Thanks to our Partners, Shop Boss and AppFueled

You might be tracking average repair order, car count, even gross profit, but are you looking at your average estimate? In this episode, Brian Walker sits down with coach and shop owner Chris Cotton to dig into what may be the most underutilized KPI in the auto repair industry. Chris lays out real numbers, explains why average estimate is a crystal ball into your sales process, and even shares the exact changes his shop made to 4x estimates and drive gross profit through the roof, all in just one year.

If you’ve ever asked yourself “Why aren’t my tickets higher?” or “Do I really need another service advisor?” this is the episode for you. Plus, you’ll hear actionable advice on how to move the needle on closing ratios, the power of DVI, and why the right software may be the best investment you’ll ever make.

Hit play and discover why average estimate might be the missing metric in your shop's growth strategy.

Show Notes with Timestamps

1. Introduction and Sponsor Acknowledgements (00:00:09) Host introduces the podcast, guest Chris Cotton, and thanks sponsors.
2. Setting the Topic: The Most Important KPI You're Not Tracking (00:01:14) Discussion begins on the underutilized KPI: average estimate written by service advisors.
3. Why Average Estimate Matters (00:01:47) Chris explains why average estimate is overlooked and its importance in diagnosing low average repair orders.
4. How to Track Average Estimate (00:03:36) Discussion on how shop management systems track average estimate and the need to analyze by advisor and shop.
5. Chris Cotton’s Shop Background and Context (00:04:23) Chris shares his dual role as coach and shop owner, and sets context for the numbers discussed.
6. Differences Between Shop Types and KPIs (00:06:07) Explains how KPIs differ between general, specialty, and quick lube shops, and the impact on labor hours.
7. Shop Operations: Car Count, Bays, and Staffing (00:07:25) Chris details his shop’s car count, number of bays, technicians, and unique seven-day schedule.
8. Process Improvements and Estimate Presentation (00:09:29) Describes improvements in hours presented on estimates and the impact of digital vehicle inspections (DVIs).
9. Leveraging Technology for Deferred Work (00:10:26) How CRM tools and online scheduling help sell deferred work and improve customer engagement.
10. Transparency and Full Disclosure in Estimates (00:11:20) Chris’s philosophy on presenting all findings to customers for informed decision-making.
11. What is a Good Average Estimate? (00:13:19) Chris shares a rule of thumb for average estimate based on vehicle mileage and shop type.
12. Impact of Raising Average Estimate on Revenue (00:14:51) Chris details how increasing average estimate improved average repair order and overall revenue.
13. Closing Ratio Challenges and Training (00:15:46) Discusses the drop in closing ratio after raising estimate size and ongoing training to improve sales.
14. Staffing and Writing Estimates: Capacity and Care (00:17:04) Advice for shops understaffed or hesitant to write full estimates; importance of customer care.
15. Legal and Moral Obligation to Inform Customers (00:18:14) Discusses legal cases and the obligation to inform customers of all vehicle issues.
16. Gross Profit and Other Overlooked KPIs (00:21:06) Chris highlights the importance of tracking gross profit dollars, labor hours per ticket, and closing ratio.
17. Strategies to Improve Closing Ratio (00:23:01) Focus on training, hiring the right people, and offering financing to boost closing rates.
18. The Value of Good Shop Management Software (00:23:57) Emphasizes the ROI of robust shop management systems and the pitfalls of handwritten tickets.
19. Preparing for Business Sale and Transparency (00:25:34) Importance of accurate records and transparency for business valuation and sale.
20. Choosing the Right Shop Management System (00:26:16) Advice on selecting systems with robust reporting and avoiding unnecessary add-ons.
21. How to Connect with Chris Cotton (00:26:39) Chris shares his contact information and resources for further learning.
22. Podcast Wrap-Up and Additional Resources (00:27:07) Host promotes Chris’s podcast series and the Automotive Repair Podcast Network app.

How To Get In Touch

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Email Us Podcast Questions or Topics

Lagniappe (Books, Links, Other Podcasts, etc)

The Weekly Blitz Podcast

AutoFix Auto Shop Coaching

TechMetric

AutoOps

Thanks to our Partners, Shop Boss and AppFueled

This episode is sponsored by Shop Boss. You know, other shop management software makes you work, but Shop Boss works for you.

AppFueled at appfueled.com. “Are you ready to convert clients to members? AppFueled™ specializes in creating custom apps tailored specifically for auto repair businesses. Build your first app like a pro.”

The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/

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