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By Elite Worldwide Inc.
Whenever a customer tells you they can’t afford to do the repairs, and they ask you if you can help them out “this one time’”, you need to give careful thought before you lower your price.
First of all, there is a cardinal rule in sales that says before lowering your price, you need to build more value in your service. Yet as we all know, there are going to be some occasions where no matter how good your sales skills are, the customer simply won’t have the ability to pay for the recommended services. In such cases, you and your advisors will have three options. One, you can let the customer walk; two, you can drop your price; or three, you can follow the proven path we have provided to tens of thousands of advisors over the years.
First of all, if you let them walk, both you and the customer have lost. They’ve lost the time they’ve invested in having their vehicle inspected, and when they leave your shop their problems still exist. You’ve lost the marketing dollars you invested in bringing the customer through your door, you’ve lost the time you’ve invested in inspecting the vehicle and estimating the job, and you’ve lost the opportunity to help someone in need.
The second option you have is to lower your price, and while you may close that sale, you’ll also be sending a message to your customer that if they wouldn’t have asked for a discount, they would have paid too much. If that’s not bad enough, it gets worse, because they know if they ever decide to come back they’ll need to negotiate with you, regardless of the prices you quote. The good news is, there’s a third option, and it’s one that’s used by the top shop owners in America with great success….
Putting first things first, you’ll need to see if the customer qualifies for any legitimate discounts you offer, such as Senior Citizen, AAA or Military discounts. You can also limit the number of repairs to the ones they can afford at the time. Another option (which works well in some cases), is to scale back on some of the benefits, such as the length or terms of the warranty. If you and your customer find none of those solutions to be acceptable, you can consider telling them that you will keep their vehicle at your shop (space allowing), and perform the repairs if and when your time allows (when another customer cancels their appointment at the last minute and your tech has the downtime, for example). What your customer would be sacrificing is the immediacy and convenience.
Please bear in mind that when making any decision to lower your price, you need to ask yourself who is ultimately going to pay for the discount, because the answer will inevitably be your other customers. Secondly, if you have the right advisors, with the right principles, they’ll know in their hearts it’s just not right to charge two people different prices for the same service. To put it another way, I’m sure you would not want your mom or dad walking into any business and buying a product or service when you know the customer right before them… paid less. Never forget, principles, not shell games, lead to two things: higher profits, and the ability to sleep at night knowing you are not playing games… with other people’s money.
Since 1990, Bob Cooper has been the president of Elite Worldwide Inc. (www.EliteWorldwide.com), a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers the industry’s #1 peer group of 90 successful shop owners, training and coaching from top shop owners, service advisor training, along with online and in-class sales, marketing and shop management seminars. You can contact Elite at [email protected], or by calling 800-204-3548.
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A new law in New Jersey forbids the sale of unsafe used tires. The legislation, signed by Gov. Chris Christie on Aug. 7, 2017, was supported by the U.S. Tire Manufacturers Association (USTMA), Tire Industry Association and the New Jersey Gas Station-C-Store Automotive Association.
The law fines businesses that sell tires that exhibit any of these unsafe conditions:
— tread depth of less than 1/16 inch measurable in any groove;
— damage exposing the reinforcing plies of the tire, including any cuts, cracks, bulges, punctures, scrapes or wear;
— improper repairs, including, but not limited to:
any repair to the sidewall or bead area of the tire; any repair made in the tread shoulder or belt edge area of the tire; any puncture that has not been sealed or patched on the inside and repaired with a cured rubber stem through the outside of the tire; any puncture repair of damage larger than 1/4 inch; — evidence of prior use of a temporary tire sealant without evidence of a subsequent proper repair;
defaced or missing tire identification number;
— inner liner or bead damage; or
— signs of internal separation, such as bulges or local areas of irregular tread wear.
Violators will be subject to a fine up to $500 for a first offense. A second offense will be considered a violation of the Consumer Fraud Act and subject to a penalty up to $10,000. Additional violations will be subject to a penalty of up to $20,000.
Anne Forristall Luke, CEO and president of the USTMA, said, “New Jersey has taken a bold step to protect motorists from high-risk used tires that have no business being put back into service on New Jersey roads."
The USTMA says its research shows more than 30 million used tires are available for sale nationally. The legislation does not ban all used tire sales. It targets used tires that have specific, well-established, unsafe conditions
The National Highway Traffic Safety Administration (NHTSA) says worn-out tires are three times more likely to be involved in a crash than tires with sufficient tread depth. NHTSA crash statistics indicate about 200 fatalities and 6,000 injuries are attributed to tire-related causes annually.
The law was sponsored by Democrats Shavonda Sumter and Raj Mukherji.
Sumter said, "What initially seems like a good deal ultimately can be deadly in the market for tires. Retailers who sell damaged tires to consumers endanger not only their customers but also everyone else on the road. Banning the sale of damaged tires simply is a common-sense matter of public safety."
Mukherji said, "Drivers in New Jersey should be able to buy tires and rest assured that the items they've purchased are safe. The lower cost of used tires does not warrant putting lives across the state at risk. Damaged goods that put consumers in danger simply should not be on the market, especially when it comes to tires."
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I wanted to ask a question that no one can give me straight answer on. I know in the past on any normal vehicle when you rotated the tires you wanted the best tires in the front (I'm talking about lets say a Ford Taurus). Several years ago I see the Michelin video where they put two Ford Taurus's side by side with one vehicle having the new tires in the front and the other vehicle having the new tires installed on the rear. Per the NHTSA they state accidents occur or loss of control mainly begins with the rear end losing control therefore you want to have your best tires on the rear? So with all the experts out there and I've also asked many other owners what they think but mainly I'm still seeing "best tires in the front". What are your thoughts? Thanks guys. I'm excited that I found this site!