Quantcast
Jump to content


Should I feel guilty for raising prices?


Jay Huh

Recommended Posts

Hi everyone, first time post and it's been good reading everyone's input on this forum. Just so happened to stumble upon this forum and it's awesome having other people in my shoes.

 

I quit my job as a service advisor and started doing side work out of my garage @$35/labor rate. Became a mobile mechanic with $45/hr 3 months after. Got a shared building with 2 bays and bumped up to $60 an hour. 8 months later, I am now at my current very own 6 bay facility with 4 employees and I just bumped up my rate to $75/hour. I have 2 national chains that share the same wall (Meieneke and Precision tune) and they charge $95/hour.

Problem is, I still have customers that come to me from my $35/hr days and feel extremely bad and guilty for charging new rate. Should I be? Best way to implement change without losing customers? From the customers perspective, do you think they understand the operating costs and justification in price increase?

Link to comment
Share on other sites



  • 2 weeks later...
  • 2 weeks later...
  • 2 weeks later...

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Similar Topics

    • By Joe Marconi
      For many shops, business during the winter can slow up due to a number of reasons.  What I have found that works is to schedule a flood of service reminders and past recommendations to go out during the months of Jan and Feb.  Maintaining touch with your existing customers is a great way to keep your shop top of mind, and it may just bring in a little extra work too.
      Any winter marketing tips to share? 
       
    • By carmcapriotto
      John Eppstein, owner of John's Automotive Care, San Diego CA has been in business since 1998. The business is a complete general automotive repair and a smog test station. John’s Automotive Care has been relocated twice; the last move was in 2003. John has been in the automotive industry since 1985. He is the Immediate Past President of the B & G Clubs of East County where he's worked since 1996. He is also a member of a local NAPA BOG group. John's been a member of ASCCA's Chapter 24 for over 12 years during which time he has served as secretary, vice president and chair of the Meetings Committee. John's Automotive Care is also currently an ASC Educational Foundation Cars for Careers donation site for San Diego, CA. Listen to John's other episodes HERE
      Dave Kusa is the owner of AutoTrend Diagnostics in Campbell, CA. Dave is very active in Chapter 42 and currently serves as a board member and chapter representative. He has also helped several new shops become ASCCA members. Dave advocates with local legislators on behalf of small businesses and their employees. He contributes to TeamTalk and is a huge resource for members. He was ASCCA’s past president. Look for Dave’s other episodes HERE.
      Key Talking Points
      Purpose - Raise funds and money to support and encourage technical education and training for the automotive industry through scholarships, endowments, career development and other industry inspired programs. Vehicle donations from customers that go to auction- “cars for careers” Example- transmission/engine repairs. You are able to donate a vehicle  no matter where you are, it’s not limited to only California Low overhead- about 75% of the money coming in from the vehicle donation program gets put into funds. Volunteer-based foundation. You don’t need to be a shop owner to be included in the board of trustees (tax advisor, grant writer etc) Last year they awarded 28 scholarships to 16 deserving students for a total of $23,500. To date, this is the largest amount awarded in the history of the Foundation. Schools involved - community colleges across California such as Cuyamaca College, Skyline College, Rio Hondo College, San Diego Miramar College, Citrus College, Chabot College, UTI Vetting process – Scholarships are awarded to students who fill out applications at https://automotivescholarships.com/ all applicants that meet basic requirements are then scored by a panel of automotive professionals and winners are picked from the highest scoring applicants. Opportunities to create a scholarship- John has started a scholarship with his business. He will match whatever his employees put into it. There are also one time scholarships for smaller amounts.  
      Connect with the show:
      Aftermarket Radio Network
      Subscribe on YouTube
      Visit us on the Web
      Follow on Facebook
      Become an Insider
      Buy me a coffee
      Important Books
      Check out today's partner:
      Since 1989 TRACS has been the industry’s leading shop management system. And in the last 30 years it’s gotten better and better. Today TRACS Enterprise offers even more of the features AutoCare Center owners want—things like a powerful interactive scheduling calendar, faster and streamlined work flow, plus streamlined parts ordering and purchasing options. And there’s more—Punch-out to Mitchell ProDemand, mobile VIN capture, and multi-shop capabilities. That means you can count on TRACS Enterprise to help drive your success today and well into the future. Learn more about TRACS Enterprise and the hundreds of other benefits the NAPA family has to offer. Talk with your servicing NAPA store or visit www.NAPAAutoCare.com.

