Charge Administrative Fees!
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Recording requirements & special fees in your state. A little survey
I'm just about to settle on a software package to run my shop. I've found looking at a number of them that there are a few that don't seem to tick the basic boxes in information gathering that we as registered repair shops are required by law to do. I'm wondering if this is a New York specific issue or if this issue happens everywhere. Would you guys comment on your state requirements. I'd like to pass some more information to the software company I'm working with in hopes that they motivate to make some improvements to satisfy these requirements. Example, in NYS we are required to capture a signature or document approval with the customer complaint to begin work on the vehicle before we touch it. We must record mileage when the vehicle enters the shop and when it is finished. We must state the warranty for each item and the terms and time limit for any guarantee on repair work. We have to collect a non taxable $2.50 waste tire management fee for every new tire sold. We have a state safety and emissions inspection that is varies in fee and is non taxable.By Junior, in Auto Repair Shop Management Help? Post Here!
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Should there be a standard Diagnostic charge
This is an article I wrote several years ago for a trade magazine.... I think it's still true today... Love to hear your comments. Diagnostics fee or not This has been an issue since day one. Should we charge to diagnose the car or should the estimate be free. Let’s define an estimate first. What is an estimate? An estimate is a list of all the parts and labor involved in making a repair. With the possibilities of adding supplements to the original estimate if other work is deemed necessary after the initial work has started. Ok that’s an estimate, or is it…? Let’s try this again. What is an estimate? It’s a guess……. With the chance that I might get it right but more than likely the final bill will be different than what was original “estimated” at. Hmm, the two definitions are different but at the same time mean the same thing… What about the diagnostic side? Ok, how about that… that diagnostic thing. What is a diagnostic? It is the process in which a technician is able to determine the cause or failure of a piece of equipment, vehicle, or appliance. Did ya get that? … One more time … What is a diagnostic? It is the process used to determine the root cause of a given mechanical or electrical problem that has become an issue with a vehicle, appliance or piece of equipment. Sounds the same doesn’t it…. hmm, maybe we are getting to the real issue… MONEY The diagnostics may take some time, may even require a few sophisticated scanners, wiring diagrams, and tools. Time is money as we all know, of course, knowledge, expertise and experience is a commodity that should always be respected no matter what field you are in. A service charge for such “diagnostics” is essential in the continuing financial stability of a shop or for that matter… any service oriented business. Once the diagnostics has been completed an “estimate” can then be given to the customer for their approval. This should also be noted that if a “diagnostics” is preformed and the problem turns out to be “intermittent” or none exciting a fee still applies. The time has already been spent to figure out that there was nothing wrong. That brings up another touchy issue. For some reason the customer feels cheated if you charge for nothing found… now wait a minute, how was it determined that nothing was wrong… ah…the diagnostics lead to that result. Then the problem isn’t the problem anymore, it’s the time spent looking for the problem that is the problem. To ease the customer’s woes you could always give them a time table for future re-evaluations. (30 days is a good round number) Note; It wouldn’t be the first time I have diagnosed a car for a customer only to find out that their complaint is from lack of understanding of their vehicle or dare I say… their just another fruit basket behind the wheel. Now I’m not in favor of a free diagnostics (if you couldn’t tell already) and I’m not too fond of the free estimate. If there is any “man hours” that are part of any job a “man” wants paid. If that “man” is working on a commission basis, I can assure you that he is going to rush through the “estimate” in order to get to the real money end of the job. However a diagnostic is a totally different thing, I don’t think I could have made a living without charging for the time it takes to figure out some of the strange pr oblems I’ve encountered over the years. Some things were easy to diagnose, some took hours. But I believe it’s the standardization of a diagnostic charge that would make things a lot easier for the customers to understand the complexities of today’s problem evaluations. If a tech couldn’t figure out a problem in a reasonable length of time … say an hour… then it’s quite possible the shop is going to be losing money if they kept him on that job. The next best thing would be to move him off that