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I recently did a drivabilty repair on a 1999 Bonneville, a week after all was done the customer called to share his concern about the price of the MAF we replaced. I told him there we many out there and the only ones we have positive results with were the AC Delco new ones. He stated he could buy the same thing for less of course. The sensor cost me over $250 and my margin is 39%. Am I out of line charging this?
And how do you handle price objections similar to this?
By Joe Marconi
I will be presenting the Fly with the Eagles course next week from September 23-26, in San Diego. I will be checking in on the ASO and all the posts. Looking forward to the seminar; I am always amazed by the all the great shop owners I meet.
By Elon Block
Alex suggested I post in this forum.
For those of you that may new to the forum, I have created a blog here with
helpful articles and videos:
We also have a large archive of free training materials on our website:
Let me know if we can be of help to you and your business.
So as a few of you know I got into selling used cars as a supplement to the garage work. It generates headaches faster than it generates cash. Here's what's on my plate for this week: a girl bought a pacifica from me with 90k miles. Paid about $5k. I made $800. Clean car, no issues. I gave her a written 30 day warranty per NY law. That was in February. The first I hear back from her was last week, she is suing me in small claims court for $3,800. Huh? She claims she spent that much in repairs the last month and I'm responsible. So while the car was under warranty it didn't break. In the first 4 months of ownership it didn't break. Now 5 months later and 10,000+ miles something broke and its 100% my fault because I sold it to her. It really blows my mind the mentality of some people. The sad part is if any of my paperwork is out of order I'll probably have to pay her something. If she's friends with the judge I'm really screwed. Since when is a car dealer responsible for the life of a car? I just don't get it.
I am putting this in Non-Automotive Discussion, but my price shopping experience relates to how customers feel and may relate to sometimes in purchasing vehicle maint. and repairs.
The Back Story:
I have been on vacation since June 8th in southeast Europe. I am leaving in two days to go back to the United States. I am here with my wife who is a huge animal lover. To make a long story short their a huge stray dog problem in Europe. Dozens of stray dogs in every village, town, and city you go into. The town we are staying in has a population of around 80,000 and is pretty densley populated. We seen one particular dog the first few days we were here. My wife commented on how ill he looked at that time. Fast forward two weeks later and we seen the same dog again, this time almost dead. He couldn't pick himself up off the sidewalk, was very low on energy and strength and appeared to be dehydrated. I picked him up and walked home with him. We fed and watered him, and took him to a vet to get medication and later shots when he was healthy enough. I couldn't find an appropriate home for him so I decided I am taking him home to the United States with me. I figured I would just bring him on our airplane, but found out later he was too big to fit into the largest cage that is acceptable on the airplane. So I had to go to plan B, fly him on a seperate cargo plane.
I started contacting cargo brokers in the area. As a private individual you cannot just book cargo yourself, it must go through a cargo company. The first company I found was located in Turkey. They were going to fly my dog out of Skopje Macedonia (2.5hrs driving from where I am), send him to Istanbul, and then to Washington D.C. That is the most common route for cargo in this area back to the U.S. The cargo agent assured me that the dog would be fed and watered on layovers. I waited a week for a quote from this company and when I got the quote I almost fell out of my chair, 4300 Euros which is nearly $4800 with exchange fees.
I called around to another company who could not complete the transaction because my dog would have to go into Bulgaria which is a EU member. The EU has some rabies blood test that needs done after vaccination but their is no lab in Macedonia to complete this test at the moment. So I called a Cargo company from the Skopje Macedonian airport. Once again the booked route was from Skopje, to Istanbul, to Washington D.C. The price estimated was 1100 euros. After a few days of talking options and the broker looking into customs requirements the price went to 1580 Euros. I selected this broker and went this route. I didn't get a chance to get into contact with anymore brokers due to time constraints (over a week being wasted by the broker in Turkey).
During this mission to get my dog back to the USA I felt like a customer calling around to auto repair shops trying to price a service. I also rediscovered as to why a customer may feel on the defense whenever talking to a company for a service. I found one price nearly 3 times the amount compared to the competitor. There was also a 40% increase in price from my estimated price to the actual price. I don't know the actual reasons for the price increase, if it was increased due to customs and airline fees, or if it was the broker sensing I was determined to get my dog to the USA and he wanted to profit off of my determination. I also remember why I got into this business, I was an avid DIYer and came from a family of DIYers that rarely sourced out work. I generally DIY projects, and with this one "project" I felt "weak" because I had to rely on somebody else to complete this task for me.
Lots of rambling, I don't know what of this pertains to a customer psychology when choosing a service, I thought I would just share my story.
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By Ron Ipach
December spells the end of 2018, and hopefully you're wrapping up what was a fantastic year for your auto repair shop and business.
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By Ron Ipach
Dear Shop Owner,
Ron Ipach (a.k.a. Captain Car Count) would like to finally share with you his proven 4-step process that he's secretly been teaching to his private auto repair shop clients for the past 21 years, that’ll practically guarantee 2018 to be a blow-out success for you.
It’s January and that means the new year has kicked off in a big way. Even though we're only a few weeks in, hopefully you’re well on your way to having another fantastic year.
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4. Find, hire, and keep that elusive tech you’ve been searching for
Wanted to let you know about a free webinar we did recently with Jeremy O'Neal: "Selling Advanced Diagnostic Services for Maximum Profit" You can watch it here: https://www.repairpal-shops.com/selling-advanced-diagnostic-services/ Jeremy O’Neal has been recognized as one of the industry’s most talented and skilled service advisors. Having worked at independent repair facilities, as well as new car dealerships, Jeremy has developed the best real-world sales training available to the auto repair industry. In this valuable 60-minute webinar, taught by Jeremy O’Neal of Advisorfix, you’ll learn:
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By Ron Ipach
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