Must Have Revenue Streams for US Auto Repair Shops in 2024 and Beyond
Frédéric Baroin
Global Head of Automotive Business at Anyline
The auto repair industry is a $116 billion industry with over 168,000 businesses operating in the US within it. This industry employs 690,000 people. From 2016 to 2021, the number of businesses added to this was 0.5%, impressive in its own right. More so, the average auto repair shop generates $705,000 in revenue each year, supporting employees and their communities.
According to IMR and AutomotiveResearch.com, finding affordable parts and finding qualified technicians have remained the top challenges for US auto repair shops over the last couple of years. Yet, there is a changing dynamic in this industry, one that auto shop technicians must take into consideration if they are to see impressive results.
Tires Are a Missed Opportunity
About 25% of all tires that come into an auto repair shop need replacement, but many auto repair shops don’t focus on tire replacement, often targeting the oil change industry as their most profitable service. Yet, that is going to change and already is doing so as electric vehicles move further into the industry.
Tires for electric vehicles are much more expensive, but they also wear down about 20 to 30% faster than gas engine vehicles. That means a much higher frequency of tire changes is needed, including tire rotation for uneven wear.
Auto repair shops that don’t target this market could be missing a core opportunity to expand their shop in the coming years rather than see revenue drop to make the move to EVs.
How Can Anyline Increase Revenue for Auto Repair Shops?
Anyline can help any auto repair shop increase profitability as a one-stop solution for tire and vehicle checks. Utilizing our tools, it’s possible to optimize workflow and increase revenue. Here is how that can happen:
Increase tire sales – Anyline’s tire inspection scanner allows for rapid scanning of tires to determine which need to be recalled and whether tire tread is dangerously low. This is done with a simple scan of the tire that creates a report that outlines the condition of each tire. It’s objective and unbiased, helping customers trust it.
Increase productivity and speed of employees – Anyline’s tire scanning process is significantly faster than the manual entry of data, allowing for tires to be scanned 260% faster than using a tread depth gauge and writing down the information.
If an auto repair shop is servicing 1 million vehicles a year, it can save $850,000 and 28,333 hours by switching to Anyline. Imagine if those 28,333 hours were spent servicing more vehicles. How much money could a business increase its revenue by? Find out by using the ROI Tire Tread Calculator!
Increase the up-sell – Surveys found that 54% of American drivers want a digital vehicle inspection tool that allows them to see recommended repairs and authorize them, while 53% want communication through text. Anyline can help with an integrated native app or web solution that allows shops to digitize the vehicle and tire inspection process faster.
Consider this scenario: A potential customer visits for an oil change, and a mechanic uses the app to inspect tires, which shows that the vehicle doesn’t need new tires just yet, but will in about six months. Digitizing the facts and figures for the customer and then sending that information to the client in a reminder in six months helps to bring that customer back in. More so, the customer has factual information that their interested in reading and that’s believable.
Now Is the Time to See Change
Tires are a big part of a successful auto repair shop in the future, especially as EVs take over. Shifting to digitalizing information from tires reassures customers, provides more unbiased information, and increases not just the speed of work but also the profit margins for companies. Today’s auto repair shop that wants to improve profits for the future will need to make a move to tire service, but doing so with Anyline can make the entire process far more efficient and effective, even reducing labor costs while improving customer satisfaction.
