ARO should mean Average Repair Order. The gross sale for services rendered for a particular car or ticket or Repair Order.
If your ARO is low you have to look at a lot of different factors. There are so many but I will just highlight a few that make the most immediate impact for me.
1. Are you charging correctly for labor? Are you charging book time? Are you adding a multiple or do you have a labor matrix?
2. What are your Gross Profit Margins on parts? Are you getting enough for the parts you are selling?
3. Are your techs on flat or salary? Do they have incentives to perform a proper inspection so your service advisors have a quality list of repairs to up sell? are your service advisors qualified to sell and do you have a sales process?
If I was to generalize 3 big areas these are the ones I would say would have the biggest impact on your ARO. In a nut shell, charge properly, raise your prices to get better margins, have the right systems in place to sell the work.