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Cheats and Saints, Game Theory and The Golden Rule

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My son sent this link to me, he explained that the creator of this application show mathematically why those of us that care for our customers win, and also why some cheats prosper so much. Great application, worth your time if you want to understand why developing trust and excellent communication with your customers is critical.


Edited by HarrytheCarGeek
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    • By jfuhrmad
      I have the hardest time understanding the ethics in this industry.  It's like the auto repair industry has it's own set of ethics and expectations that are completely different than any other industry.  It's absurd!  Look at it:
      1) Billing for 100% of Time - Lawyers do, doctors do, accountants do, plumbers do, phone companies do, and employees do...however, shops are supposed to stick to the estimate come hell or high water.  Otherwise we are gouging or padding our time, or just adding random time.  It's crazy!  It's a double-standard that we allow to be placed on us.
      2) Selling Only What Customers Need - People don't need 2 TVs, or 10 pairs of shoes, or bottled water, or Apple products, or bubble gum.  Yet none of these industries are considered unethical for selling people something they don't need.  Why are we unethical for selling people something they "don't need"?  How did that happen?  Don't go the wrong way with this...I'm not proposing telling people their car is broken when it isn't.  I'm saying that right now our industry is in a position to bow to the customer any time they don't feel like the "need" a certain repair because they'll pull the unethical card on us.
      3) Marking Up Parts - Why are we the only industry that is unethical for marking up things that we sell?  Hardware stores do, restaurants do, plumbers do, Wal-mart does, O'Reilly's does.  But for some reason, certain customers expect us to sell parts at our cost.  Why not at O'Reilly's cost...or at Moog's cost?  What is the ethical price?  Is anyone allowed to make a profit selling parts?  If so, who is and why only them?  It's just crazy when I think about the unbelievable expectations people have for our industry.
      Here's my theory for how we got into this position.  When we are desperate for customers we'll do anything they want.  And it's much easier and less risky (so we think) to give into them by knocking the price down than it is to spend time teaching them about what they just bought or are about to buy.  There's so much focus on shop efficiency that we don't take the time to develop customer relationships and educate them about the benefits of buying from us.
      It isn't a waste of time to teach customers about their car, to show them why we are proposing a certain repair, or to explain every item on the invoice.  If we don't then people will continue to expect us to sell parts at cost, eat unexpected labor time, and not perform a proper repair all in the name of ethics.
      We have to put a stop to this.  Our industry generally isn't unethical (we have 7 shops in my town of 12,000 and only one is shady) but we accept that moniker.  We don't have to.  I certainly don't.
      Does anybody else think the expectations on our industry are just plain stupid?