Auto repair shops across North America commonly experience revenue drops at specific times of the year. While some shops are busier during winter (e.g., those handling cold-weather automotive and snowmobile work), others slow down significantly in that same period (e.g., motorcycle-only specialists). Overall, our study finds that shops see an average 32% decline in revenue during their respective “slow seasons.” For single-service shops, these drops typically range from 45%–60%, but in extreme cases—such as snowmobile-only or motorcycle-only specialists—the decline can reach 70%.
As an authorized TEXA dealer, we have observed how the right multi-brand diagnostic tools help stabilize these fluctuations. Our research team collected and analyzed data from 250 independent repair shops between 2021 and 2024, with annual revenues between $500,000 and $2.5 million. While most of our data runs through 2023, partial figures from early 2024 were also included to capture ongoing trends. In the discussions below, we distinguish shops primarily serving standard passenger vehicles from those more specialized (e.g., motorcycles, snowmobiles, marine engines).
We selected these 250 shops from diverse climate zones and normalized the data to account for local economic conditions, competition, and market factors—ensuring that the results focus on how service expansion and technology investments affect revenue volatility.
We also analyzed point-of-sale data, appointment scheduling records, and seasonal service-mix tracking. Some shops expanded services during the study (our “expansion group”), while others maintained their traditional focus (our “control group”).
Within each group, some shops expanded into powersports or marine during the study, while others did not.
Key Finding: On average, across the 250 shops, revenue drops by 32% during “slow seasons.” However, the specific slow season varies:
Because each shop has a different “peak” and “off-season,” the 32% overall figure is a weighted average. Single-service shops generally face a 45–60% revenue dip, and in certain highly specialized cases (e.g., snowmobiles or motorcycles only), it can climb to 70%. By contrast, diversified shops typically see smaller dips around 15–25%, and some advanced, fully diversified shops reduce dips to around 12% after ramp-up.
Certain services see notable declines in their respective off-seasons:
Meanwhile, shops focusing exclusively on motorcycles can see 60% revenue drops in winter, while snowmobile-only specialists can face 70% drops in summer. These extremes underscore the importance of diversifying service lines if local demand is highly seasonal.
Among surveyed shops, traditional approaches include:
Although these measures reduce overhead in the short term, they can lead to long-term issues such as losing skilled technicians or eroding customer satisfaction. Our data suggests a more sustainable path: multi-vehicle (or multi-brand) diagnostic capabilities that bring in more consistent work year-round.
We compared 250 independent auto repair shops—some using TEXA diagnostic systems and others using different tools. A significant focus was on those that expanded to serve additional vehicle categories.
(“Success” = at least a 10% total revenue increase within 12 months.)
Because the shops in our study range from small, single-location outfits to larger multi-bay operations, return on investment (ROI) timelines vary:
Overall:
Once shops begin marketing new diagnostic services, they frequently observe:
Shops that remain focused on just one type of vehicle report 45–60% monthly revenue swings, while diversified shops using flexible diagnostic tools keep that fluctuation to 15–25%—and, in some cases, down to 12% after a year of offering new services.
Additionally, year-round vehicle services lead to an 83% customer retention rate, compared to 51% for specialized shops. In relative terms, that’s roughly a 63–67% boost in retention.
Although we highlight TEXA because we are an authorized dealer, the broader principle—offering multi-brand diagnostic coverage—applies to any modern, versatile system.
Specifically, TEXA users serviced on average 47 additional vehicles per month, spanning passenger cars, commercial trucks, and powersports—a key factor in reducing seasonal gaps.
Shops investing in TEXA equipment reported:
Technicians typically master basic diagnostic functions within 1 week and advanced features by week 4.
Usage typically settles around:
We found that shops that successfully stabilized their revenue share three primary factors:
For shops facing seasonal slowdowns, adding new service lines with modern diagnostic technology has proven transformative:
Regional factors also matter. In the Northeast, shops adding snowmobile diagnostics reduced winter dips by 27%, while coastal shops expanding into marine services achieved an average 35% summer revenue boost.
Typical figures include:
Over three years, shops investing in comprehensive diagnostics saw an average 245% ROI, factoring in both diagnostic fees and additional repair work.
Before expanding your automotive services, start with a detailed market analysis. Identify the most common vehicle types in your area, such as cars, trucks, motorcycles, or marine vessels. Conduct customer surveys to see which services they need the most. Set a six-month timeline and introduce each new service one by one to ensure proper training. During this rollout, establish revenue targets for each category and track their performance. Train your mechanics regularly on new tools and technologies, and monitor their progress closely.
Begin with multi-brand diagnostic coverage for the vehicle types you already service. As demand grows, expand your diagnostic tools and capabilities. Allocate about 5–10% of your monthly revenue to training and software updates. Track tool usage and return on investment so you can fine-tune your approach.
Add services that fit naturally with your current specialty. Cross-train at least two technicians on every new diagnostic tool. Keep detailed records of diagnostic accuracy and turnaround times to spot any issues early. If a job goes beyond your capacity, partner with specialized shops for overflow or niche tasks.
Measure the success of each new service category by tracking revenue, customer retention, and acquisition costs. Monitor diagnostic tool usage rates and average repair order values. Watch for seasonal fluctuations and maintain records of staff productivity. Review these metrics monthly or quarterly, and be ready to pivot if any new service line falls short of expectations.
As an authorized TEXA dealer, we’ve seen firsthand how multi-brand diagnostic systems can help auto repair shops overcome seasonal revenue challenges. Shops that expanded service lines beyond standard cars and light trucks reduced their seasonal dips to around 15–25%, and in some cases as low as 12% after fully diversifying. By contrast, single-service shops continue to see volatility as high as 45–60% (and occasionally 70% for highly specialized segments).
Many of our participating shops serve 40% more vehicle types within the first year of diversification. Meanwhile, 78% recoup their diagnostic equipment costs within 8 months, thanks to stronger customer retention, more diverse service opportunities, and a steady pipeline of year-round work.
If you’re ready to protect your business from seasonal slowdowns, the data is clear: investing in multi-brand diagnostics pays off. Contact OBD Monitor today to learn how TEXA diagnostic tools can help your shop serve more vehicle types, attract new clientele, and stabilize revenue all year long.
Note: These insights draw on data from 250 shops across North America (2021 to early 2024). While TEXA’s performance stands out, the underlying principle—offering diverse, multi-brand diagnostics—benefits any repair business seeking more predictable, year-round growth.
OBD Monitor is Canada’s first authorized TEXA dealer, providing advanced diagnostic solutions for mechanics, dealerships, and fleet managers. Trusted for innovation and expertise.