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Posted

This topic has been fresh in my mind the last couple weeks, billy bob's backyard repair has been advertising absurdly low prices in my area. I rationalized every possible way to complete with him on price without ruining my reputation or my customers vehicles and came up short. This dude charges $20/hr you bring your own part. Theres a few guys working there too. I saw the same thing when I ran a towing service, bob's wrecker service $25 any tow any time up to 25 miles. They are like mosquitos at the BBQ one burns out and a new one takes its place.

 

I've tried to just not even think about it, but its frustrating to have to explain why I'm 5x this cowboy's price over and over again. Workers comp, liability ins, service manuals? Professional service equipment? No way unless the magic free fairy lives there.

 

What are your thoughts?

  • Like 1
Posted

I see this also and I don't get to wrapped up in thinking about them. We have a couple of mobile guys as well as craigslist mechanics. They will almost always have customers that I am not that interested in. I do always look at our operations and wonder how can we do what we do better for less while still making our desired margin? I don't want to say i just discount them and blow them off because you have to think about some of the things we do as being commoditized and what are we going to do to compete. I can't fix every car or every customer so I want to search for customers that meet the demographic profile of our target. Those shops never last, we have to sell the value of what we bring and we must also be able to articulate the value that we provide. There will always be price and bargain shoppers, but there are also those that appreciate value and are willing to pay for it, those are the ones I want and market to.

When it comes to mobile service this is something that we look at as telematics become more prevalent. I can see us in the future performing some repairs in the field because of the availability of having the vehicle data remotely. We may be able to perform most diagnostics from our desktop and dispatch a tech with the right tools, information and data needed to perform repairs at the customer home or business when it's most convenient for them. Of course there will be a charge for this.

 

I am involved in the electric utility business also and I see how we use technology to troubleshoot remotely then look at GPS to see which service trucks are in the area and then drill down to which trucks have the required tools and parts necessary to repair the outage and dispatch accordingly. Some of it is predictive, based upon past history and it's all software driven. Think about what's happening in the dealerships now and warranty work. 60% of most warranty work is software related. The manufactures are going to start pushing the software updates remotely at night or at times when the vehicle is not in use to correct the problem thereby eliminating the service visit and revenue to the dealership.

These are all things we must think about and plan for if we want to remain competitive.

  • Like 1
Posted

If a woodchuck is the same thing as a groundhog around here we call them varmits. Groundhogs/woodchucks can be captured or killed year-round without a permit or hunting or trapping license from the DNR, and there are no limits to the number that can be taken. :rolleyes:

Posted

I see it everywhere here also. I constantly get the "owner" (won't call them a customer) that wants me to match the hacks price. cant do it, wont do it! I let Sum Guy have that work. When it is hacked beyond recognition then I get triple to fix it right! I have filed complaints with the local and state agencies that are supposed to regulate these hacks. Their response is if they aren't registered with the state we cant police them!! THEN WHY DO I PAY FOR MY PAPERWORK?

  • Like 1
Posted

I have recently heard of this also. I don't think it is going to hurt us. These mechanics have been around for ages. Heck, we all have probably been there at some point early in our careers.

  • Like 1
Posted

The problem with Billy having low prices because he has no overhead is that he's fly by night.

Most customers won't choose to go to a guy working out of his garage. Too scary.

Especially if you're a parent.

 

No need to run a race to the bottom on price. People know they get the quality they pay for.

 

That being said, and I've been there myself, sometimes there's just more money than month.

So, why not have a good relationship with a "Billy" you know and halfway respect. Send him the customers who need help and can't pay you.

Have him send you the work he can't do at your price.

 

Why not hire a guy like that to be your mobile service tech and incorporate his business with yours?

I'm a single mom with a kid who had medical problems during his school years. I was willing to pay people to come to my house when I couldn't go out.

Including SAFEWAY! The key to selling to moms is MAKE LIFE EASIER for us! If it costs a little more to get the work done in the schedules that have us flying all over town on deadline all day, we don't care about it as much as getting the kids to wherever on time.