job. Put another tech on who might be able to figure out the problem in a reasonable amount of time. Of course, the shop is already behind the 8 ball, since the first tech didn’t get the job done, but in the long run… it will get done, there will be an estimate for the customer explaining the repairs needed. I don’t know which is more of a problem, the shops out there not willing to charge for estimating… Oops I mean diagnostic time… or the customer who doesn’t feel that it’s a necessary part of the process. Then again, these are not yesterday’s cars. It’s about time there were some standards that everyone in the industry had to go by, be it from the independent side or the dealer side. Regulation or self imposed limits as to how much can be charged across the board for various levels of diagnostics. Not to say diagnosing a bad ball joint is easier than a battery drain, no, not at all. Each field in the industry would have to come up with a balanced set of standards that those involved could agree was a fair price for that type of service. If all the independent shops charge the same fees in a demographic area it would lead to a more even playing field for the customer. Maybe, we should think about using a different term rather than “independent”… we can be independent in ownership, style, quality, etc… but put the customer’s concerns up front. If I wasn’t in the business and didn’t know where to take my car I would really would like to know that I’m getting quality work done at a fair price at any shop I went to. If there was a way to put an end to the “I can get it done cheaper down the street” escapades… my drive home would be a whole lot more pleasant than in the past. . If that didn’t happen it then only comes down to a question of where to have the vehicle repaired at. Everyone has their favorite doctor, dentist, or restaurant. Which is probably based on location, atmosphere, or “ya just like that particular place”. Price is always an issue, and probably always will be. If you’re not getting the job done right at the shop of your choice… choose another one. How many times a day does your phone ring because you have some “price shopper” who is never coming to your shop because your price is higher than the last shop they called… even though they were referred by a friend to call you. Maybe we should focus on better instructional classes, more information, and true manufacturer level scanners available to the independent side of the business. Sometimes too much effort is put on the “Be nice to the customer”, or the preverbal “Customer is always right” routine. The old saying; “If the customer knew what was wrong they would have fixed it themselves” still holds true today. But I’m talking about telling them what’s wrong with the vehicle, not how to fix it. With the advent of the computer age upon us the car has become a rolling updateable, flash reprogramming software jungle of information. The cost of these specialized scanners puts them out of the range of most consumers, and a lot of small shops, which, in some ways, also places the shade tree mechanic on the endangered species list. I can’t tell you how many times I’ve heard the same line from a customer’s after I have diagnosed a problem. “Well, I could have done that myself, I would have looked there for the problem if I had the time, and I don’t know why you’re charging me for something so simple. You should give a break on the price because it was so simple. “Hey, I’m a regular customer I should be getting a discount.” My usual answer is… “So if you knew what was wrong, why did you bring it to me to figure it out?” And, I’m not sure that other professional people you deal with such as a doctor, dentist, or the grocer…etc… is going to give you a discount just because you shop with them on a regular basis. Common sense, the largest lacking component in all of these situations… In my opinion, once common sense is removed from the conversation “stupid” takes its place. I wonder if I could estimate how many times this has happened… maybe so… but I better think about diagnosing it first…By Gonzo, in General Automotive Discussion
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Shop supply fees
I'm just curious what other shop owners charge for shop supply fees. In the past, I've heard various responses; some charge a percentage of the total bill (parts and labor), some charge just a percentage of labor, others charge a flat fee. We've tried a low flat fee in the past but that doesn't prove to even make a dent towards covering the cost of shop supplies. We switched to a small percentage and found that we netted about the same because the quantity of large $ tickets balanced out with the quantity of low $ tickets. Looking to make another change that will prove worthwhile but wanted to get some feedback first. We're in the Eastern PA area. Thanks so much.By TOMSAWYERAUTO, in General Automotive Discussion
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Article: Joe Friday Diagnostics - AGE check--remember Dragnet with Sgt. Joe Friday? Here's my version of the Sarge diagnosing a car