      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      Tim Allbritten, Director, Business Development and Market Research at BG Products
      John Hanighen, CEO at Cloyes Gear and Products
      Paul McCarthy, AASA President. Paul has over 23 years of experience in the automotive industry. Prior to joining MEMA, Paul led the Automotive and Industrial Products Strategy Practice at PricewaterhouseCoopers (PwC). He consulted at dozens of automotive suppliers, eight of the top ten global automakers, and at private equity firms and financial institutions. His past leadership roles include heading PwC Germany’s Automotive Strategy advisory practice and leading global forecasting and analysis for a prominent vehicle forecast service, Autofacts. Paul has an MBA from Duke’s University’s Fuqua School of Business.
      Find Paul’s other episodes HERE.
      Key Talking Points
      It started month 1 of the pandemic  Brand names won’t risk quality  Every day is a new challenge for manufacturers  When is it back to normal? Recast the question “when does it get better?” Improving fill rates and collaboration up and down the supply chain Data planning is essential for forecasting and making better decisions  Allocation- always have the “recipe”  Pricing- packaging costs, inflation, supply/demand, raw material pricing by SKU. More questions are being asked which requires more pricing knowledge and transparency.  Container pricing- $1,500 to 18,000. Airfreight has also increased.  Economic trends- travel is increasing It’s a demand problem not a supply chain problem- it is a good problem, heavy dependence on the automotive industry.  Connect with the show:
      Aftermarket Radio Network
      Subscribe on YouTube
      Visit us on the Web
      Follow on Facebook
      Become an Insider
      Buy me a coffee
      Important Books
      Check out today's partners:
           
      This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion global automotive aftermarket industry and has everything you need to stay ahead of the curve.  AAPEX 2021 is in the record books and lived up to presenting leading-technical and business management training from some of the industry’s best and brightest. Now set your sights on Las Vegas in 2022. Mark your calendar now … November 1-3, 2022, AAPEX - Now more than ever.

      This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com/carm
                   
      Click to go to the Podcast on Remarkable Results Radio
    • By ASOG Podcast
      Looking through the videos taken at #aapex and #sema. This event is simply can't-miss.
    • By carmcapriotto
      Rachel Spencer (Shop Owner), Spencer's Auto Repair, Krum Texas
      Roddy Blaylock (Shop Foreman) Barton Automotive, Wadesville, IN
      Clint White has been passionately immersed in the Automotive Industry for over 25 years. He is a Service Advisor Coach & Shop Consultant with CWI and currently holds multiple ASE certifications. He began his career as a Technician at a local two-bay shop in 1995 and over the course of the next two and a half decades honed his sales, technical, and management skills while living in Washington & S.E. Idaho. During his journey, he has never stopped learning and has been blessed to work for and with those who value education, training, and coaching. In everything he does, Clint is focused on people and excellence! Whether it be coaching & training Service Advisors to sell with passion & integrity or working directly with Shop Owners to improve team accountability and streamline process implementation, Clint’s passion is to elevate the Automotive Industry across the nation to ensure every customer consistently receives the highest level of service.
      Contact Clint White HERE
      Clint's Previous episodes HERE
      Key Talking Points
      Reality check-  The world around us has drastically changed yet many in our industry continue to operate as though it hasn’t. Replacement vehicles are significantly overpriced and inventory is severely limited. RESULT:  Customers MUST repair what they own and they know it! Technicians are in short supply and many shops are understaffed. RESULT: Same-day service is harder (or impossible) to deliver on, yet we keep trying? Parts are harder to find and slower to be delivered leaving Vendors stretched thin. RESULT:  Repairs take longer, especially when we choose to wait for the best quality parts. Sell correctly- have properly trained service advisors. Sell with confidence that it will be pushed back, don’t make it sound negative. Make it a positive experience. Build cushion when scheduling out. Continue to provide exceptional customer service. It’s time to prepare for the future- things won’t “go back” to the way it was and it shouldn’t Scheduling is like chess, plan your moves, close the expectation gap with customers, staff, and vendors. under-promise/over-deliver The importance of communication between technicians and service writers-updates- everyone needs to be on the same page SOP’s- Develop habits and have structure Proper mindset when repairing vehicles- reduced/eliminated comebacks improves moral and elevates self-worth The Dualistic Shop:  In order to schedule workflow effectively, we must view our shops as if they are actually “two in one”; operating independently but in perfect harmony while under one roof. Diagnostic Facility- all testing, inspecting, DVI’s and LOF’s occur FIRST. Bay management is maximized as cars rotate in and out once testing/inspecting is complete. Repair/Production Facility- Scheduled & Pre-Sold repairs are performed after all testing & DVI’s are completed for the day. Time Block Scheduling Example- Each Technician’s productivity potential and efficiency percentages must be known. Schedule each Technician at 87.5% of what they are capable of producing daily. Tech capable of 8 hours of production in an 8-hour day is 100% productive. 8 hours X .875 = 7 hours. Leaves 1 hour a day open for walk-in’s, emergencies, catch up from yesterday Connect with the show:
      Aftermarket Radio Network
      Subscribe on YouTube
      Visit us on the Web
      Follow on Facebook
      Become an Insider
      Buy me a coffee
      Important Books
      Check out today's partners:

      This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com

      Are you seeing auto shops in your area get hundreds of 5-star Google reviews and are you feeling left behind because your shop only has a few?
      Hey look, Broadly is your answer to getting more online reviews. With more reviews, your business will rank higher in search results — and that means more customers coming into your shop every day. Broadly helps you automatically request reviews so that your customers can promote your business with just one click. When you immediately ask for a review after service, when the experience is still fresh in their mind, you’re more likely to get a 5-star positive review. Plus, asking for feedback makes your customer feel valued and more connected to your business. Isn’t that what you want a connected customer? See how Broadly can help grow your auto shop.  Visit www.getbroadly.com/chat to learn more.
      Click to go to the Podcast on Remarkable Results Radio


  • Our Sponsors



×
×
  • Create New...