In  Episode 192 of Digital Talk Shop Radio, industry professionals Roy Foster of  Roy Foster’s Automotive and Jaron Kleber of  Repair Shop of Tomorrow discussed the key performance indicators (KPIs) that can transform auto repair shop operations. They shared their expertise on leveraging KPIs to drive shop success and how tools like  AutoVitals make all the difference. 

• Why KPIs Matter for Shop Growth
• What KPIs to Track 
• How AutoVitals Enhances KPI Tracking
• Final Thoughts

Why KPIs Matter for Shop Growth

Tracking performance metrics provides actionable insights that can directly impact your shop's efficiency and bottom line. As Jaron Kleber noted, "You can't manage what you don't measure." Monitoring and analyzing KPIs allows shop owners to make data-driven decisions that will result in consistent growth. Roy Foster stated, "We even talk about the sales numbers each week as we're able to educate our team on why we have to get this, why we have to have aggressive goals, and what's in it for them. They appreciate that." Both emphasized that monitoring KPIs isn't just for leadership—it's critical for team alignment and consistent business health.

What KPIs to Track 

The episode highlighted several must-track KPIs that every auto shop should prioritize. Here are the main takeaways:

1. Technician Productivity and Efficiency

One of the first metrics discussed was  technician productivity, which measures how much billable work a technician completes compared to the hours they are clocked in. “Productivity has a direct reflection, of course, on your top-line sales, but even more of a financial impact on your bottom-line net,” Kleber explained. Monitoring productivity helps ensure that a shop is balancing labor costs and profitability. 

2. Effective Labor Rate

Shop owners should also measure the effective  labor rate, which measures the actual labor revenue collected per hour worked compared to the shop's posted labor rate. In the episode, Roy Foster emphasized the importance of using real data rather than guessing or copying local competitors:

“When I talk to guys, they’re calling the guy down the street finding out, well, what’s Joe charging? Or they’re afraid I can’t charge that much when, in reality, we need to. At Repair Shop Tomorrow, we actually have tools and calculators to tell us exactly what our labor rate should be.”

By measuring the effective labor rate and tying it to productivity, shop owners gain a clear picture of profitability. Kleber explained, “If my shop is running at 90% productivity, I might need to be at $150 an hour on my effective labor rate, but if my shop is only 60% productive, guess what? Now that employee’s effective labor rate needs to be 185, 190 an hour.” This metric is essential for pricing strategies and ensuring a shop meets its financial goals with precision.

3. Hours per Repair Order

A crucial KPI is the average number of labor hours billed per repair order.  Foster said, “We like to see at least three hours per ticket.” Achieving that requires thorough inspections, proper communication, and leveraging  tools like AutoVitals. He said, “If we're just doing what’s coming in, we’re never going to achieve that. But what we need to do is inspect every car thoroughly.” Tracking the average number of labor hours ensures that shops conduct thorough inspections and communicate the value of necessary repairs to customers.

4. Customer Retention and Return Rates

Customer retention can make or break the long-term success of your shop. Foster stressed the importance of tracking return rates and building strong relationships with customers through consistent communication and stellar service to keep them coming back. When customers have a reliable experience at your shop they’re more likely to return for their next service. Using tools like CRM software to send automated service reminders, email and text campaigns, and review and reputation management can improve customer loyalty and retention.

5. Inspection Rate and Inspection Sent Rate

A strong inspection process is about following through and getting information into the hands of the customer. Foster called out a frequent issue he sees when coaching other shops, “That’s a pet peeve I have coaching. We see shops that do a high percentage of inspections, but a very low percentage of inspections being sent to the client.” He emphasized that a thorough inspection and follow-through are essential to not only maximize hours per ticket but to build trust with customers.  “People want to know what’s wrong with their car. It’s not a high-pressure thing. It’s your car, your choice, your money, but it’s our duty to provide you with all the information.”

How AutoVitals Enhances KPI Tracking

AutoVitals empowers shop owners to monitor and improve these KPIs through its all-in-one Business Control Panel (BCP), a real-time performance dashboard designed to make tracking metrics simple, visible, and actionable. This centralized view of all your shop’s key metrics makes it easy to:

• Automate technician productivity and efficiency tracking 
• Evaluate inspection rate and inspection sent rate
• Measure average repair order 
• Analyze advisor performance 
• Monitor labor hours per repair order 

Access to these insights helped Foster expose bottlenecks in his shops. “My advisors were overwhelmed. Now we have an advisor for every two techs.” That one change helped push his shop to consistently hit three hours per ticket. AutoVitals BCP can help your shop make data backed decisions by bringing all KPIs into clear focus. 

Final Thoughts

By leveraging digital tools like AutoVitals and focusing on key performance metrics, shop owners can make informed decisions that drive long-term success. 

When asked to share one piece of advice, Foster didn’t hesitate:

“Be committed to wanting to change and be willing to go out of your comfort zone. If you’re too comfortable, you’re not growing. And if you’re not growing, you’re too comfortable.”

Kleber added:

“Review where you currently are and then put a plan together and work with your team to decide where you want to go.”

Schedule a demo to learn more about how AutoVitals can help you take your shop to the next level.