Three Benefits of Integrated Payments in Your Auto Repair Shop

Neil Patel

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August 23, 2024

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Read time: 3 min

The customer experience begins from the time vehicle owners bring in their car all the way to the final touchpoint: the payments portion. Integrated payments meet customers where they are in today’s digital market whether that means they can pay from their home, pick up their vehicle after hours or pay from states away for college students to pick up their car. Beyond approving an estimate and two-way texting, customers can pay wherever they are, whenever it is most convenient for them. Integrated payments facilitate shop efficiency, improve the customer experience and meet customers where they need to be.

1. Facilitate shop efficiency

Integrated payments help the shop run more efficiently with a visible, centralized location. Service advisors maximize the shop’s workflow and drive the bottom line because they can complete more repairs due to efficiency. Integrated payments allow customers to pay without being at the shop or needing a physical credit card. Forgot your credit card at home? Not a problem!

Tekmetric’s text- to-pay feature allows your customers to pay anytime, from anywhere - whether they’re a busy professional who needs to pick up after hours or a parent paying for repairs for their college student. Text-to-Pay allows you to get the repair done and be able to pay for it without a major disruption to your daily routine or needing a physical credit card to make a payment.

2. Improve the customer experience 

Along with facilitating shop efficiency, integrated payments streamline the automotive customer experience with a unique opportunity to drive revenue to the shop while also providing a value-added experience to the customer. Customers will remember how convenient (or inconvenient) it was to pay during the final touchpoint of the auto repair process.

In addition to text-to-pay, integrated payments offer flexible, forward-thinking solutions that allow shops to save time and effort when managing funds and customer payments. Shop owners can share invoices and accept payments via text and email, enabling the customer to pay directly from their smartphone and pick up the vehicle when it is convenient for them. 

3. Meet customers where they want to be

Most auto repair purchases are surprise purchases that not even the best budgeter can anticipate. With integrated payments, Tekmetric caters to the customer’s budget and needs. Not the other way around. Repairs can be a stressful experience so why not make the customer’s life easier by allowing them to pay from home, from states away or in installments?

Offering Buy Now, Pay Later options, allows you to meet the customer where they are financially by providing installment payment options. When your customers need to get the repair done but do not have the budget to be able to pay for it in full in one sitting, BNPL meets your customer where they are financially while also ensuring the safety of the vehicle owner by getting the repair done. 

Digital payments are necessary for auto repair shops in the modern digital market. By implementing customer-centric digital solutions, you can significantly improve your shop’s customer experience by meeting customers where they are, reaching new ones and increasing your shop’s workflow efficiency. Making the last touchpoint of the experience more convenient creates a positive, lasting impression on the vehicle owner and creates trust with your repair shop – encouraging them to become a loyal customer and generate repeat business or referrals. 

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

FAQ

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Adjusting your pricing on parts to make a profit is pretty straightforward. But when it comes to labor times for auto repair shops…that’s where things can get a bit tricky. Yes, you need competitive labor rates, but you also need to keep those rates reasonable so you don’t scare off your customers with sky-high prices.

3 ways your shop can make more money on labor:

  1. By using a labor matrix
  2. By creating custom labor rates
  3. By applying a labor guide markup

Before we dive into the differences between these three methods for setting the best labor times at your shop, here’s a quick refresher on the one thing these methods have in common: the labor guide.

What is a Labor Guide?

A labor guide is like the gospel of labor times for auto repair shops. It tells you how long, on average, it takes to complete different types of repair work. Remember that the times listed in auto repair labor guides are averages, so it’s best to treat them as a starting point.

Factors That Can Affect Labor Times for Auto Repair Shops

Let’s take a look at some of the factors to consider when determining how much to mark up (or mark down) your shop’s labor rates.

Age of Vehicle Older vehicles are often trickier to fix, especially because finding parts for them can require a time-consuming hunt across parts suppliers. You can make up for the time spent hunting down uncommon parts by charging more for all repairs involving vehicles over a certain age.
Geographic Location Some areas lead to different types of repair challenges that can affect the time it takes for repairs. For example, shops in Syracuse, New York—the snowiest city in America—might find themselves working with cars that have rust, which can significantly add to the time it takes to remove or even clean certain parts.
Experience of Technician Chances are, you’re already paying experienced technicians a higher base salary or hourly rate. However, certain situations might call for cranking up those numbers, like if you really need to put their skills to the test for a tricky repair for a client who wants it done ASAP.
Customer Needs You can offer customers who need their cars back fast a “Pro Tech” rate, where your tech wraps up the job in record time. When you’re asking techs to complete a job faster than the time on the labor guide, and still do a good job, the customer is getting special service. Be sure to let customers know that speediness comes with a surcharge.
Relationship With Customers It’s a good idea to consider giving loyal customers a special rate as a token of appreciation. With that said, industry leaders advise sticking to your labor rates as much as possible, because if it becomes a habit, you risk financially harming your business.

