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Has Gas Prices and Other Costs forced You to Raise Prices?


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Sell your car with CarBrain


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Well, I believe that everything should get raised annually, but keep your lost leaders (oil changes, etc) at the same price points, if you can. Adjust your pricing to reflect your cost of doing business. Labor and parts increases on larger jobs. Maintenance increases where needed, after doing a market survey in your area.

 

Common service prices should be set according to a competition survey.

 

Other prices should be set according to overall GP.

 

Price marketing should be used effectively as needed (yes, I will beat you on that timing belt job if I have stuck techs).

 

Many shops will get behind the curve during the rapid inflation which is not underway....and it will kill many of them.

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The biggest thing anyone can do is trend tracking/graphing of all key numbers to see which direction they are headed to prevent getting behind.

 

Also, constant monitoring of GP and expense figures.

 

Keeping your costs down and not losing any customers is key. I'd rather drop the price than have them walk out the door!

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I fear price wars. Has this become a trend in our industry to stay alive?

 

Almost all types of businesses almost always have price wars. It's the intensity that varies. The intensity in our industry is picking up and will likely grow significantly soon.

 

A few shops will be able to stay out of it. Most will not if they want to be a player. Many who ignore it may get run over.

 

The trick is, if you need to get into the battle, is to maintain decent GP. There are many ways to be price competitive without simply lowering the price. One just needs to be creative in what they offer.

 

Different levels of parts, service, what is included, and warranty are some examples. Adjust to what the customer wants while remaining profitable instead of focusing on what you think they should want.

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      My son is not in the automotive industry. He is in the commercial real estate business. However, the workplace problems are the same. Recently, his frustration with the heads of the company reached an all-time high. When I asked him why he doesn’t speak up and let the leadership know how he is feeling, he responded, “Anyone who has voiced concerns or issues has been viewed as weak and incapable of doing their job. I don’t want to be viewed like that.” This is an example of a toxic work environment.
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