Independent repair shops do not need the complexity of large chains, but they do need better structure around the numbers that drive performance, according to an industry leader.
Anders Gustafson, co‑founder of ShopLevers, said larger chains rely heavily on data to guide decisions and reinforce behaviour, even if the sheer volume of information can appear overwhelming.
“It is a little ridiculous just how much data and numbers and stuff that they are using,” Gustafson said.
Speaking at the MWACA Hi‑Tech Training and Vision Expo, he said the lesson for independent shops is not to replicate that complexity, but to focus on a handful of key metrics that provide clarity.
“We don’t need everything, but we need a balanced scorecard,” Gustafson said at the event in Kansas City.
He recommended shops track core measures such as car count, average repair order, gross profit and daily cash flow. Those figures provide a snapshot of whether the business is performing as expected but must be paired with deeper analysis to identify root causes.
“If something on my scorecard is not going the way that I want, try to figure out why,” Gustafson explained.
Many shop owners set revenue goals without understanding the underlying drivers needed to achieve them. Breaking goals into measurable components, he said, allows owners to manage performance more effectively.
“Goals are destinations, budgets are roadmaps,” Gustafson said.
Large chains also excel at linking performance metrics to incentives and behaviour, he added. By rewarding specific outcomes, they reinforce consistency across locations and teams.
“What gets rewarded gets repeated,” Gustafson said.
He also cautioned against viewing non‑operational functions such as marketing, finance and administration as expendable overhead. While those functions may not directly generate revenue, they are essential to building a scalable business.
“If it doesn’t touch a car, it’s just an expense,” he said, describing a common mindset among independents. “That is the trap that we get caught in.”
Instead, he encouraged shop owners to see those areas as part of the engine that drives growth, not as optional extras.
“These are functions,” Gustafson said. “They are part of the business.”
By adopting a more disciplined and structured approach to data, independent operators can make better decisions without needing the full infrastructure of a national chain.
“Take what we can from it,” Gustafson said, “and use it to our advantage.”
Image credit: Depositphotos.com
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