Your Tekmetric Shop Index Rankings Are In. Here's What to Do With Them.

Kris Turner

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June 29, 2026

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Read time: 3 min

Compare your shop's performance against real data from thousands of auto repair shops by state.

Benchmarking data is only useful when it changes what you do next.

If you've run your shop's numbers through the Tekmetric Shop Index and seen where you rank on ARO, car count, parts margin, and effective labor rate — good. You have a diagnosis. Now you need a plan.

This post walks through what each gap in your TSI results is actually signaling, which operational levers move the needle on each one, and how to build a focused 90-day improvement target that gives your team something concrete to work toward.

Start With the Biggest Gap

Your TSI results will show you four rankings. Resist the temptation to try to improve all four at once. The shops that make the most progress pick the metric with the largest gap and stay focused on it for a full quarter before adding another priority.

Trying to improve ARO, car count, parts margin, and effective labor rate simultaneously often means improving none of them because the operational changes required for each are different and can compete for your team's attention.

So step one is simple: look at your four rankings, find the biggest gap from the industry benchmark, and start there.

Gap: ARO Below Benchmark

If your average repair order is lagging, the most common root cause is inspection performance. Either digital vehicle inspections (DVIs) aren't being completed consistently, or they're being completed but not converted into approved work.

A few questions to answer before you act:

  • What percentage of repair orders have a completed DVI attached?
  • Of the DVIs sent to customers, what percentage include photos or video?
  • What's your close ratio on recommended work?

If DVI completion is below 90%, that's almost always the first lever. Tekmetric's Inspection Report shows completion rates by technician, making it straightforward to identify who needs coaching and who's already performing well.

"Now I can look at everybody at a glance. I can be in a different state, different city and know exactly what's going on in each location all the time."  — Leroy Ingram, Ooroo Auto Care, Tekmetric Customer

If DVI completion is strong but close ratio is low, the issue is likely in how inspections are being communicated to customers — photo and video quality, the language in findings, how quickly the estimate follows the inspection.

Shops on Tekmetric also have access to the Parts and Labor Matrix, which protects against underpricing. It can be a quiet ARO killer that doesn't show up until you look at margin data.

➡ See how your ARO compares →

Gap: Car Count Below Benchmark

A car count gap can mean two different things depending on how it breaks down: you're not bringing in enough new customers, or your existing customers aren't returning at the rate they should. Both problems need attention, but they need different solutions.

For new customers, the questions are acquisition-focused. Tekmetric's online booking gives customers a way to find you and schedule an appointment 24/7 — filling bays without your team picking up the phone. The more friction you remove from the booking process, the more new customers follow through.

For returning customers, the questions shift to communication. Are declined jobs being followed up? Are customers receiving service reminders? Tekmetric Marketing automates follow-ups on declined work and scheduled maintenance intervals — so your team stays in contact with your car count without adding manual effort.

"Seven hundred and two dollars in ad spend has generated 11 net-new customers and $12,802 in new customer revenue — an 18.3x return on ad spend before factoring in the lifetime value of those customers returning for future visits."  — Tanner Markham, Phase 2 Automotive, Tekmetric Customer

➡ See how your car count compares →

Gap: Parts Margin Below Benchmark


A parts margin gap is almost always a pricing problem — either your markup isn't keeping up with cost increases, you're applying flat markup where a tiered matrix would protect margin better, or your team is manually overriding prices inconsistently.

The fix starts with reviewing your Parts Matrix in Tekmetric. A well-structured matrix automatically applies the right markup based on part cost ranges, removing the inconsistency that comes from individual pricing decisions at the job level.

After updating the matrix, run your Parts Purchased Report to verify that retail pricing is reflecting the changes accurately. This is also a good time to cross-reference against recent vendor invoices — if costs have moved significantly in the last 6 months, your matrix thresholds may need updating.

➡ See how your parts margin compares →

Gap: Effective Labor Rate Below Benchmark


If your effective labor rate is trailing your posted rate, the most common culprits are inconsistent discounting, flat-rate job structures that cap labor recovery, or package pricing that doesn't account for actual labor time.

Start by pulling your Discount Detail Report to see where and how often discounts are being applied. If they're being applied inconsistently across your team, that's a coaching conversation — and Tekmetric's real-time reporting makes it easy to see which service writers are discounting most frequently.

The Labor Matrix is the structural fix. Similar to the parts matrix, a tiered labor matrix adjusts the billed hours or dollar amount based on configured ranges, protecting margin without changing what customers see on the invoice.

➡ See how your effective labor rate compares →

Building a 90-Day Improvement Target

Once you've identified your primary gap and the lever that addresses it, the last step is turning it into a measurable target for the next 90 days.

