Tekmetric’s Guide to Effective Customer Communication

Tekmetric just revealed two new tools to help shops win more customers and run a more efficient front desk. Get the full story. Watch the on-demand webinar now.

Generating new business in auto repair is hard. The industry is projected to grow just 2% over inflation annually over the next five years. The average American has 15 auto repair shops within 10 miles of their home, according to Tekmetric's internal data, meaning competition for every new customer is fierce. And across multiple industry surveys, roughly two-thirds of drivers say they don't fully trust their local repair shop — making it that much harder to win them over. The result: only one in 10 shops both grows and hits profit margins of 20% or higher. 

"We know the competition to win new customers is fierce,” said Lauren Langston, president and COO, Tekmetric. “That means we need the right strategies and the right tools in order to do it."

Tekmetric's data shows that winning shops consistently focus on four outcomes: car count, average repair order (ARO), driver experience, and cycle time. Two new Tekmetric products — Tekmetric Digital Ads and Tekmetric Phones — are built to move the needle on all four.

Tekmetric Digital Ads

Winning new customers starts with being found. Tekmetric Digital Ads is an AI-powered add on that helps your shop show up where high-intent drivers are already searching for auto repair on Google Maps and Apple Maps. Because it connects directly to Tekmetric, you can see exactly how your ad spend translates into real revenue, not just clicks.

"It's really hard to see what's working. One of the superpowers of this product is that it's connected directly with Tekmetric," said Jared Haleck, chief product officer, Tekmetric.

Tekmetric Digital Ads is in early access now and rolling out to selected customers.

Tekmetric Phones

Every missed moment at the front desk has a cost. Tekmetric Phones gives your service advisors the customer context they need — instantly, the moment the phone rings — so they can spend less time looking things up and more time taking care of customers.

"Service advisors especially are loving it,” Haleck said. “It just saves them so much time. It creates so much convenience for them.”

Tekmetric Phones is in beta, available for customers on RingCentral.

Watch the On-Demand Webinar

Langston and Haleck walked through all of it — the industry data, live product demos, and what's coming next — in their webinar, "Building for the Results-Driven Repair Shop."

The recording is available now. If you want to see exactly how these tools work and what they can do for your shop, this is the place to start.

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At Tektonic 2026, one of the most memorable moments of the conference came when Tekmetric turned the spotlight on the shops doing the best work.

The inaugural Shop Excellence Awards, powered by performance insights from the Tekmetric platform, celebrated repair shops that are not only delivering standout business results, but also redefining what exceptional customer service, shop culture, and operational excellence look like across the automotive repair industry.

"Tonight is probably going to be my favorite part of all of Tektonic," Tekmetric CEO and Founder Sunil Patel said during the ceremony. "None of this is about us. It's about the shops in this room, the people actually doing the work. Running shops, leading teams, taking care of customers every single day."

Using 12 months of platform performance data from Tektonic event registrants, Tekmetric recognized shops that rose to the top across key measures of customer trust, service consistency, team culture, transparency, and operational growth.

"The shops that win today aren't just fixing cars … they're building businesses, leading teams, and delivering experiences customers remember," Tekmetric President & COO Lauren Langston said.

Top Car Count Award: Dick's Point S Tire & Auto Repair

The Top Car Count Award recognizes a shop that has earned extraordinary trust from its community at scale.

This year's winner, Dick's Point S Tire & Auto Repair in Battle Ground, Wash., served more than 25,000 vehicles during the last 12 months.

That level of throughput only happens when customers return again and again, and when shop teams consistently deliver an experience drivers trust.

"Serving nearly 26,500 vehicles in a single year means thousands of drivers who found a shop they could count on, returned when they needed help, and left satisfied," Langston said.

Sustained Growth Award: Branch Automotive and AutoPro Maryville

Growth is one thing. Sustaining it is something else entirely.

The Sustained Growth Award recognizes shops that have continuously raised the bar for what they deliver to every customer who walks through the door. Growth in average repair order reflects shops that are doing better inspections, making clearer recommendations, and earning customer confidence in the work their vehicles actually need. These two shops demonstrated the most consistent upward trajectory throughout 2025.

This year's winners were Branch Automotive in Highlands Ranch, Colo., and AutoPro Maryville in Maryville, Tenn.

Branch Automotive posted nine straight month-over-month increases in ARO. AutoPro Maryville also delivered nine month-over-month increases, growing by an impressive 51%.

Together, the two shops exemplify what sustainable growth looks like: stronger inspections, clearer recommendations, and the kind of customer trust that leads to consistently higher-value work.

DVI Powerhouse Award: Craftsman Auto Care – Fairfax

Transparency remains one of the most powerful drivers of trust in modern auto repair, and no shop demonstrated that better than Craftsman Auto Care – Fairfax.

“Winning means everything. It means my team winning–being able to pay the best in the business, being able to offer the best benefits, having amazing employees and amazing customers who just fall in love with us,” said Matt Curry, president and CEO of Craftsman Auto Care.

