For many shop owners, average repair order(ARO) feels like a stubborn number. Car count fluctuates, marketing changes, and there may be shifts in staffing, but ARO remains the same. When that happens, it can be easy to infer that customers simply aren’t willing to spend more. But stagnant ARO is almost always a process issue, not a customer issue. The shops that consistently grow ARO focus less on selling and more on how work is identified, communicated, and followed up with the customer. These five fixes address the most common breakdowns holding ARO and holding shop profitability back.

• Fix #1: Understand What Impacts Average Repair Order
• Fix #2: Use Inspections to Surface High-Value, Legitimate Work
• Fix #3: Train Service Advisors to Present Value, Not Just Price
• Fix #4: Stop Losing Revenue on Declined Work
• Fix #5: Identify Workflow Bottlenecks and Use Data to Fix Them
• Turning Small Repairs Into Long-Term Relationships

Fix #1: Understand What Impacts Average Repair Order

Average repair order is the average dollar amount generated per repair order and is one of the most important indicators of shop profitability. At its simplest, ARO is calculated using a straightforward formula:

Average Repair Order = Total Sales ÷ Number of Repair Orders

While the formula itself is simple, what it represents is not. Average repair order is the result of dozens of small decisions made throughout a visit—how thoroughly vehicles are inspected, how clearly recommendations are explained, and whether declined work is tracked or forgotten. When one of these breaks down, ARO suffers quietly.

The formula also doesn’t show why ARO is rising or falling. A flat ARO number won’t tell you if inspections are inconsistent, if advisors are struggling to communicate value, or if declined work is followed up on. That’s why high-performing shops treat ARO as an outcome of strong systems, not individual performance. When inspections are consistent, advisors communicate clearly, and workflow timing is aligned, ARO increases naturally without pressure or pushback from customers.

Fix #2: Use Inspections to Surface High-Value, Legitimate Work

You can’t sell what you don’t find. Shops that rely on rushed or inconsistent inspections leave real revenue on the table every day because needed work isn’t identified or clearly documented. Standardized digital vehicle inspections help ensure every vehicle receives the same level of attention, regardless of who’s working on it, how busy the day feels, or how experienced the technician is. This consistency removes guesswork and reduces missed opportunities.

More importantly, inspections that include photos, videos, and technician notes help customers see the need for repairs instead of relying solely on verbal explanations. Visual documentation builds understanding and credibility, making recommendations feel informative rather than sales-driven. AutoVitals’ Digital Vehicle Inspection tools support this level of consistency and transparency, making it easier to uncover legitimate maintenance and safety work that meaningfully increases average repair order while maintaining customer trust.

Fix #3: Train Service Advisors to Present Value, Not Just Price

ARO can stall at the service counter. When recommendations are presented as a list of costs instead of a clear story, customers default to saying no. Service advisors need training that focuses on explaining why a repair matters for their vehicle, not just what it costs.

Effective advisors connect recommendations to safety, reliability, and long-term ownership. They explain urgency without fear tactics and answer questions with confidence. Shops that invest in ongoing service advisor training consistently see higher approval rates and stronger shop profitability.

Fix #4: Stop Losing Revenue on Declined Work

Declined work is one of the biggest hidden leaks in ARO. Many customers decline work because the timing isn’t right, not because they don’t trust the recommendation. A structured follow-up process allows shops to remind customers about declined services so the work can be completed when the timing is right.

Using a CRM to track declined jobs and automate thoughtful follow-up allows shops to recover revenue weeks or even months later. By storing declined recommendations, inspection history, and previous customer interactions in one place, a CRM gives service advisors clear visibility into what follow-up is needed and when.

AutoVitals’ CRM tools connect directly to digital vehicle inspection data, making follow-up more relevant and consistent. Instead of relying on generic reminders or promotions, shops can send targeted emails or text messages that reference the customer’s original inspection, include photos or notes from the technician, and clearly explain which services were previously declined. Pairing inspection history and personalized messaging is a natural extension of customer care rather than a sales tactic, helping shops re-engage customers with confidence and increase average repair order over time.

Fix #5: Identify Workflow Bottlenecks and Use Data to Fix Them

Workflow issues quietly limit ARO by disrupting the timing and flow of a repair order. When inspections happen too late, service advisors are forced to rush explanations to customers. When approvals are delayed, technicians sit idle waiting for the next job. Over time, these breakdowns reduce the amount of work identified, approved, and completed during each visit, limiting both revenue and profitability.

Reviewing data around inspection completion, approval timing, and declined work trends helps shops pinpoint exactly where workflow is breaking down. AutoVitals’ Workflow Management tools give shops visibility into each stage of the repair process, helping teams keep inspections, approvals, and production moving in the right order so opportunities to increase ARO aren’t lost.

Turning Small Repairs Into Long-Term Relationships

Shop owners know that not every visit will result in a record-breaking ARO, and that’s okay. Small approvals, when handled well, build trust that keeps customers coming back. Over time, those relationships lead to higher lifetime value and stronger profitability.

ARO growth isn’t about pushing harder. It’s about building better systems that support consistent, transparent service. Book a demo with AutoVitals to see how the right tools can help your shop increase ARO while driving long-term profitability.