- The specialist said that during a recession, “aftermarket is very resilient overall” and auto repair software tends to be resilient in a downturn. They said that the auto repair shop software TAM is approximately 250,000 independent shops spending USD 500-600 USD/month on software.
- They told us nearly 80% of auto shop repair spend on software tends to be critical vs discretionary. Critical modules are typically management systems, estimation software and repair information, we were told.
“We have definitely seen a demand and a need for [auto repair] software all across, whether it is inside the shop for the technicians or to drive customers into the shop. It has, I think, been a big growth area in the aftermarket.”
- Meanwhile, the specialist said that discretionary spend is related to customer relationship management tools such as online advertising. They believe that in a downturn, these tools could be cut. We heard that Mitchell 1 and Alldata lead the sector in estimating modules for labour and part numbers.
- The specialist added that Shopmonkeys and Tekmetrics have built payment solutions into their software and that these modules are resonating with customers. “The more customers they can get under their umbrella, the better pricing for the swipe charges,” the specialist concluded.
For more human insights on auto repair shop software trends, click on the transcript below.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
For any enquiries, please contact firstname.lastname@example.org