With almost 10,000 five-star reviews, with an average rating of 4.9 stars, Curry said that's a huge trust signal with all of their customers. Craftsman Auto Care uploaded hundreds of thousands of digital inspection images during a year, the highest total Tekmetric’s dataset.

"That's 300,000 moments where a customer could clearly see what their vehicle needed," Langston said. "Removing guesswork, building confidence, and helping drivers make informed decisions about their car."

The result is a service experience rooted in clarity, education, and trust.

Booked Solid Award: A Master Mechanic and Demore's Automotive

The Booked Solid Award honors shops that have built reliable, predictable demand through reputation and service, the kind customers actively seek out, return to, and refer others to.

This year's first winner, A Master Mechanic in Sparks, Nev., recorded the largest booked appointments in the Tekmetric network dataset.

This year's second winner, Demore's Automotive in Palmer, Mass., earned its recognition by proving that smart marketing and exceptional service are a powerful combination. As a Tekmetric Digital Ads beta participant, the shop turned digital visibility into real volume, reaching the right drivers at the right moment and converting first visits into long-term customer relationships. The result is full bays, steady demand, and a shop that delivers every time someone walks through the door.

Together, these two shops show that full schedules don't happen by accident. They're the result of consistent service, earned trust, and, increasingly, the strategic use of digital tools to reach customers before the competition does.

Financing Excellence Award: The Garagisti Katy

For many drivers, the biggest obstacle to safe, reliable transportation is not understanding the repair, it is figuring out how to pay for it.

The Financing Excellence Award recognizes the shop that best removed that barrier.

This year's winner, The Garagisti Katy in Katy, Texas, was the leading user of Buy Now, Pay Later financing across the Tekmetric network.

“I feel great, not only for myself, but for the team and everything that they do: the customer interactions, the sales, helping close the sale. It means a lot,” said Eddie Marlow, manager of The Garagisti Katy. “I have a great team, a great owner, and this award means a lot to all of us.”

By making financing a seamless part of the customer journey, the shop helped more drivers move forward with necessary repairs without added financial stress.

"This shop has made that moment easier," Patel said, referencing the often difficult conversations shops have when customers need repairs but hesitate because of cost.

Best Shop to Work For: The Kar Shop and Ice Cold Air

The final award of the evening focused on the people behind every customer experience.

The Best Shop to Work For Award recognized two shops this year, each demonstrating, in their own way, that the customer experience will never exceed the employee experience.

The first winner, The Kar Shop in Rogers, Ark., was recognized for building a culture where technicians and staff feel valued, supported, and empowered to grow. During the ceremony, Tekmetric leaders shared one story that stood out: the shop changed its operating hours so employees could spend more time with their families while continuing to invest in training and long-term career development.

“It's really kind of impressive that our guys think so much of us. In your day to day, you don't really think about things like that,” said Keith Kingston, one of The Kar Shop’s owners. “You're there to make sure the customers get taken care of, that everything flows well, that you have all your parts; there are so many small details you have to worry about. You don't always stop to think about how everybody feels. So to know that they said good things about us, it's really kind of humbling.”

The second winner, Ice Cold Air, earned its recognition through intentional hiring, steady processes, and genuine leadership, building a workplace where people feel supported, valued, and proud to belong. 

“And what just happened right there with my team and my wife? That energy is going to go back home with us,” Ashley Butler, owner and franchisor of Ice Cold Air, said immediately after winning the award. “It's going to go throughout the entire organization. And next year, we're coming back with a minimum of two people from each shop, that means 28 people. We're going to bring techs, we're going to bring managers, we're going to bring franchisees, so they can come build that energy and experience Tekmetric firsthand.”

With more than 100 employees, Ice Cold Air’s impact reaches far beyond the shop floor. The Tampa, Fla., team believes in doing things the right way: investing in their people, giving back to their community, and building something that lasts.

"It shows up in their culture, their retention, and in every customer interaction," Langston said.

Raising the Standard for the Industry

The Shop Excellence Awards were ultimately about more than recognition. They highlighted the operational habits, customer-first decisions, and team investments that move the entire industry forward.

At Tekmetric, that is exactly what Tektonic is built to celebrate: the shops leading by example and showing what great looks like.

"To all of our winners, and honestly, to every shop in this room, we know what it takes to do this well," Patel said in closing. "The standard you're setting is what moves this entire industry forward."

Join us at next year's Tektonic to hear their stories, see the strategies behind the numbers, and connect with the shop leaders shaping the future of auto repair.

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As a shop owner, you aren't just selling a car repair; you are selling expertise, specialized equipment, and peace of mind. If your rates are too low, you’ll struggle to keep the lights on. If they’re too high without the value to back them up, customers may opt for a competitor.

In this guide, we’ll walk through exactly how to find that "sweet spot" for your labor rate so you can build a sustainable, profitable shop.