A good 90-day target is specific, tied to a leading indicator, and gives your team something to track week over week. For example:

  • ARO gap: "Increase DVI completion rate from 72% to 90% over 90 days, tracked weekly via Inspection Report"
  • Car count gap: "Launch declined-job follow-up automation within 30 days; track returning car count monthly for 90 days"
  • Parts margin gap: "Update Parts Matrix for all parts under $150 within two weeks; track parts margin weekly via Parts Purchased Report"
  • Labor rate gap: "Reduce average discount percentage by 15% over 90 days, tracked via Discount Detail Report"

These aren't arbitrary numbers — they're examples of the leading-indicator approach that lets you see progress before the outcome metric moves. Set yours based on where you're actually starting, not where you want to end.

Check Your Rankings Quarterly

Your TSI results are a snapshot. Set a reminder to re-run the benchmarking every quarter so you can see whether your numbers are moving relative to the industry — not just relative to your own history.

The shops that use benchmarking most effectively are the ones that treat it as a recurring discipline, not a one-time exercise.

"Thanks to Tekmetric, we've really enhanced our business and are looking to expand. We're the #1 shop, 6 years in a row in Upstate New York."  — Chris Chevalier, AAA Auto Repair, Tekmetric Customer

➡ Benchmark your shop now →

Takeaways

  • Start with your biggest gap — don't try to move all four metrics at once.
  • ARO gaps usually trace back to DVI completion rates or close ratios.
  • Car count gaps split into acquisition and retention problems — each needs a different fix.
  • Parts margin gaps are almost always a pricing matrix issue.
  • Effective labor rate gaps often come down to discounting habits and job structure.
  • A 90-day leading-indicator target turns benchmarking data into team direction.

➡ Benchmark your shop now →

👉 Ready to grow your automotive business? [Book a personalized Tekmetric Demo Here]

FAQ

More articles

We can't deny it, we're customer obsessed. That's why we went out of our way to visit shop owners who rely on Tekmetric every day! And part of why we're so customer-obsessed is because of how much our customers love Tekmetric, and its ability to empower shops.

That's why we’re celebrating another season as the leaders in the industry for shop management software!

Once again, for the third time in a row this year, G2 users have chosen Tekmetric as the leading solution for managing and revolutionizing their independent auto repair shop.

Tekmetric Chosen as the Clear Industry Leader

For their latest round of awards, Tekmetric was chosen as a clear industry leader for auto shop management software for the third time this year.

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We've said it before, and we'll say it again, this is all because of shops like yours!

All the amazing independent shops that do great work every day with Tekmetric, the shops that keep people's vehicles safe and reliable. The heroes that get their customers back on the road every single day!

We were just chosen because you all love us so much!

There’s Always More to Come!

Thank you! Thank you for partnering with us, and thank you for helping us create the best possible solution for running an independent auto repair shop!

We're excited to be awarded and regarded so highly, and we strive to keep that level of excellence and support at every step in your shop.

Tekmetric is always being updated, and we’ll never stop working with and supporting shops to help them run efficiently and with fewer headaches, so you can focus on doing what you love!

Have You Outgrown Cash Basis Accounting? Here’s How to Switch to Accrual Basis.

When customers walk into your auto repair shop, they’re trusting you and your team with the health of their vehicle, one of their most expensive assets.

They’re coming in with a problem or set of problems and expect your team to effectively fix those problems in a reasonable time frame.

And modern expectations for customer service have shifted as our technology has evolved. Customers don't want to have to find time for a phone call when they can just get texted updates about their repairs, and digital tools make it easier for shops to build transparency in their process.

Modern auto repair shop software not only makes it easy but lays the foundation for a modern customer experience at every step.

Offering a Modern Auto Repair Shop Customer Experience Starts with a Modern Shop Management System

We're big advocates of modernizing your auto repair shop, and we don't necessarily mean replacing all your racks, updating all your compressors, and swapping out your alignment rack. Sure those might help, but we get those can be really big investments.

That's why we're focused on the behind-the-scenes operations of your shop, the overall management and flow of repair orders. Modern shop management software enables owners, managers, service advisors, and technicians to gain visibility into, and control over, their individual part of the process with specific functions:

  • Cloud-based shop management
  • Real-time control
  • Digital Vehicle Inspections
  • Built-In Payment Processing
  • Digital Shop Communications
  • Efficient Parts and Inventory Management

While all of these directly work to modernize your shop operations, they also work to modernize your shop experience for customers.

When your shop is using Digital Vehicle Inspections instead of paper printouts, you're not only making it easier for your technicians and service advisors to communicate and collaborate, but you're also modernizing how your shop interacts with customers, by emailing or texting results and approval requests.

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