Any of you have seen this deal from Mavis?
Talk about doing the desperate thing to bring people in through the door.
By Joe Marconi
With Mother Google literally tied to our hands, through our cell phones; are part margins becoming more difficult to achieve? Traditionally, shops use a 50% part margin, which they deserve. But, we live in a world today where part prices are so transparent that maybe we need to rethink this.
Consider this: What if we concede on prices? Hold to a suggested list…BUT…raise our labor rate to offset the loss in overall profit. In other words, keep your parts prices at a margin the consumer will not question, but raise your labor to make up the part profit?
This is being discussed around the country and there are shops that have implemented this strategy. We can’t give up our overall gross profit, so is this a viable option?
By Joe Marconi
I can't tell you how frustrating it is to give a price on a radiator to a customer at the service counter, while he's on his phone searching for the part!
Here's what I do when I get a customer that tell me he can get the part cheaper....I agree with him!
I let him know that he can get the part cheaper, just like he can buy a steak and potatoes cheaper at the super market too. But he'll pay more for the steak and potatoes at a restaurant.
And then in a calm manner, I review all the benefits of me suppling the part, the warranty and the fact that if the part is wrong or defective or fails in the future, he will have no recourse and will have to pay to have done all again.
For most, it works. For many it's all about price.
Now Most IMPORTANT IS THIS: The reason why you don't mind spending more for a steak at a restaurant is because of the experience. So, make sure the customer experience clearly demonstrates the value of why people need to do business with you. When Value goes up, price becomes less of an issue.
Hope this helps. Let's hear from you on this frustrating topic!
Icahn Automotive Group LLC today announced the launch of Pep Boys Fleet, a program that puts a renewed focus on automotive service designed to better meet the needs of today’s growing fleets. With a new tagline, “Driving your business forward,” Pep Boys Fleet will continue to serve as a preferred partner to large, national fleet management companies and with this move is now better-positioned to meet the needs of the many small fleets emerging from the explosive growth of transportation network companies and last mile delivery services.
Pep Boys Fleet has the experience to handle any size fleet, providing inspections and warranty-backed repairs, both routine and complex, according to Icahn Automotive. Pep Boys Fleet service, including preventative maintenance such as tires, brakes, batteries and suspension, is done through the Pep Boys national network, which consists of more than 9,000 service bays in more than 1,000 company-owned locations. Pep Boys Mobile Crew, which launched in 2018 with state-of-art trailers, will now expand to include smaller-format fleet vans that are fully equipped with all the necessary supplies and staffed by trained technicians to complete common fleet maintenance and repair needs on-location.
“No matter the size of the fleet, our goal is always to decrease the vehicle’s downtime, ultimately providing a more convenient, flexible and personalized way of addressing repairs and vehicle maintenance,” said Brian Kaner, president of service, Icahn Automotive. “Pep Boys Fleet is the only service provider to be backed by a national network and offer mobile
maintenance and repairs, as well as provide dedicated fleet team support and solutions designed to both streamline the fleet manager’s role and help an owner focus on the running the business and not the fleet.”
Today 20% percent* of vehicles are sold to fleets, a number that’s expected to shift as high as 40% over the next 20 years as ride-sharing, ride-hailing and online retail continues to grow. As one of the largest, most trusted and widely known aftermarket automotive service providers, Pep Boys Fleet and the company’s trained and certified technicians can work on all makes and models. Changes have been made to the service format in Pep Boys locations to establish dedicated Pep Boys Fleet bays reserved exclusively to expedite fleet jobs, and locations are also being updated to include meeting rooms with amenities where fleet customers can conduct business while their vehicle is undergoing maintenance.
Pep Boys Fleet provides customers with national, regional, local and store-level support where customers receive a single point-of-contact that gets to know them and their business. The Pep Boys Fleet Team representative develops a customized service program and pricing plan and remains engaged to help manage a customer’s fleet business. Pep Boys Fleet also provides customers with a universal fleet services credit card that allows fleet managers to track and pay for vehicle repairs and preventive service and earn rewards. All fleet customers can also take advantage of a specialized online invoicing and payment system and a 24/7 towing program to any Pep Boys location.
Pep Boys Fleet is an official tire, brake and preventative maintenance supplier of Amazon’s Delivery Service Partners (DSP), which provides negotiated pricing for Amazon DSP maintenance, along with a pro rewards program, and fleet credit which owners can use to cover unforeseen expenses. Later this year, Pep Boys plans to launch a management technology solution to help small and mid-size businesses better manage their fleet maintenance.
The launch of Pep Boys Fleet is a continuation of Icahn Automotive’s investments in its service business and follows the announcement of a comprehensive program to recruit and train automotive service technicians to meet the demands of the industry, which are being driven largely by the fleet customer. In addition to launching new service formats such as Mobile Crew, the company continues expanding its footprint in key markets by acquiring both franchised and owned service centers and remodeling existing Pep Boys locations.