Leveraging KPIs to Keep Your Truck Repair Shop Profitable Featuring Eddie Lawrence of Mobile Transport Repair

Running a truck repair shop comes with its fair share of tough decisions. Should you hire another technician? Adjust your labor rates? Change your marketing strategy? The strongest leaders don’t guess their way through these challenges, they let data guide them. A Data-Driven Leader knows that the numbers tell a story and reveal the path to overcoming any roadblock.

 

Consider if some of these scenarios hit close to home… The shop seems busy, but profits aren’t where they should be. Your technicians are working long hours, yet the numbers show they aren’t billing enough. Customers are hesitant, approving only the most urgent repairs while deferring preventative maintenance. Frustration creeps in—it’s easy to blame the economy, competition or even your team. But strong leaders don’t let emotions drive their decisions. Instead, they turn to the data!

 

One seasoned shop owner who understands this well is DRIVE client Eddie Lawrence, owner of Mobile Transport Repair in Colorado Springs, CO. With over 25 years in business, Eddie knows that you can never rely on emotions or assumptions to run your business. Despite economic uncertainty and shifting customer behaviors, Eddie has kept his shop profitable by focusing on three critical metrics: Average Repair Order (ARO), Gross Profit Percentage, and Technician Efficiency. His ability to interpret these numbers and take action has made all the difference.

 

Reframing Preventative Maintenance to Increase ARO

For many truck repair shops, ARO (Average Repair Order) is one of the most important metrics, reflecting the value of each repair job. A high ARO means customers are authorizing more services, while a low ARO can indicate that essential repairs are being deferred.

Eddie saw firsthand how economic caution led many fleet owners to tighten their budgets, focusing only on the most urgent repairs. “We saw lowered spending thresholds and caps on their maintenance budgets.”

The challenge here is that WE know that deferred maintenance doesn’t save money, it leads to bigger, costlier problems down the road. So how can you communicate that to customers and help them find a solution? Eddie knew that part of the strategy should include adjusting how his team communicated with customers, “Customer communication is the key factor in building trust,” he emphasized.

Instead of overwhelming them with long lists of necessary repairs, Eddie took a new approach: breaking down recommendations into manageable, prioritized steps. By making preventative maintenance feel less intimidating and more like a smart, strategic investment, he was able to increase customer buy-in and ultimately boost his shop’s ARO.

 

For shop owners looking to improve ARO, consider:

• Training service advisors to use a needs-based selling approach.  Teach them to ask the right questions and confidently present repair recommendations with a clear breakdown of priority.
• Offering flexible solutions by presenting options, not ultimatums. Suggestions may include staggered repairs over time, to ease customers into necessary maintenance.
• Using real-world comparison language that people understand (like the dentist analogy—small checkups now prevent painful, expensive problems later). Remember that customers are not technicians.

 

Focusing on Gross Profit

Gross profit percentage is a direct indicator of how well a shop manages costs while maintaining strong pricing. Eddie realized that his mobile services had better profit margins than many in-shop repairs, so he leaned into that strength.

“We saw a growing demand for mobile fleet service, and it helped keep work flowing into the shop,” Eddie explained. Rather than allow his competitors to slip in and fill the gap, Eddie began scaling up his mobile side and increased his outside sales and marketing efforts to draw in even more fleets. By strategically shifting resources, he created an action plan to increase his gross profit percentage.

 

The Technician Efficiency Factor: Are You Maximizing Productivity?

One of the most overlooked yet critical metrics in a truck repair shop is technician efficiency, the ratio of billed hours vs. clocked hours. It’s easy to assume that a busy shop is a productive one, but remember, a Data-Driven Leader doesn’t assume! Without tracking this number, you could be losing valuable revenue.

Eddie closely monitors technician efficiency to ensure his team is working at peak performance. If billed hours fall short, he digs deeper:

• Do his techs need more training to improve their speed and accuracy?
• Are they motivated and engaged, or do they need an incentive?
• Is the shop workflow optimized to prevent unnecessary downtime?

To keep technicians performing at a high level, Eddie implemented a bonus program that rewards efficiency and quality work. This not only boosts productivity but also increases job satisfaction, a crucial factor in retaining skilled workers.

For shop owners, improving technician efficiency starts with:

• Tracking each tech’s billed vs. worked hours.
• Identifying workflow bottlenecks that slow down repairs.
• Incentivizing high performance with rewards or bonuses.

 

Marketing That Works: Investing in Relationships, Not Just Ads

Another key step Eddie has taken is adjusting his marketing strategy. The numbers proved that relying on traditional advertising like TV and radio ads was not working as it once did. Instead, he focused on outside sales, promo materials and social media marketing. It also was important to Eddie to get the word out about ways that MTR stands apart in their services. “We made an effort to highlight the specialty services we offer that fleets weren’t aware of. We showcased these services on our website, social media and in our press materials,” Eddie shared.

This shift has proven to be highly effective. By prioritizing personal connections and targeted marketing, Eddie is securing more fleet accounts and steady repair jobs, reducing the unpredictability of customer traffic.

 

For shop owners looking to refine their marketing strategy, consider:

• Tracking ROI on all marketing efforts—where are leads actually coming from?
• Shifting to direct outreach and outside sales to build repeat business.
• Strengthening social media presence to engage potential customers.

 

Strong Leadership Means Transparency with Your Team

A true Data-Driven Leader doesn’t just analyze numbers in isolation, they share insights with their team to create alignment and trust. Eddie ensures that his managers understand exactly how KPIs drive decision-making. By being transparent about the numbers, he builds confidence and accountability within his staff. When everyone sees the bigger picture, they’re more invested in the shop’s success. If you’re tracking KPIs but not communicating them with your team, you’re missing an opportunity. A shared understanding of key metrics empowers employees to contribute to solutions.

 

Final Thoughts: The Roadmap to Profitability is in Your Data

As truck repair shop owners navigate changing market conditions, one thing remains constant: the numbers don’t lie. Whether it’s increasing ARO by improving customer communication and training your service advisors, boosting gross profit by shifting to high-margin services or optimizing technician efficiency, the data provides the roadmap to success.

Strong leaders don’t rely on assumptions. They analyze, adapt and act. Like Eddie, you can use KPIs to pinpoint opportunities, drive profitability and lead with confidence, even in changing times. So take a look at your numbers today. What are they telling you? And what’s your next move?

 

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Brittany Crow, DRIVE