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By Elite Worldwide Inc.
Whenever a customer tells you they can’t afford to do the repairs, and they ask you if you can help them out “this one time’”, you need to give careful thought before you lower your price.
First of all, there is a cardinal rule in sales that says before lowering your price, you need to build more value in your service. Yet as we all know, there are going to be some occasions where no matter how good your sales skills are, the customer simply won’t have the ability to pay for the recommended services. In such cases, you and your advisors will have three options. One, you can let the customer walk; two, you can drop your price; or three, you can follow the proven path we have provided to tens of thousands of advisors over the years.
First of all, if you let them walk, both you and the customer have lost. They’ve lost the time they’ve invested in having their vehicle inspected, and when they leave your shop their problems still exist. You’ve lost the marketing dollars you invested in bringing the customer through your door, you’ve lost the time you’ve invested in inspecting the vehicle and estimating the job, and you’ve lost the opportunity to help someone in need.
The second option you have is to lower your price, and while you may close that sale, you’ll also be sending a message to your customer that if they wouldn’t have asked for a discount, they would have paid too much. If that’s not bad enough, it gets worse, because they know if they ever decide to come back they’ll need to negotiate with you, regardless of the prices you quote. The good news is, there’s a third option, and it’s one that’s used by the top shop owners in America with great success….
Putting first things first, you’ll need to see if the customer qualifies for any legitimate discounts you offer, such as Senior Citizen, AAA or Military discounts. You can also limit the number of repairs to the ones they can afford at the time. Another option (which works well in some cases), is to scale back on some of the benefits, such as the length or terms of the warranty. If you and your customer find none of those solutions to be acceptable, you can consider telling them that you will keep their vehicle at your shop (space allowing), and perform the repairs if and when your time allows (when another customer cancels their appointment at the last minute and your tech has the downtime, for example). What your customer would be sacrificing is the immediacy and convenience.
Please bear in mind that when making any decision to lower your price, you need to ask yourself who is ultimately going to pay for the discount, because the answer will inevitably be your other customers. Secondly, if you have the right advisors, with the right principles, they’ll know in their hearts it’s just not right to charge two people different prices for the same service. To put it another way, I’m sure you would not want your mom or dad walking into any business and buying a product or service when you know the customer right before them… paid less. Never forget, principles, not shell games, lead to two things: higher profits, and the ability to sleep at night knowing you are not playing games… with other people’s money.
Since 1990, Bob Cooper has been the president of Elite Worldwide Inc. (www.EliteWorldwide.com), a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers the industry’s #1 peer group of 90 successful shop owners, training and coaching from top shop owners, service advisor training, along with online and in-class sales, marketing and shop management seminars. You can contact Elite at [email protected], or by calling 800-204-3548.
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By Joe Marconi
Not every shop pays flat rat; for many reasons. So, many techs are on hourly pay. There is nothing wrong with hourly pay, as long as you have an incentive program in place that promotes high production levels to avoid complacency. For hourly paid employees I strongly urge you to have a pay plan that rewards production levels on a sliding scale.
As a business coach, I have seen too many times shops with low production levels and high tech payroll due to overtime pay. Overtime pay must not be used to get the jobs done with no regard to labor production. Limit overtime and create a strategy that increases production and rewards techs with production bonuses. By the way, there are many ways to incentivize techs, it's not all about money.
Overtime without high levels of production will eat into profits and if not controlled, with kill your business.
If your shop is an hourly paid shop, what incentives do you have in place to maintain production levels?
By Joe Marconi
Shop production is a hot topic these days. High production results in higher sales and profits. But there seems to be so many obstacles to overcome to achieve high production levels.
I was discussing production with a few shop owners, and one shop owner mentioned that he recently hired a shop foreman; an “A” tech in his early 50’s. The foreman uses his knowledge and skills to organize the work flow. For younger techs, it’s even more important that they know how to work and keep productive.
What are your thoughts? Does anyone else have a foreman or similar position? And how does this role affect production?
I'm finding the more I look into tire prices from box stores the more embarrassing my tire prices become. In the past month or so I've found tires for sale at Wal-mart, Discount Tire, and Fleet Farm cheaper than I can buy them. Have any of you ran into this? If so does your supplier match prices and make it so you can profit a bit?
