Increasing Revenue on Your Everyday Automotive Repair Order
When you run your own shop, paying close attention to each automotive repair order is critical to success. Each simple invoice builds a history and relationship with the customer. It’s also a benchmark for your shop’s success. Discover the clever ways that you can increase the average repair order or ARO. These details add up to strong profits.
What is ARO
The average repair order (ARO) is the typical amount that you charge for repair work in your shop. If you’re running your auto repair business in the right way, these numbers should be relatively close in value on each ticket. When your parts and labor are close in value, that fact means that you’re selling the proper services to quality customers.
Focusing on Increased Productivity
The first tip for increased ARO is focusing on productivity. Don’t fill your day with a vehicle repair appointment every 15 minutes. Strive for about 50 percent of your day to be filled with official appointments. You’ll spend more time with each customer, which equates to up-selling opportunities and trust-building processes.
Influencing ARO Factors
Treat your customers like family, suggests Ratchet & Wrench Magazine. There are other factors that can be used to positively influence each mechanic’s invoice too, including:
- Customer Type
Identify each customer as either “discount” or “quality” as they walk in the shop. Quality customers understand that their repair service may require extra tasks.
- Acquiring New Clients
If you see a decrease in each auto repair receipt value, remember that customer loss is part of the game. Set a goal to gain new clients each month.
- Quality Inspections
Increase ARO by performing an inspection on each car with a digital vehicle inspection app. A vehicle repair quote including pictures with recommendations is entirely transparent to any skeptical customers at that point.
- Internal-Communication Challenges
Be sure to use digital formats for your automotive repair order forms. Your front counter and back shop employees will be on the same page as a result.
- Work-Order Details
Start every work order with the customer’s primary concern. Follow it up with recommended items.
Pleasing Your Customer Base With an Enhanced Automotive Repair Order
The best way to please a customer base is by listening to their concerns and being certified in your work, reports the Advanced Technology Institute. As the customer arrives at your shop, give him or her your full attention. Respond to the main concern. Save your suggestions until they feel comfortable with your prognosis on the main issue. Your repair receipts will rise in value as a result.
Easy Ways to Increase Your ARO
Try these tools to improve your understanding of the ARO definition and auto repair shop business:
Start an auto repair work order on a digital platform. Take photos of the VIN and license plate. As the order form moves through the repair shop, there are no questions about the information.
Reports to the Customer
Skip the handwritten invoice. You have a better option with a digital repair. List out the services performed and any suggestions so that you can gain more revenue.
Keep the ARO revenue in mind as you implement these ideas. Every business goes through its ups and downs. Increasing automotive repair order value can lead the way toward a better tomorrow.