What should I track in my first year running an auto repair shop?

Once you own the shop, the sale is behind you and the numbers are yours. A new owner often feels busy but cannot say whether the shop is doing better or worse than before. A short list of signals, checked on a schedule, gives you something firmer than a feeling. Start simple and add to it only when you know what you will do with the answer.

Weekly signals

Each week, count the vehicles that came in, and write down how many were new customers and how many were repeat. Compare the hours your technicians were paid with the hours you billed. A gap that keeps growing usually points to slow dispatching, waiting on parts or work done without being charged. Note which bays sat empty and when, since idle bays are a cost you can sometimes fix.

Monthly signals

Once a month, review comebacks and warranty work: jobs that returned because the repair did not hold. Look for patterns by technician, by type of job or by supplier. Check activity on fleet accounts, because a quiet fleet customer may be about to leave. Review parts returns and unreturned cores to see whether money is leaking at the parts counter.

Setting it up from day one

Use the shop management system to pull these reports, or keep a simple sheet if it cannot. Ask the previous owner what they watched and why, and use their records as your starting point. The method in how to read labour, parts and tire sales helps you split your revenue lines the same way every month.

Spotting drift early

Write down what normal looks like after your first couple of months. Then react to changes, not single bad days. Talk to your technicians about what they see, as covered in keeping technicians after buying a shop. Share your reports with your accountant, who can tell you which numbers matter most for your shop.