How much should a mechanic charge per hour?

Mechanic shops should charge a labor rate that is competitive in their area, covers their overhead costs (rent, utilities, employees, etc.), and allows them to maintain a healthy profit margin (40-70%) to run the shop. Whether you are an independent shop or a large dealership, your labor rate and parts markup are your primary vehicles for maintaining profitability.

Key terms to know

Before we dive into the math, we need to understand these concepts.

• Loaded labor rate: is the true cost of an employee, including their hourly wage, taxes, benefits, and insurance.
• Hourly labor rate pricing: is the "posted" rate—the number your customers see on the repair estimate. It is the flat dollar amount you charge per billable hour.
• Flat-Rate pricing: is a system where a specific repair is assigned a predetermined amount of time (e.g., a water pump replacement is "booked" at 3.4 hours). The customer pays for 3.4 hours regardless of whether the auto mechanic finishes in two hours or five.
• Effective labor rate (ELR): is the real-world number that matters. It’s calculated by taking your total labor sales and dividing them by the actual hours your technicians worked.

How to set your automotive shop labor rate (step by step)

Setting your rate shouldn't be a guessing game based on what the guy down the street is charging. It should be a data-driven decision. Here is a step-by-step approach to finding your labor rate.

Step 1: Calculate your "loaded" labor cost

First, determine exactly what it costs you to pay an employee. This isn't just their hourly wage. You should include:

• Wages and overtime.
• Payroll taxes.
• Benefits (Health insurance, 401k).
• Workers' comp and liability insurance.
• Training and certifications.
• Any other benefits you provide employees.

Divide this total annual cost by the number of billable hours that the employee produces in a year. This is your "loaded" cost and does not include any profit margin.

Step 2: Account for overhead

Your labor revenue needs to cover more than just the employee. It must also cover the overhead costs of running an auto repair business:

• Rent.
• Utilities and shop supplies.

• Marketing and software.
• Taxes.

Step 3: Determine your desired profit margin

In the automotive industry, labor profit margins vary greatly, but most shops aim for 40-70%. If your loaded cost for a technician is $45 per hour and you want a 65% profit margin, your base mechanic labor rate should be at least $128 per hour.

Step 4: Benchmark against your competition

While your internal numbers should be your primary focus, you shouldn’t ignore the local market. If your labor rate is $128 per hour but every other independent shop in your town is at $100, you need to either justify your value through superior service or find ways to reduce your overhead. Make sure you benchmark against competitors of similar size, services offered, and geographically nearby.

Step 5: Implement a labor matrix

Not every repair order is the same. Many successful shops use a labor guide combined with a labor matrix that slightly increases the rate for more complex jobs or diagnostic work. Shops that perform more specialized repairs or focus on specialty vehicles should heavily consider implementing a labor matrix.

Which factors impact labor rates?

Your rate shouldn't be static. Several external and internal factors will influence how much you can—and should—charge for car repair services.

• Location: A higher cost of living in cities like California or New York necessitates higher labor rates compared to rural towns. Your technicians need to earn enough to live nearby.
• Shop type: A general auto repair shop usually has lower rates than a specialty Euro shop or a heavy-duty diesel facility. Specialization requires more expensive tools and higher-paid talent.
• Certifications: If your team holds advanced ASE certifications or factory training, you provide more value. Customers are often willing to pay more for a repair estimate from a shop they trust to do it right the first time.

• Warranty: If you offer a service warranty, you are taking on more risk and can charge more for the peace of mind.

5 Ways Tekmetric can help your shop be more profitable

Tekmetric can help you be more profitable by providing the features and reporting you need to make better business decisions. Tekmetric shops average a 65% labor profit margin by utilizing modern features that help you build trust with your customers and keep them coming back year after year.

1. Custom labor matrix: Tekmetric allows you to set up labor matrices that automatically adjust your mechanic labor rate. This ensures you don’t undercharge for difficult work.
2. Real-Time reports: Stop waiting until the end of the month to see if you made money. Tekmetric gives shop owners a real-time look at their gross profit, plus many other helpful metrics.
3. Measuring effective labor rate: As we discussed, your posted rate isn't always what you take home. Tekmetric tracks your ELR automatically, showing you exactly where "leaks" (like excessive discounting or slow techs) are happening.
4. Digital Vehicle Inspections (DVI): Higher rates are easier to justify when you can show the customer exactly why they need the work. Tekmetric’s DVIs build trust and increase customer satisfaction, making the price conversation much smoother.
5. Technician efficiency: By tracking technician efficiency and productivity within the platform, you can see which members of your team are hitting their goals and which employees might need more coaching.

Final thoughts

Setting your labor rate requires constant attention to your local market, your internal costs, and the evolving complexity of car repair. By following these steps, you’ll ensure that your shop doesn't just keep cars running—it keeps your business thriving. If you have questions about Tekmetric or how we can help your shop be more profitable, book your free demo today.