thankfully, they have one easy tool that streamlines their operations, improves efficiency and boosts profits. 

So, let’s take a look at how digital vehicle inspections (DVIs) help shops earn more money per repair. 

How DVIs Help Auto Repair Shops

Digital vehicle inspections replace the old paper checklist that ensures that a tech looks at all relevant components. However, it does so much more than that.

DVIs capture photos and videos of the broken and worn parts so drivers can easily see what’s wrong. They also keep a record of suggested repairs for the future. All this information lives within the easily accessible digital record for each vehicle.

As a result, service advisors have information at their fingertips and can share it with clients. They can recommend additional services and back them up with proof to justify the work, increasing the average repair order per customer and keeping your bays busy. 

All this happens thanks to the key features of DVI software that auto repair shops need:

  • Visual inspection tools
  • Integration with shop management systems
  • Customizable inspection templates

DVIs Help Increase Auto Repair Shop Profit Margins

On average, auto repair shops earn an average profit margin of 50 to 65% on labor and 20 to 28% on selling auto parts. Yet, when you find more potential repairs per inspection, you make more profit per customer.

For starters, DVIs provide more accurate estimates based on information gleaned from previous repairs. Having templates for various makes and models makes sure you never miss a beat. 

Next, your shop staff spends less time trying to convince customers to invest in a repair. When they can show what’s needed, making the upsell is easier than “Do you want fries with that?” Having it all on a screen saves them from filing papers then trying to find them again. 

“Autoflow provides a great platform for communication with our customers in a manner that allows greater understanding of the needs of the vehicle. It offers a way for us to be transparent with our customers about the needs of their vehicles.”

  • Chris A. at Spectra Auto

“Autoflow increased my average repair order significantly with pictures.”

  • Billy H. with CMC Auto Care

“Being able to link pictures and videos is a priceless selling tool.”

  • Jennifer C. at Norlang Auto

Tips for Maximizing Net Profit with DVI Software

Fortunately, you can see similar results in your shop if you use DVIs to improve sales and boost customer satisfaction.

Successful shops use these strategies:

  • Personalizing inspections for each customer
  • Providing clear and concise inspection reports
  • Offering online payment options

To make them happen, it’s worthwhile to invest in these best practices to streamline operations and boost efficiency:

  • Train staff on how to use the software effectively
  • Regularly review and update inspection templates
  • Incorporate customer feedback into the inspection process to improve customer service and reduce friction

With this information flow, you can easily measure the ROI of digital vehicle inspection software when you:

  • Set clear performance metrics
  • Track and analyze key performance indicators
  • Compare performance before and after implementing the software

Integrating DVIs into Existing Operations

It is much easier to add DVI software into an auto repair shop’s existing operations when you take these steps:

  • Select a software that is compatible with existing shop management systems
  • Communicate the benefits of the software to staff
  • Implement the software in stages to minimize disruption

Once you’ve followed those steps, keep up the momentum to drive business results by:

  • Setting performance metrics and tracking progress
  • Regularly reviewing and analyzing inspection data
  • Making data-driven decisions to optimize operations

Overcoming Common Challenges 

With every change comes some resistance. Your staff may feel reluctant to give up their comfortable habits and familiar workflows. If you hit a glitch while integrating systems, that can slow down the process.

Finally, it may seem overwhelming to manage a large volume of inspection data. However, working with the right partner can help you overcome these challenges.

First, when you train and support your staff, they can soon see the benefits and techniques to work with DVIs. Also, when you select a software vendor that offers integration services, they use their expertise to bring your systems together. Meanwhile, you just focus on running your shop.

By investing in data management and analysis tools, you can easily manage all that data. In fact, it will be easier to tap into from now on.

FAQ

What resources are available to help me start and grow my auto repair shop?

Starting and growing your auto repair shop can be a challenging task, but with the right resources, you can maximize your chances of success. Autoflow offers a range of tools and integrations designed to help your shop thrive.

To begin with, Autoflow provides several marketing solutions that can help you expand your customer base. By integrating with website builders like Turnkey Marketing, Auto Shop Solutions, and Repair Shop Websites, you can effectively promote your services and attract new customers.

In addition, Autoflow offers reports that include important metrics such as Average Repair Order (ARO) size. This allows you to assess the efficiency and profitability of your shop. The report also provides insights into ARO Sales, ARO Profit, and ARO Profit Margin, giving you a comprehensive overview of your shop’s financial performance.

