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Auto Repair Shop Term

Average repair order (ARO)

Definition

The average dollar value of one customer visit, the core throughput number for a repair shop.

Why It Matters

This times car count is the whole revenue engine, so check whether the average is healthy or propped up by a handful of engine jobs that will not repeat. The more useful question is what happens to declined work: a shop that records recommendations and follows them up has revenue already sitting in its own system, and one that does not is leaving it with the customer. That gap is the cheapest improvement available after closing.

Where to Go Next

More Terms in Auto Repair Shop