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By Joe Marconi
As shop owners, we sometimes feel that we need to answer every question and handle every situation. While you need to be proficient as a business owner, you also need your employees to think for themselves.
Empower your people to solve problem. Ask them for their opinions and don’t be too quick to jump in on every situation. The more you jump in and solve their problems, the more they will rely on you. This is not to say you don’t have their back; but a team functions best when everyone takes ownership of their position and takes responsibility to take care of problems.
Will employees make mistakes? Yes. But there isn’t a shop owner on this planet that has a perfect record at making decisions. We all make mistakes.
As a shop owner; teach, mentor and coach. Include your employees in on decisions that relate to their job position. When employees feel you trust them, they will begin to solve their own problems. This will set you free to work on the things that will bring you greater success.
By Joe Marconi
I am writing this on my last day of vacation in California, spending time with family. It took me a few days to totally relax, but made it a point to not look at emails or call the office.
We all need downtime. I know there will be a ton of work to be done when I return, but I also know that the time away has recharged my batteries and I will be more productive.
Being away from business and spending time with family puts things into proper perspective. You realize that a lot of the things you stress over, are really not as important as you think.
Take time to enjoy life. We all know how quickly time passes us by. And remember, no one on their death bed ever said they wished they spent more time at work.
By Joe Marconi
I’ll never forget the day when Mrs. Obrien brought her car back for me to look at. She was furious. I stayed late the night before, well into the night, to finish her car so she could have it for work the next day. I even did a few little things on the house because I felt she may be a little inconvenienced picking the car up so late.
Why did she bring the car back? A comeback? Well, not in the conventional way. It was the greasy smudge on her seat that she was angry about.
But what about me staying late? Or giving away a few minor services? Doesn’t that count? She is upset about a grease smudge? Oh yes, and she has every right to be.
The fact is, you can do the best repair, using the best parts, performed by the best technician on the planet. But what the customer sees is not necessarily your hard work, it’s that little greasy smudge that you are judged by. Unfortunate and unfair? Yes. But it’s a reality.
Perform the best repairs and provide world-class customer service; and never forget; it’s the little things the customer sees. And that’s what important to them.
By Stevens Automotive Service
You are a entrepreneur and your business is Automotive Repair. Run your business like a business and become more profitable.
You have a tool box just like your techs in the shop do and the ones with the correct tools , good work ethics and knowledge are the best at what they do. So can you in the shop management area just use your TOOL BOX!
A few things to get cleared up. I have read a lot of post , forums etc, dealing with car count, advertising, us against the dealerships etc. WELL ! First you have to concentrate on your business not what someone else is doing, what works for you and makes you money should be what matters to you and your business.
1) Concentrate on what your doing right if it needs refined ..REFINE IT.. DIAL IT IN... GET THE PERCENTAGES CORRECT.
2) Do you have enough work flow and are you getting the max out of what you already have ?
3) IF you don't have a good even flow of car count, advertise, but do it in a way that it comes back to you to show what your business has to offer that the others don't.
4) REPUTATION, CUSTOMER SERVICE, FIXING THE CONCERN and BEING A SMART BUSINESS OWNER are the only steps to winning.
5) Last but not least .. PEOPLE BUY GOODS AND SERVICES FROM PEOPLE PERIOD !!
Look at it in this perspective for a moment. Your advisors are problem solvers, customer comes in with a problem or just for a service and they let them know what it will take to repair it or what the car may be in need of if not now then soon. They are solving problems if not right now then later, building trust and reputation for your business. I always say if you solve there problem the rest SELLS itself. And for those of you that think and have been programmed to think that getting new customers, keeping the good ones you have to spend crazy money to get them and keep them is just that "crazy".
I will be glad to speak with anyone that wants to have less stress and make there shop profitable. Send me a message, email, phone call and we will go over what you have and what you are wanting to achieve and the consultation is always free. IT COST NOTHING TO ASK BUT IT COULD COST A LOT IF YOU DON'T !!
"LOAD YOUR TOOL BOX WITH THE RIGHT TOOLS"