See how shops across the U.S. are performing compared to others using four key performance indicators
Houston—A new benchmarking tool gives shop owners visibility into how their performance compares to top shops across the country, or in their own state.
The Tekmetric Shop Index measures the four metrics that drive shop profitability: average repair order (ARO), car count, parts margin and effective labor rate. Data is aggregated quarterly from more than 10,000 auto repair shops across North America.
Here’s a look at Q2 numbers. New data will be released at the beginning of each quarter to reflect latest changes and numbers.
Q2: Average Repair Order (ARO)
The average dollar value per repair order, the most direct indicator of revenue per vehicle and one of the clearest levers for improving profitability.
Q2: Car Count
The number of vehicles serviced in a given period. Combined with ARO, car count determines total revenue capacity.
Q2: Parts Margin
The percentage markup applied to parts. Unprotected parts margins are among the most common sources of profit loss in independent shops.
Q2: Effective Labor Rate
The actual revenue generated per labor hour billed. The gap between a shop’s posted and effective labor rate points directly to opportunity.
Shop owners can filter results by state to benchmark against top shops in their own market, or nationally. To view the Tekmetric Shop Index interactively, click here.
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