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Posted

I've noticed that whenever I price out shock/strut replacement estimates based on our parts pricing matrix and labor guide (All Data), we always seem to be on the "high" side compared to our competitors in our area (Pepboys, Merchants, Midas, etc.). Are shock/strut jobs considered a commodity item and priced at a reduced rate like batteries, or brakes?

Posted

When we have a car in the shop and give a price, we are giving our price on doing the job our way. This means using top brand parts and performing an alignment afterwards. We make a good profit on our strut jobs. If we are giving a price quote against another (mostly chain) shop, then we accent the fact that we use first rate American Made parts, and ask the prospect if the competition is using American Made parts. Most of the time they don't know. We work off of that and put one hell of a selling job on them to get the business. Sometimes we will discount our quote to get the business. We LOVE doing strut jobs. If Quick-Struts are available, we always use them and stress the benefits to our clients car and to them. We LOVE doing strut jobs!!!

Posted

As always and in anything we sell if we are going to position ourselves by value instead of price then we have to sell exactly that, our value. We have to sell benefits and what makes us different than a chain store or the other shops that are positioning themselves on a price basis. Once you are effectively doing this you will find your job becoming much easier. If you are constantly getting the price shopping customer your demographic or marketing could be completely off.

 

A more direct answer to your question is we do not play the commodity game with practically any of our services. Many shops I see do however. This would include set prices on shock/strut installs.

  • Like 1
Posted

Because of the internet, parts and labor pricing is all out the open
now. In other words, anyone with an internet connection has access to
the exact same information as you do.

That has pretty much made all repairs and maintenance a commodity,
in the customer's mind.

They believe everyone does oil changes. Anyone can do a strut job.

Therefore, customers think it all boils down to who has the best price.

So, the first and most critical question is:

Why should that customer use your shop rather than all the other
choices they have? (Can your service advisor answer this question
confidently?)

carolinahigear gave some great examples of what that looks like,
in their shop.

Now, here's the big takeaway:

The time to educate the customer about WHY they should use you is
throughout every step of the sale.

The biggest mistake I see is: service advisors are not armed with
a strategic, step-by-step method for doing that.

Then, when it comes time to sell the job, the customer hesitates
or questions the price or reaches for their phone to compare
your prices with your competition...

And now, the service advisor finds themselves, in a defensive position,
having to try and justify the price, after the fact.

All of the objection handling in the world cannot make up for
what really needed to be said earlier, throughout the sales process
to make sure that customer understands WHY they should use your
shop for this service and all of their automotive repair needs.

For some insights on how and what the customer is thinking, here are
a couple of videos:
https://youtu.be/-Uab-r8WJUs?list=PL7p4IMvCsbZolGwR0_8LmQFgFkHoyj6t3
https://youtu.be/yGrLq6cVHAU?list=PL7p4IMvCsbZolGwR0_8LmQFgFkHoyj6t3

Once you understand how the customer thinks, it will change your
business forever!

  • Like 1
Posted

Time for you to do some recon. Go out to your competition and get your car's oil change, get to see them in action. Leave the oil change stickers in place and see if they notice you have the oil recently changed, put new filters and see if they recommend new filters. Pick the front counter people's brain, tell them you are considering doing the struts and ask for an estimate or quote. for about $250 bucks you can stop at 8 of your competitors and the information gained would be priceless.

  • Like 1
Posted

If you are getting undercut because of part pricing that is a conversation you need to have with parts supplier. I am never embarrassed to negotiate pricing with my suppliers on anything (parts, insurance, supplies, heck just got $22 knocked off our monthly trash bill). It keeps my total operating cost minimal and my stress cost minimal as well.

 

If the competition is using economy grade struts and you are installing top level struts make sure the customer knows. I'll install the economy monroes if it means winning the job, but the warranty is not the same. But I also only install quick struts if they are available and have no problem letting a customer walk out the door if they don't want quick struts. I have had on two occasions rusty Ohio springs crack in the compressor. No job is worth a hurt employee so I only do jobs on the compressor when quick struts cannot be sourced.

  • Like 1
Posted (edited)

We install quick struts all the time with free install. It keeps us competitive. They pay list for the 2 or 4 struts, buy new sway bar links at list, and pay for the alignment. There are exceptions of course, like vans where the cowl has to come off. Luckily we work on European cars enough where a strut job is big money at the dealer, and quick struts aren't available. Struts and springs plus mounts on a c class Benz is 3 grand at my place, probably 5 at the dealer. Joe backyard isnt doing it himself. If you ever had the pleasure of replacing Mercedes springs you will appreciate a good compressor. The springs need to be pretty much coil bound to get the struts in. Hairy.

 

We've had springs spiral out of the compressor, DUCK! I hate springs, missiles really.

Edited by alfredauto
  • Like 1

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  • Have you checked out Joe's Latest Blog?

         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.
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