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Price just isn't everything


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We’re not the cheapest guys in town. There – I said it. But we’re not downright unfair, and we do a good job at offering over the top value to those we hope to serve. In any market or industry, there are three distinct categories of customers, the price conscious, value conscious, and the quality conscious. Sadly, the price conscious folks seem to be the most discussed in forums.

 

We had a young lady come to us 2 years ago for service when she had a breakdown. In addition to the way her concerns were addressed from a technical/mechanical standpoint, she received such over-the-top treatment (I think her initial invoice was about $300), that her review of our company online indicated some key points in our company's mission statement, validating our effort to serve our market in the way we set out from the beginning. This, alone, made us dance joyfully. (I know…picture that, will you…)

 

A month later, she cancelled an oil change appointment...actually, I think she was a "no call, no show". When we called, we found that she had fallen ill with the flu. As she was local, and exactly the kind of customer we knew we wanted to be of service to, my service writer took it upon himself on his lunch to buy her a get well card, some hot soup, and a balloon, and deliver it to her door that afternoon. Total cost? About $10. Weird, I know, but seriously, how awesome do you think SHE felt about it?

 

What happened after that, and over the next 2 years was nothing shy of amazing. She has, without failure, come in EVERY FRIDAY with a plate of fresh, homemade cookies for us to leave out in our lobby for our other customers to share. Every week, for two years and counting! He cookies initially sat next to a well-articulated, printed letter she wrote, expressing her gratitude for “these weird mechanics who always seem to be more interested in the people who come in than the money they are hoping to make.”

 

As it turns out, she had a rotten experience with her last mechanic, and as we’ve all heard the story, vowed she’d never return there. Apparently they just didn’t seem to care about her…they only wanted her money, and over time, it became more and more evident to her & her family. Zig Ziglar (paraphrased) said that you can have everything you’ve ever wanted in life if you’ll just help enough other people get what THEY want. He’s right. We focus on serving the people that come in, not the “almighty dollar”. Focus on the needs of people, and the money will ALWAYS follow, I promise. Focus on the dollars, and you may make a few…but you’re falling short of your potential.

 

By the way, the customer described herein is married, has 3 college aged kids, and an elderly parent living with her. 6 cars. Six. In the last 2 years, we’ve collected almost $12,000 dollars from them for services provided, including 2 engine jobs. And she couldn’t care any less about the coupon in the paper at my competitor offering $10 off an oil change.

 

Just one man’s story.

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  • 3 weeks later...

Funny you mention it, I picked up zig ziglars book at the dump one day in the book share pile and it really changed my life. As soon as I focused on helping others get what they want, I mean honestly ingrained it into everything I do, my life changed for the better. Thanks for the post, very uplifting!

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  • Have you checked out Joe's Latest Blog?

         3 comments
      Got your attention? Good. The truth is, there is no such thing as the perfect technician pay plan. There are countless ways to create any pay plan. I’ve heard all the claims and opinions, and to be honest, it’s getting a little frustrating. Claims that an hourly paid pay plan cannot motivate. That flat rate is the only way to truly get the most production from your technicians. And then there’s the hybrid performance-based pay plan that many claim is the best.
      At a recent industry event, a shop owner from the Midwest boasted about his flat-rate techs and insisted that this pay plan should be adopted by all shops across the country. When I informed him that in states like New York, you cannot pay flat-rate, he was shocked. “Then how do you motivate your techs” he asked me.
      I remember the day in 1986 when I hired the best technician who ever worked for me in my 41 years as an automotive shop owner. We’ll call him Hal. When Hal reviewed my pay plan for him, and the incentive bonus document, he stared at it for a minute, looked up, and said, “Joe, this looks good, but here’s what I want.” He then wrote on top of the document the weekly salary he wanted. It was a BIG number. He went on to say, “Joe, I need to take home a certain amount of money. I have a home, a wife, two kids, and my Harly Davidson. I will work hard and produce for you. I don’t need an incentive bonus to do my work.” And he did, for the next 30 years, until the day he retired.
      Everyone is entitled to their opinion. So, here’s mine. Money is a motivator, but not the only motivator, and not the best motivator either. We have all heard this scenario, “She quit ABC Auto Center, to get a job at XYZ Auto Repair, and she’s making less money now at XYZ!” We all know that people don’t leave companies, they leave the people they work for or work with.
      With all this said, I do believe that an incentive-based pay plan can work. However, I also believe that a technician must be paid a very good base wage that is commensurate with their ability, experience, and certifications. I also believe that in addition to money, there needs to be a great benefits package. But the icing on the cake in any pay plan is the culture, mission, and vision of the company, which takes strong leadership. And let’s not forget that motivation also comes from praise, recognition, respect, and when technicians know that their work matters.
      Rather than looking for that elusive perfect pay plan, sit down with your technician. Find out what motivates them. What their goals are. Why do they get out of bed in the morning? When you tie their goals with your goals, you will have one powerful pay plan.
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