Joe Friday Diagnostics "How would Sgt. Friday explain auto repair and diagnostics… que the music: " The story you’re about to read is true; the names have been changed to protect the innocent. Monday morning, it was cold that day. I was working day shift out of the repair division. There’s a suspicious vehicle at the front of the shop. A customer walks in the door. I’ll take it from here. I’m a mechanic, the name’s Friday. It was a 2003 Ford, 5.4 liter, fully loaded and sounded like it was running rough. The lady came to the counter. “Good Morning ma’am, what can I do for you,” I said to the complaintant. “Yes, I’m here about my car,” she answered. “There’s a problem with the car, I see. What can you tell me about it?” I asked, in my usual non-threatening, but confident monotone voice. “I was on my way to deliver my recyclables to the east side collection area, because I’m a concerned citizen you know, when my car started to make a coughing and clattering sound. I thought I would bring it in to have it checked out,” the owner answered. “Coughing and clattering, hmm, not a problem. I’ll get it investigated, I can interrogate the pursuant this morning, especially for a concerned citizen such as yourself,” I answered while maintaining my professionalism. “Well, do you need any other information from me?” she asked. “Just the facts ma’am, just the facts,” I said. “The check engine light came on,” she reported. “This could be of some help. Sounds like a possible 0300 (engine misfire). But I’ll check it out first, I’ll need to finish my investigation in order to give you any proper results,” I said to her, while my pen was busy jotting down the facts onto the always present handy notepad. She left the car with me for further interrogations. Using the scanner made the results easy to locate. It wasn’t long before I got an answer. It was a P0302 in progress… misfire on no#2 cylinder… normally an open and shut case. 09:30 Am, working on the assumption that the perpetrator was somewhere near the 2nd cylinder; I went in for further investigations. I checked the usual suspects. Pulling the plug didn’t yield any new clues. The plug was good and answered all the standard questions. The coil was a more likely suspect; a simple test could answer the problem. I’ll set up a little sting operation by using a decoy. Taking the nearest coil and replacing it with the suspected faulty coil, and put the known good coil on the other plug. I was hoping to see the miss move to the other cylinder. It didn’t. In fact it was gone. 10:05 Am, Now the challenge was on. I’ll have to go back over my facts and check the crime scene again. There’s something I must have overlooked that might be the key to this investigation. Two things come up as good possibles; the connection or terminals at the coil, or the spark plug boot attached to the coil. The plug boot had a good alibi… it had just been changed, in fact so was the spark plug. That left the coil connection. A more in-depth interrogation of the connector is needed. My years of technical diagnostics work told me to look closer at the wire and the connector. The guilty party in this case appears to be one of the wires at the connector. It was barely hanging onto the housing. Only the plastic sheath was still connected, and the wire itself was not answering to any of the standard questioning or interrogative tactics. Under the intense glow of the high powered shop light the investigation continued. Resorting to some strong arm tactics I pulled on the wire while using a few choice investigative words, the plastic sheathing kept getting longer and longer. Soon, it snapped under the pressure to expose the desperado for the perpetrator it really was. 11:45 Am, The repair was completed, and tested to verify the repairs were effective. The car in question was back with its rightful owner by the end of the day. I now can close the file on this one, another job well done. In conclusion: With the P0302 in question deleted from the computer history, the coil connector was then convicted of failure to cooperate. With her car back on the road she could once again be a productive concerned citizen of this great metropolis. Case closed and now, back to the front desk waiting for that next problem to come through the door. This city is full of broken, non-maintained, and poorly running cars. As a concerned citizen I’ll be on the lookout for these suspicious misfires and other infractions of the auto world. There are thousands of men and women in this city, who know that being an auto tech is an thankless, grease covered job that's done everyday without any fan fare. Then again, I'm part of that glamourless, grease covered world... my names Friday, I'm a mechanic.
View full articleBy Gonzo, in AutoShopOwner Articles
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How to charge for on-line help
So we all use various on-line help systems to find difficult problems...how do you invoice those costs to your customer? It seems like between monthly subscriptions for shop management software and help software costs the profits keep slipping away...help!By theboss20, in Auto Repair Shop Management Help? Post Here!
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