It’s no secret that a successful shop depends on a steady stream of cars pulling into its bays to keep it running. But here’s what the data actually shows: Sometimes it’s less about the quantity of cars and more about the quality of service delivered that makes the difference in a shop’s bottom line.
The OEC U.S. General Auto Repair Shop Survey Report, built from the input of 700 auto repair professionals across the country, took a look at what top-performing shops do to make sure they’re offering customers the best possible service and not leaving money on the table. From that data, the top five Average Repair Order (ARO) boosters emerged, highlighting the strategies shops are implementing to keep customers happy and businesses thriving.
1. Digital Vehicle Inspections
If there’s one tool that has transformed how shops communicate value to their customers, it’s the Digital Vehicle Inspection (DVI). Gone are the days of a technician scribbling notes on a paper form and hoping the service advisor can translate it into a sale. DVIs allow technicians to document vehicle condition with photos, videos, and detailed notes, all of which can be sent directly to the customer via phone or email in real time.
The impact on ARO is significant. When customers can see with their own eyes that a brake pad is worn down to the metal or that a fluid has turned dark and gritty, they’re far more likely to approve the repair. It also helps remove the “I’ll just wait and see” response that costs shops revenue every day. DVIs build trust by making the invisible visible, and trust is the currency that keeps customers coming back.
2. Upselling and Cross-Selling
Upselling and cross-selling get a bad reputation when they’re done poorly and feel pushy, irrelevant, or like a cash grab. But when they’re done right, they actually serve the customer. A customer comes in for an oil change, but your technician notices the cabin air filter is clogged and the wiper blades are cracked heading into a rainy season. Informing the customer about these additional repairs isn’t a cash grab; it’s your technician doing due diligence and putting that customer and their vehicle first.
Top-performing shops have a process for this. Service advisors are trained to present additional recommendations confidently and clearly, not apologetically (or aggressively). They use the DVI to support the conversation with visual evidence. They also track deferred repairs so when a customer comes back later, the advisor can follow up on work that was previously declined.
3. Use of a Parts Matrix
Parts pricing is one of the areas where shops most commonly undercharge, often without realizing it. A parts matrix is a structured pricing tool built into your shop management system that automatically applies markup to parts based on cost tiers. Rather than applying a flat markup across the board, or worse, guessing, a matrix ensures you’re pricing parts competitively and profitably.
Here’s why it matters: the lower the cost of a part, the higher the percentage markup typically needs to be to cover handling, ordering, and carrying costs. Without a matrix, shops often over-discount high-cost parts and under-recover low-cost ones. That adds up to a significant revenue gap across thousands of repair orders each year.
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4. Use of a Labor Matrix
Just as a parts matrix protects parts profitability, a labor matrix does the same for labor revenue. A labor matrix adjusts labor rates based on the type of job, complexity, or time involved, ensuring time-intensive or highly skilled work is priced accordingly.
Many shops set a single labor rate and apply it uniformly, leaving money on the table for complex diagnostic work or specialized repairs that demand more expertise and time. A well-built labor matrix accounts for these differences, allowing your shop to charge what the work is actually worth.
5. Enhanced Customer Experience
The first four boosters are largely operational, systems and tools that improve how your shop runs. But the fifth is about how your shop feels to the people who walk through the door or interact with you digitally. Customer experience has emerged as one of the most powerful differentiators between average shops and exceptional ones.
What does this look like in practice? It starts before the visit even begins. Customers should be able to book an appointment online in minutes and receive an automatic text reminder the day before their appointment. At drop-off, offering a ride service removes one of the most common barriers to saying yes to repairs.
The waiting area matters too: A clean, comfortable space with coffee and tea on hand signals that your shop respects the people in it. Mid-repair, a clear and easy-to-read DVI sent directly to the customer’s phone keeps them informed and builds confidence in your recommendations. From there, it’s about staying in communication, inlcuding digital estimate approvals via text or email, a confirmation text when the vehicle is ready, and a follow-up message after pickup to make sure they’re satisfied.
All of these customer offerings add up. Customers who feel genuinely cared for don’t shop around. They come back, refer friends and family, and over time they become one of your shop’s most valuable assets.
Beyond the Top 5: More Ways Shops Are Growing ARO
The five strategies above were the most widely identified ARO drivers in our survey of nearly 700 repair professionals, but shops identified several additional contributors worth noting:
- Service advisor sales training came up consistently as a force multiplier, since even the best tools and processes underperform when the people using them aren’t equipped or prepared for the conversation.
- Marketing and promotions also help bring new customers to your shop and re-engage lapsed ones.
- Comprehensive maintenance packages give customers a clear, convenient path to staying on top of their vehicle’s health.
But at the foundation of all of it: Repair quality and expertise. Nothing replaces the trust that comes from doing excellent work and establishing solid relationships.