 

So use Billy to your competitive advantage. Or just ignore Billy.

 

In a small town, chances are you know each other anyway. Your reputation as a stand up guy is worth more than anything else you can invest in.

Don't get caught badmouthing your competition because any negativity will reflect back on you.

 

The next time some customer tells you they can get work done by a Billy, start laughing. Break into a big smile and say "well, I'd never let anybody I cared about get service from a guy like that - too risky!"

And for a lot of reasons, you'll be exactly right.

  • Like 1
Posted

I agree completely with Marksas. As a professional service provider, it's actually part of my marketing & business plan to avoid the well-defined group of prospects that are likely to be romanced by an unreasonably low price by an amateur "Billy". I warmly tell my would-be patrons that although I understand their need to save money, that sometimes cutting corners in the qualitty of parts & service by seeking out the lowest bidder may very well NOT be in their family's best interest.

 

I don't get mad, hurt, disappointed, or otherwise affected. I give them the very best advice by telling them that if they want professional service, it can't be had by someone with a rusty, handheld toolbox and a bumper jack, and most reasonable people agree with this premise. The BEAUTIFUL thing is that the segment of your available prospects who would argue or try to negotiate price will be disappointed when they learn your price is a fair, PROFESSIONAL assessment of what it will take to repair their vehicle...but you'll only have to tell them ONCE...and they'll never darken your door again to waste your time. HEck...tell them that while there's nothing YOU can do about that $20 quote they got from Billy, that you heard that your competitot, XYZ Automotive, may very well entertain it.

 

Let them waste your competitor's time from now on...you can keep selling work profitabily without being interrupted by price shoppers. The minute that you drop your price or negotiate in this way with a price shopper, two things happen: 1) They walk away thinking you were just about to try overcharging them if they weren't smart enough to beat you up about it, and 2) You've just acquired another customer who will waste your time and try negotiating EVERY price they ask for in the future.

 

Happy wrenching!

  • Like 1
Posted

I agree completely with Marksas. As a professional service provider, it's actually part of my marketing & business plan to avoid the well-defined group of prospects that are likely to be romanced by an unreasonably low price by an amateur "Billy". I warmly tell my would-be patrons that although I understand their need to save money, that sometimes cutting corners in the qualitty of parts & service by seeking out the lowest bidder may very well NOT be in their family's best interest.

 

I don't get mad, hurt, disappointed, or otherwise affected. I give them the very best advice by telling them that if they want professional service, it can't be had by someone with a rusty, handheld toolbox and a bumper jack, and most reasonable people agree with this premise. The BEAUTIFUL thing is that the segment of your available prospects who would argue or try to negotiate price will be disappointed when they learn your price is a fair, PROFESSIONAL assessment of what it will take to repair their vehicle...but you'll only have to tell them ONCE...and they'll never darken your door again to waste your time. HEck...tell them that while there's nothing YOU can do about that $20 quote they got from Billy, that you heard that your competitot, XYZ Automotive, may very well entertain it.

 

Let them waste your competitor's time from now on...you can keep selling work profitabily without being interrupted by price shoppers. The minute that you drop your price or negotiate in this way with a price shopper, two things happen: 1) They walk away thinking you were just about to try overcharging them if they weren't smart enough to beat you up about it, and 2) You've just acquired another customer who will waste your time and try negotiating EVERY price they ask for in the future.

 

Happy wrenching!

All good points! Thanks. The best thing that ever happened to our shop was when I got rid of cheap oil changes and lost my bottom feeders.

  • 1 month later...
Posted

I like the idea about sending them to a competition. I had a customer once try to bring his own part. I said I think the guy down the street installs customer supplied parts. Customer called a week later complaining his car had been there all week and the price went up three times.

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  • Have you checked out Joe's Latest Blog?