To track the impact of your strategies, Autoflow offers various business reports that help you monitor different aspects of your operations. These reports enable you to visualize the profits generated by each tactic and make informed decisions accordingly. Additionally, Autoflow’s Real-Time Reports provide up-to-date information on your shop’s financial performance, allowing you to see exactly how much money is coming in and make smart financial decisions.

Furthermore, building trust with your customers is vital for the success of your auto repair shop. Autoflow’s marketing module and reports enable you to strengthen relationships with both new and returning customers. These features and reports include Audiences, Customer Lists, Declined Jobs, Customer Leads, and Marketing Sources, helping you to maintain a loyal customer base and identify areas for improvement.

With Autoflow’s comprehensive suite of tools and reports, you have access to clear, organized insights into the performance of your auto repair shop. This wealth of information empowers you to make informed decisions, maximize efficiency, and ultimately improve your shop’s profit margin.

How can I assess the profitability of my auto repair shop?

Assessing the profitability of your auto repair shop requires a thorough monitoring of various marketing strategies and their effectiveness. It is crucial to track and understand the cause-and-effect relationship of these strategies to determine what is working and why. By utilizing a software partner like Autoflow you can track the results and benefits that each marketing strategy brings to your shop.

One effective way to assess profitability is by utilizing a report that helps you identify the marketing source of your new customers. A report like this allows you to explore the percentage of new sales versus repeat sales and identify which marketing sources are bringing in the most business. By knowing which strategies are generating the most customers, you can make informed decisions on where to allocate your marketing resources.

In addition to monitoring marketing efforts, it is essential to optimize productivity to improve your average repair order (ARO) and make room for new customers. Autoflow integrates with various marketing solutions to help you grow your customer base. By investing in systems that enhance productivity and efficiency, you can increase your ARO. 

To comprehensively assess profitability, it is crucial to keep an eye on the financial health of your shop. In conjunction with your shop management system financial reports with Autoflow we enable you to see the exact amount of money coming in and make informed financial decisions. By staying on top of your shop’s overall health, including revenue, customer base, expenses, and budget, you can make proactive adjustments to enhance profitability.

Regularly checking in with your shop’s bookkeeper or accountant is imperative to ensure accurate financial records and identify any areas of improvement. Effective communication with your team and self-reflection are also vital aspects of profitability assessment. By actively monitoring each tactic mentioned above, you can identify areas for improvement and make informed decisions that positively impact your bottom line.

In conclusion, effective profitability assessment requires diligent monitoring of marketing strategies, optimization of productivity, utilization of business and financial reports, and regular evaluation of your shop’s overall health. By investing in a robust software platform, you’ll gain the tools and insights needed to track and measure the success of your auto repair shop.

How can I boost my auto repair shop profit margin?

Track everything, including monitoring your marketing strategies.
Autoflow’s reports provide several benefits for monitoring marketing strategies. It helps you gain valuable insights into the cause and effect of different strategies, track their effectiveness, determine the reasons behind their success, and ultimately measure the payoff they bring to your shop. This information can inform your decision-making process and help optimize your marketing efforts for better results.

How can I track the payoff that each marketing strategy brings to my shop?
Autoflow’s reports allow you to track the payoff that each marketing strategy brings to your shop. By analyzing the data in the report, you can quantify the impact of each strategy in terms of customer acquisition, increased revenue, and other key performance indicators.

How can I determine what marketing strategies are working and why they are working?
With the help of Autoflow’s reports, you can determine what marketing strategies are working and why they are working. By closely monitoring the data and metrics associated with each strategy, you can identify patterns and correlations that explain the success of certain marketing approaches.

How can I track the effectiveness of different marketing strategies?
Autoflow’s reports enable you to track the effectiveness of different marketing strategies. By analyzing the data provided in the report, you can determine which strategies are generating the desired results and which ones may need adjustment or further optimization.

How can I monitor the cause and effect of various marketing strategies?
You can monitor the cause and effect of various marketing strategies by utilizing Autoflow’s reports. Our report helps track the payoff that each marketing strategy brings to your shop, allowing you to analyze the impact of different strategies and understand their effectiveness.

Conclusion

The ups and downs of the economy have thrown you enough curve balls in recent years. By adding DVI software to your shop, you take away extra workload so you focus on customers and their repairs.

Using your time and resources more wisely improves your auto repair shop profit margin. If you need a cost-saving solution for your shop, request a demo today.

You’ll be glad you did when you see the results clearly on your screen.

 

Lois Tuffin

Lois Tuffin

Automotive freelancer

Lois Tuffin