I'm Confused... And need help.

[mspecperformance]

Case in point, I have a 2005 Chevy Express that came in for an LOF and a tail light out. Parts are on order for a $2500 RO. That nicely offsets the 2011 Escape with 38,000 that needed nothing but an LOF.

 

With that said, if I am doing my job and my customer is allowing me to do my job then their car won't need more than their immediate concern. After 2-3 visits the car/truck/van should be up to snuff and only in need of maintenance or unforeseeable repairs such as the alternator that tested fine last visit.

 

You must have a lot of really nice roads and weather conditions where you are at. Every car we see is a disaster minus the cars that are <3 years old and low mileage.

[tyrguy]

I agree BUUTTTT....how many cars do you se in a year over 100k that still has original hoses? Do thermostats wear out? The number one reason for roasdie calls is overheat. Yea the hoses "look good"..at least what you can see of them. Cant see the stat buts it working good "for now". How about the car thta has never had a trans service..maker says "lifetime" fill. We all know thats BS. I WILL NOT SELL UN-NEEDED WORK! BUT I WILL RECOMMEND SERVICES THAT I BELIEVE WILL BENIFIT MY CUSTYOMER AND EXTEND THE LIFE OF THE VEHICLE. Will everyone buy everything every time? No. Will they return for the work that you recommended..maybe. There in lies the key..track it..and try to re-sell it.

Now do the gurus tell us to sell un-needed work..not to me they havent. What I did hear them say is INSPECT RECOMMEND AND REMIND!

Hoses are the most neglected and un- recommended/ un-sold service out there. We adhere to Gates' recommendation of inspect at 60k, replace at 90k. However, most of time we tell customers that at 90+k they should replace them they almost always initially say go ahead. That is until you tell them it's going to be $400-$500. Most back off at that point.

Edited October 27, 2016 by tyrguy

[TheTrustedMechanic]

 

You must have a lot of really nice roads and weather conditions where you are at. Every car we see is a disaster minus the cars that are <3 years old and low mileage.

I'm in Traverse City Michigan. No we do not have really nice roads and we do have a big problem with rust. We just have people who understand that if you take care of your car, it will last longer and that the outward appearance isn't as important as safety and reliability.

[ewelchtx]

I wanted to add, lot's of guys don't really understand margin vs markup. Here is a great article that illustrates how to figure margin and use markup:

 

http://www.accountingtools.com/questions-and-answers/what-is-the-difference-between-margin-and-markup.html

 

It's real simple. If you want a 25% margin, divide cost by reciprocal of 25 or 75%.

A 33% margin = 67% markup

A 40% " = 60% markup

 

Expenses + expected or budgeted profit divided by actual gross profit equal Sales needed to pay bills and obtain profit.

It's very simple.

Profit before taxes should be at least 12.5% to Sales