         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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      Website - shopmarketingpros.com 
      Facebook - facebook.com/shopmarketingpros 
      Get the Book - shopmarketingpros.com/book
      Instagram - @shopmarketingpros 
      Questions/Ideas - [email protected] 
      Thanks again for listening to The Auto Repair Marketing Podcast on Aftermarket Radio Network. There are some other great shows on the network and you can find them at AftermarketRadioNetwork.com or on your favorite podcast listening apps like Spotify, Apple Podcasts, Google Podcasts, and many others


      Tune in for another episode next week. Until then, go fill those bays!
      Talking Points


      General Topics for April:
      April showers bring may flowers - wiper blades, Aquapel, tires Continuing the theme from March Spring maintenance and cleaning Pot holes - winter damage Change back to summer tires Continue with the tax refund talk
      Days of the Year - Monthly Themes
      April is the first of the two National Car Care Months VEDA - Video Every Day in April


      Days of the Year - Weekly Themes
      National EMS Week


      Days of the Year - Daily Themes
      4/1 April Fools Day 4/2 National Ride Your Horse to a Bar Day 4/3 National Burrito Day 4/4 World Rat Day ⅘ International Pllow Fight Day ⅘ National Read a Road Map Day 4/12 National Grilled Cheese Sandwich Day 4/15 National That Sucks Day 4/17 National Auctioneers Day 4/20 Easter 4/22 National Jelly Bean Day 4/28 Clean Comedy Day 4/29 Viral Video Day














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      Chris delves into key topics that are crucial for auto repair shop owners, offering insights and advice that are both practical and forward-thinking. One of the main discussions revolves around the concept of adopting a four-day workweek. He explores the potential benefits this can bring, such as improved work-life balance for employees, increased productivity, and enhanced job satisfaction, while also addressing the challenges and considerations that come with implementing such a change.
      Another focal point of the episode is the distinction between commitment and mere interest. Chris emphasizes that true success in business requires a deep commitment, rather than just a passing interest. He encourages shop owners to fully dedicate themselves to their goals and to cultivate a mindset that prioritizes long-term success over short-term gains.
      The benefits of business coaching are also highlighted, with Chris advocating for the value of having a mentor or coach to guide business owners through the complexities of running an auto repair shop. He shares how coaching can provide clarity, accountability, and strategic direction, ultimately leading to more effective decision-making and business growth.
      Throughout the episode, Chris underscores the importance of professionalism within the industry. He stresses that maintaining high standards of professionalism not only enhances the reputation of individual shops but also elevates the industry as a whole.
      In addition, he encourages listeners to take advantage of the marketing resources offered by the podcast's sponsor, Shop Marketing Pros. He explains how utilizing these resources can help shop owners effectively reach their target audience, build their brand, and drive business success.
      Overall, the episode serves as both a retrospective on the past year's achievements and a motivational message aimed at inspiring business improvement. Chris Cotton's insights and stories provide valuable lessons and encouragement for auto repair shop owners looking to elevate their businesses to new heights.
      Introduction to the Podcast (00:00:11)
      Overview of the podcast's purpose and the value it offers to auto repair businesses. Celebrating Episode 200 (00:01:08) Kimberly's Kidney Donation (00:02:06) Highlighting Episode 164 - Unlocking Greatness (00:04:21) Highlighting Episode 170 - Four Day Workweek (00:05:24) Preparing for 2025 (00:07:42) Highlighting Episode 172 - Commitment vs. Interest (00:08:46) Highlighting Episode 175 - The Pumpkin Patch (00:09:58) Highlighting Episode 180 - Profit First (00:11:11) Highlighting Episode 185 - Mom and Pop Shops (00:12:00) Highlighting Episode 186 - Coached vs. Uncoached (00:12:46) Highlighting Episode 187 - Project Alpha (00:13:05) Highlighting Episode 189 - Impact of Politics (00:13:55) Highlighting Episode 192 - Self-Obstruction (00:14:20) Highlighting Episode 193 - Being the Best Shop (00:14:46) Highlighting Episode 197 - Chris's Favorite Things (00:15:30) Looking Ahead to Episodes 201 and 202 (00:15:50)
      Connect with Chris:
      [email protected]
      Phone: 940.400.1008
      www.autoshopcoaching.com
      Facebook: https://www.facebook.com/
      AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae


      #autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix #shopmarketingpros #autofixautoshopcoachingbook
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      Thank You To Our Partners The Institute, AutoFlow, AutoLeap, Shop Dog Marketing, In-Bound:
      In this episode, Craig is concise as he reflects on the timeless wisdom of Martin Luther King Jr. and how his principles of nonviolent conflict resolution remain highly relevant today. Inspired by recent readings of King’s works, specifically his iconic Letter from Birmingham Jail, Craig explores how these lessons can be applied to resolving conflicts in everyday life—even in situations as modern as addressing negative reviews.
      This thoughtful discussion acknowledges the historical context of King’s writings while highlighting their enduring value in promoting understanding, negotiation, and meaningful resolution.
      Watch Full Video Episode
      Key Points Discussed:
      Craig’s Appreciation for MLK’s Legacy: Acknowledging King’s brilliance as a leader, communicator, and writer, Craig emphasizes the enduring relevance of his concepts and principles. The Four Steps of a Nonviolent Campaign (as outlined in Letter from Birmingham Jail):
      Collection of Facts: Ensure injustices are present and verified. Negotiation: Open dialogue with a willingness to find common ground. Self-Purification: Prepare yourself to act constructively and maintain the ability to return to negotiation. Direct Action: Take deliberate action aimed at fostering a return to negotiation.
      The Word of the Day:
      Unfettered.
      Adj - Not controlled by anyone or anything.  Uninhibited
      Modern Applications:
      Craig draws parallels between these steps and common missteps in conflict resolution today, such as skipping fact-gathering and jumping straight to retaliation—like leaving a low review without understanding the full story. He discusses how these missed steps can lead to escalation rather than resolution.
      Takeaways for Listeners:
      People care about how much you know only after they know how much you care. Applying MLK’s principles to situations like resolving a customer complaint or an unjust review can model constructive engagement and encourage others to seek facts, negotiation, and resolution.
      This episode is a thoughtful tribute to King’s enduring legacy and a practical guide for applying his lessons to resolve conflicts with empathy and integrity.
      Links & Resources:
      Letter from Birmingham Jail by Martin Luther King Jr.
      Join Craig as he unpacks these timeless lessons and their power to transform the way we approach conflicts in our personal and professional lives.
      Thank You To Our Partners The Institute, AutoFlow, AutoLeap, Shop Dog Marketing, In-Bound:
      The Institute at WeAreTheInstitute.com.  "Stop stressing over your business, you deserve a good night's sleep. The Institute’s coaching helps you achieve success and financial peace.
      AutoFlow at AutoFlow.com. Your partner in technology, Autoflow consolidates your client interactions - before, during and after the visit to a single thread. Learn more at Autoflow.com
      AutoLeap at AutoLeap.com. Are you tired of juggling multiple tools to manage your auto repair shop? Say hello to the streamlined efficiency of AutoLeap, the #1 all-in-one Auto Repair Shop Management Software!
      Shop Dog Marketing at Shop Dog Marketing.com. "Want to see your auto repair shop thrive? Let Shop Dog Marketing be your guide. Our customer-first approach, combined with AI-driven creative content, ensures top rankings.
      In-Bound at CallInBound.com. Cover your communication needs and revolutionize your auto repair business with AI-driven call analytics from InBound.
      Contact Information
      Email Craig O'Neill: [email protected] Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters
      The Aftermarket Radio Network: https://aftermarketradionetwork.com/
      Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/
      Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/
      Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/
      The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/
      The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/
      Click to go to the Podcast on Remarkable Results Radio


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