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How to Increase ARO Through Value-Driven Service

Posted by BayIQ on August 18, 2025 | 0 Comments

Improving a tire shop’s average repair order (ARO) requires a smart sales strategy.  ARO is a critical performance metric that reflects how much revenue your shop earns per vehicle visit. Increasing ARO means increasing the value of every customer interaction without compromising trust. This blog explores how tire and auto service shops can ethically increase ARO by using inspection data, educating customers, and training service advisors on high-integrity sales techniques.

What Is ARO and Why Does It Matter?

ARO stands for Average Repair Order. It's calculated by dividing total sales by the number of repair orders over a given time period. For example, if your shop brings in $100,000 in a month from 500 repair orders, your ARO is $200.

A higher ARO typically indicates your team is identifying and completing more services per visit. This doesn't mean overselling—it means fully serving the customer’s needs. When a technician performs a complete inspection and your service advisor communicates the findings effectively, customers are more likely to approve needed services. That’s how you increase ARO and profitability: by providing thorough care and giving customers the opportunity to make informed decisions.

Present Services with Inspection Data, Not Pressure

One of the most effective ways to increase ARO is to anchor every recommendation in real data from your digital vehicle inspection (DVI). When a customer sees photos of worn brake pads or low tread depth, they aren’t just taking your word for it. They are seeing the evidence for themselves. 

Transparency creates trust. Use clear visuals and technician notes to explain what the issue is, why it matters, and what could happen if it’s ignored. For example:

  • “Your tires are at 3/32” tread depth. At this level, braking performance drops significantly in wet conditions, increasing your risk of skidding.”
  • “Your air filter is clogged with dirt and debris. This can reduce fuel efficiency and engine performance. Replacing it will help your engine breathe better.”

This approach will help build long-term credibility that leads to higher auto service sales and customer retention.

Educate, Don’t Pressure

Nobody enjoys being pressured into a sale, especially when it comes to vehicle repairs. Customers want to understand why a service is needed and what it will do for them. This is why education must be central to every sales interaction.

Instead of saying “You should replace your tires today,” reframe the message:

  • “Based on your tread depth, your tires are near the legal minimum. We recommend replacement soon for your safety, especially if you drive in rain or snow. Would you like us to show you some options?”

By educating customers with facts and giving them space to decide, you position your shop as a trusted advisor. This leads to more service approvals, better customer relationships, and ultimately a steady increase in ARO.

Train Advisors on Ethical Sales Techniques

Your service advisors are the bridge between your technicians and your customers. If they’re not trained in clear, patient communication, even the most thorough inspections won’t result in higher ARO.

Here are practical tips for training advisors on effective and ethical sales techniques:

  1. Teach the “Why” Behind Every Service
    Ensure advisors understand the mechanical and safety reasons for every recommendation. They should be able to explain it in simple, jargon-free language.
  2. Roleplay Real Scenarios
    Conduct roleplaying sessions that simulate real interactions, such as handling objections, presenting tire replacement options, or explaining brake wear. The goal is to refine tone, clarity, and empathy.
  3. Use a Consistent Process
    Establish a standard procedure for reviewing DVI results with customers. A consistent approach helps avoid missed opportunities and ensures every service is presented.
  4. Incorporate Customer History
    Training advisors to reference past visits, such as previously deferred services, can spark productive conversations and help customers stay on top of maintenance.
  5. Reinforce Active Listening
    Encourage advisors to ask questions and listen actively. Understanding a customer’s driving habits, budget concerns, or timeline can help tailor recommendations in a way that respects their needs.

Aligning Service with Long-Term Tire Shop Profitability

Improving tire shop profitability isn’t about turning your service advisors into aggressive salespeople. It’s about aligning your team’s processes, communication, and customer experience to help clients take better care of their vehicles.

When inspections are thorough, presentations are transparent, and sales techniques are rooted in trust, customers feel supported—not sold to. That’s how you drive more revenue per visit while strengthening loyalty.

The result? A consistent increase in ARO, improved reputation, and a tire shop that customers recommend to friends and family.

Conclusion

Increasing ARO requires a value-driven approach that prioritizes transparency and customer education. By anchoring recommendations in real inspection data and empowering service advisors with the right training, your tire shop can grow its profitability without sacrificing trust.

Every vehicle that enters your bay is an opportunity to educate, serve, and build lasting relationships. Focus on delivering value, and the numbers will follow. Schedule a demo today to see how BayIQ can help you turn those opportunities into increased ARO and long-term customer loyalty.