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Walkin customers get better pricing than you when YOU'RE COMFORTABLE? :)


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I'm going through reciepts to double check profitability. I am stumbling across instances where I am finding Joe Blow off the street getting better prices than us spending $2k per week.

 

This is what i believe happens when a parts house knows "You're comfortable" like Ken was.

 

Over time, if someone is paid commission's on sale (not gp) it is the natural course of what happens. You're comfortable, it's convenient, it's a product of the system. My realtor will "negotiate" for me but how intensely? If I'm asking them to take a pay cut to make a lower offer how enthusiastic will they be? Not very. Product of the system.

 

On another example

I was quoted 3 prices today for gas tank straps on a '98 Tahoe. $130, $133 and $54. I did the extra calling because no place could get it for a week. I'm glad I am not to comfortable.

 

I'm not mad. It is what it is, they all do this and is not because I'm not just "doggedly loyal" to one vendor.

 

 

 

Sent from my SM-N900P using Tapatalk

 

 

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As long as the commercial parts store managers are on bonus and commission programs you'll see the price creep. It really irks me that the smiling sales guy isn't at all our friend. You really want to burn up type in the Dorman or Cardone part number on higher ticket items into google and see what online retailers are selling the same item for to anyone with a pulse. 

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We are trying to make a buck, customers are trying to save a buck.  Can't really blame anybody.

 

I laugh at "part quality" that some mention here.  Lets face it, there are a few major part manufactures around, everything else is just a label stuck on a different color box.

All part quality is sketchy.  Some praise the dealer parts, and while I agree they generally are better, there are still plenty of dealer parts that are garbage.  

 

I just try to buy the best part I can for the best price with the best warranty,  That is the best I can do.  

 

On a side note, I think it is funny that "business minded" people are in big support of Trump, who touts negotiating as being one his strong points.  Unfortunately, in the 2017 America, negotiating is lost trait.  We are accustomed to just paying what somebody is asking, because that is how we have been doing it forever.  I still negotiate part prices, insurance and even some utilities.  I have been paying $34.95 a month for my shop internet for 6  years.  Business plans start over $100 a month around here.  I negotiated to get on a residential plan because I know I am not using anywhere near the data as somebody streaming netflix 24/7.  Does saving $780.00 a year in internet fees make me rich?  No, but it sure helps and is a start.  

Then you have those who get sour grapes over a customer asking why something is costing so much... I hope anybody spending several hundred dollars on a service question why it is costing what you are charging.  I never get upset, I just explain, sell, repair, and move on.  

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  • 1 month later...

Hopefully I didn't make a mistake I had Mitchell prodemand and manager and it was costing me 260 a month I switch to the napa tracs management with prodemand for 169 a month to save money. I am a small shop and mostly deal with napa on parts since they are a block away and the other stores are 20 minutes away.

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  • Have you checked out Joe's Latest Blog?

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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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