An auto repair estimate approval rate is the percentage of repair estimates that customers approve after receiving them. In simpler terms, it shows how often a customer agrees to the repair costs you provide.
This rate is crucial for repair shop owners because the higher the approval rate, the more repairs you complete. It leads to increased revenue and profitability. If many estimates are rejected, it means potential income is lost. Improving your auto repair estimate approval rate helps grow your business. It ensures that both you and your customers are satisfied with the repairs.
To learn more about creating accurate repair estimates, check out “What is Auto Repair Estimating Software.“
Common Reasons Estimates Get Declined
It’s critical to know the reasons behind consumers’ unexpected rejection of vehicle repair quotes. This is often caused by a number of common problems, which are fixable and increase the auto repair estimate approval rate. Here are some common reasons:
Lack of Clarity or Transparency
One reason estimates get declined is a lack of clarity or transparency. If a customer doesn’t fully understand the estimate, they feel unsure about agreeing to it.
For example, if you use technical jargon or don’t explain what each part of the repair involves, 20%-30% of customers reject the job, because they worry about hidden costs.
Clear and simple explanations will help customers feel more confident in your estimates and less likely to decline them.
Poor Communication
If you don’t clearly explain the repair process or the cost breakdown, 25% of customers feel confused or frustrated. Sometimes, estimates are given without a proper discussion, which leads to misunderstandings.
Regular communication with your customers, whether by phone or email, helps build trust and makes them more likely to approve your estimate.
Unnecessary or Overpriced Services
Customers decline your estimate if you provide services that are unnecessary or too expensive. They opt to shop elsewhere if they believe they are being charged for unnecessary services or if the costs are excessive in comparison to comparable businesses.
Therefore, it’s crucial to offer only the services that are required at reasonable costs. This improves the image of your business in addition to raising your approval rate.
Proven Best Practices for Improving Approval Rates
Make the process simple, clear, and easy for your clients when it comes to obtaining approval for auto repair estimates. The aim is to maximize the probability that your repair estimates will get accepted by making sure everything is transparent and reliable.
Here are some proven practices with real-time examples that can help improve approval rates for your auto repair shop.
Itemize All Costs and Avoid Surprises
One of the biggest reasons for estimate rejection is unclear costs. To avoid this, clearly itemize all costs, including labor, parts, and any extra charges.
For instance, a customer comes into your shop with a check engine light on. Instead of simply saying, “We need to replace the engine control module (ECM) for $1,000,” you break it down into parts and labor: “$600 for the ECM, $200 for labor, and $200 for diagnostic services.”
This helps the customer feel confident in the estimate and avoids any surprises in the final invoice.
For example, Pep Boys in the U.S. is known for itemizing all their costs in detail, which customers appreciate for the clarity it provides. Clear, upfront pricing like this improves approval rates because customers trust that they’re not going to face any hidden fees later.
Use Digital Vehicle Inspections
A great way to build trust and improve approval rates is by offering digital vehicle inspections. For example, Carwise, a platform that partners with auto repair shops, allows technicians to send customers digital vehicle inspections that include photos or videos of needed repairs.
By offering digital vehicle inspections, you show transparency, which helps increase the chances of approval. Christian Brothers Automotive uses digital inspections, providing customers with photos and detailed reports directly to their phones. This increases confidence in the service and helps them make quicker decisions on approval.
This method not only builds trust but also helps with faster decision-making, improving approval rates.
Offer Convenient Approval Channels (SMS/Email Approvals)
In today’s fast-paced world, convenience is key. Offering customers a quick way to approve their estimates via SMS or email can improve approval rates.
For example, Midas Auto Service Experts offers customers the option to approve repair estimates through a simple text or email link. This means that instead of waiting for the customer to come in or call, they can approve the estimate from the comfort of their own home or office.
This convenience eliminates delays, making it more likely that customers will approve the work and get their car repaired sooner.
Follow-Up Reminders and Communication Techniques
Sometimes customers need a gentle reminder to approve an estimate. Following up with your customers in a polite, friendly manner increases approval rates.
For example, Firestone Complete Auto Care regularly sends friendly reminders to customers through email and text, gently nudging them to approve their estimates after they’ve been given. This approach ensures the customer knows that you’re waiting to proceed and also opens the door for any questions they have.
Therefore Torque360 is an excellent software solution for your shop to send automated reminders to your customers via SMS and email. This streamlined communication can lead to quicker decisions, improving approval rates.
How Estimating Software Helps
Getting approval for estimates quickly is important. Torque360 helps you make this process easier. It simplifies approval by sending estimates through SMS and email, so customers don’t need to be in the shop to approve the work. Once the estimate is sent, customers can approve it directly from their phone without waiting.
Get Professional Digital Estimates
One reason that auto repair estimating software makes this process so simple is that it generates professional-looking digital estimates. These estimates are clear, easy to read, and contain all the details needed for customers to make decisions quickly.
When estimates look neat and accurate, it’s more likely that the customer will approve the work right away. This helps increase the auto repair estimate approval rate, meaning more estimates get approved faster.
Easy Payment Solutions
This software is integrated with the easy-to-use payment solution “TorquePay“. After the estimate is approved, customers can easily pay online through secure payment methods. This makes the whole process smoother for both the shop and the customer. No more waiting for checks or handling cash!
Wrapping up!
Improving your auto repair estimate approval rate is essential for growing your business and increasing profitability. By addressing common issues like unclear costs, and poor communication, and offering convenient approval channels, you significantly enhance approval rates. Implementing digital solutions like Torque360 not only streamlines the approval process but also boosts customer trust and satisfaction. Ready to take your approval rates to the next level? Book a demo today!
