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.
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.