How to Choose a Reliable Labor Guide

A reliable auto repair labor guide is foundational for your shop when you’re setting labor rates, so you’ll want to use a labor guide that stays up-to-date with the latest labor times in the industry. Just like many people use online directories instead of the Yellow Pages, many auto repair shops use digital labor guides that are constantly updated with the latest labor times.

When seeking out a digital labor guide, look for one that:

  • Offers consistent, comprehensive data on labor times from industry leaders, so you can set accurate labor rates that will keep your shop profitable
  • Adds labor times for new vehicles and jobs periodically, so your shop’s pricing can stay competitive
  • Integrates with your auto repair shop management software, so you don’t have to dig through multiple systems

With so many different aspects of running an independent auto repair shop, the teams that keeps cars moving through your bays and repair orders flowing through your workflow function best when they run like a cohesive unit.

Just think about your favorite sports team. The players share a common goal, whether it be scoring a touchdown or hitting a home run, and they encourage each other to always perform at their best.

But there’s usually one person on the team who everyone looks to for guidance and inspiration: the team captain. Every player in the auto repair industry is important—from the technicians to the parts managers. But service writers are like the team captain. They keep everyone on track.

If you’re ready to learn about a challenging but rewarding career where no two days are the same, you’re in the right place.

We brought our entire team together in person to kick off the year in Houston, and to say I was anything short of blown away would be an understatement.

We pride ourselves on being a remote-first company and we’ll continue to build our team remotely with the best talent from across the world, but there sure was something special about having everyone in person at the same time, in the same place, uniting around the same goals. 

When you have the opportunity to gather such an amazingly talented group in the same room, you’ll be surprised by what happens from the brainstorming, to the tactical collaboration – and well, all the fun we had together!

And this wasn’t all just about us. Because in the end, we’re here to support all the amazing independent auto repair shops that do great work every day getting cars back on the road.

Tekmetric's Dedication to Customer Obsession

A dozen of our customer shops were gracious enough to host folks across our teams as we spent time with shop owners, advisors, and technicians diving into the next batches of innovation the industry needs us to build into Tekmetric.

Running a repair shop is the background of everything we do. It's that partnership between Tekmetric and the auto repair shops that leverage the platform daily that enables us to build the absolute best tool for the job: running an independent auto repair shop.

As we continue to build Tekmetric, I’m especially keen to hear more than ever from technicians on this front.

At a time when industry continues to fight to keep up with challenges in educating, recruiting, and retaining top-quality techs, we’re taking a more intentional stance on the role a shop management system can play in helping your shop build and support the best team possible. Be sure to look for more from us throughout the year in this area.

We’ve always started anything we do at Tekmetric with a ‘customer obsession’ mindset – and I’m proud to extend this further down to the technician level this year.

As we grow, I’m also noticing how important it is to spend more of my time transferring real-world shop knowledge to every member of our team. In the early days, our Tekmetric office was the upper level of my shop, and I probably took for granted how easy it was for our team to observe the activities going on downstairs.

It's rejuvenating to now bring over 100 of our teammates to shops and immerse ourselves in the challenges our customers are facing. I smile when I see a well-drawn whiteboard with jobs listed out in columns, color-coded and sorted by promise time.

I think back on the early ideas that went into translating age-old management concepts into better versions of what are now standard features in Tekmetric.

I get even more joy when one of our new product managers builds well past my ideas, or I hear one of our onboarding managers asking a shop owner a question that even I’m not sure I would have thought of.

One thing is certain: the opportunity for our team to connect, collaborate, and brainstorm our next steps as a shop management system has ignited our drive for success. 

Driving for Success in 2024

We are growing and maturing in real-time, and the pace of our new thinking and new innovation is mind-blowing.

If you’re a current customer, our doors are always open. Feedback from front-line employees, technicians, service writers, general managers, and of course shop owners, has turned into some of our most powerful features and functionality.

If you want to connect with our team, we welcome you to email us at support@tekmetric.com to set up a time with our product team to discuss ways we can improve, or set up a 1:1 consultation if you need additional support.

And if you haven’t made the switch to Tekmetric yet, what are you waiting for? Book some time with one of our Shop Advisors here to talk through how we might be able to help your shop run better than it ever has.

From our team to yours – thanks for your continued trust and support as we grow Tekmetric. 2024 figures to be a great year for us and for the industry. If there’s anything I can personally do to help your shop measure up to another level, please reach out!

- Sunil Patel, Tekmetric Founder and CEO