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In today’s competitive automotive industry, understanding your numbers isn’t just an advantage —it’s essential. I’m Tina Drayson, Operations Director of CCM and Head of the Garage Section with the IAAF, and I’m here to share valuable insights into the key data points that can drive real business improvement.
Average Invoice Value (AIV) is a term we hear frequently in the automotive aftermarket; it has become a bit of a buzzword. But what does it really tell us, and why should we pay attention? AIV refers to the average amount a customer pays per job. It is a key performance indicator that gives garage owners valuable insight into how much revenue is being generated per vehicle. It is also a useful metric for forecasting, helping us plan based on expected workload and business throughput.
There is often a perception that a higher AIV reflects a workshop firing on all cylinders, meaning that technicians are completing thorough vehicle health checks, identifying additional work, and service advisors are effectively communicating this to customers and securing authorisation. This not only drives revenue, but it also improves workshop efficiency, fewer cars through the door, less movement on and off ramps, and better use of technician time.
However, a higher AIV isn’t always straightforward. It can also indicate that your workshop is handling more complex jobs, such as diagnostics, engine work, or clutch and timing repairs. While this work brings in higher revenue per job, it also requires tighter management of time and parts and carries more risk if not carefully controlled as jobs can easily overrun. How often do you find yourself unable to charge the customer for all the time spent on these involved repairs?
On the other hand, a lower AIV typically reflects a high volume, quick turnaround environment. These are the MOTs, services, tyres, wiper blades and essential work, but often done on customer instruction only. It may suggest that your team are not consistently performing health checks, or that service advisors are hesitant to upsell additional work. This can be due to a lack of confidence, training, or the common misconception that “it’s too expensive for the customer” which we base on our own feelings about a value.
Low AIV means you will need more vehicles through the workshop each day to meet your revenue goals. That means more movement, which can cause reduced efficiency and more admin putting additional load on the service advisors.
While volume of jobs might make up for it on paper, lower margin jobs often leave little room for profit and missed opportunities to serve customers more thoroughly. There is another important factor to consider when looking at AIV, the labour/parts split. In a healthy garage, I would expect a split of at least 55% labour to 45% parts.
When AIV is low, especially in businesses that carry out high volumes of MOTs for retail and/or trade, we often see a split of 65% labour to 35% parts. That is because these jobs are labour only, without parts revenue.
Conversely, when AIV is higher, it's usually due to part heavy jobs (e.g. gearboxes, engine rebuilds, clutches), which can bring the split closer to 50/50 or even tip more towards parts. While that looks great for our average invoice value, we must remember that our core product as a garage is labour. That is where we make our real margin.
A balanced perspective
So yes, chasing a higher AIV can be beneficial, but it is
not just about selling more. We have a duty of care to our customers, it is about doing a thorough job, identifying work customers need, and building trust through honest, informed communication.
It is just as important to focus on the right type of work, ensuring your labour sales remain strong and your team is confident in identifying and recommending necessary repairs.
And finally, don’t fall into the trap of comparing your AIV with other garages. Every business is different, your customer base, pricing model, and service offering will influence your numbers. A garage doing fast-fit work will have a very different AIV from one specialising in diagnostics or fleet maintenance.
Instead, use AIV as an internal benchmark. Track it month to month, understand what is driving changes, and use it to shape your own improvement strategy. The goal is not to match someone else’s number; it is to optimise your own.
Food for thought, which would you prefer:
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