Will You Price Match your repairs or service?

[Joe Marconi]

The other day, a customer asked my service advisor, if he would price match a set of tires.  This customer got an online quote from the internet; a local TIre Store know for discouting tires. 

My rule, I don't price match. My prices are competive and fair. 

Would you price match just to get the job, and sacrifice profit?   Remember, no one really knows the true cost of any service or repair until the car is in the shop.  So, internet quotes are not set in stone.   

[JustTheBest]

Hi Joe! I understand what you're saying - but I respectfully disagree in one way. First of all, I know tires are NOT a profit center. Additionally, you're correct about the discount tire suppliers online. Nobody in a repair shop with real world overhead could compete. 

But the issues I ran into with my shop was that I often offered a 100% price match guarantee - for the same job. Let me explain. I did a lot (and I mean a lot) of A/C repairs. I even had local retailers that would just send the car to us because "adding a little refrigerant" didn't work. 

When doing a quote for a repair - typically a large repair like compressor replacement - ($6-7-$800 or more!) I would always tell my customer that I wouldn't just MATCH a competitive price - but I would BEAT IT TOO! - But only on the identical job. 

Here's the rub. When doing compressor replacement, most shops don't (and won't) bother to do all the steps. No high side flush - no expansion valve or orifice tube replacement - no drier replacement - or any of the other supporting services. They would slam a compressor on the car and then hope for the best. 

In other words, if you want the job done right, there wasn't anyone who would beat me for the SAME JOB. After all, we did 8-10 big a/c repair jobs a day! We had a system that worked. 

So with respect to tires, I get it. You can't compete with the online retailers - and I wouldn't ever suggest that a shop does. But when it comes to other work, you have to be able to communicate to your customer that you WILL match the price - FOR THE SAME JOB! When you dig into it,  you can quickly see where other shops cut corners. In fact, a shop could even make this part of their USP (Unique Selling Proposition) where they "Won't be beat!". That's beyond the scope of what we're talking about here - but it can work. 

Hope this helps!
 

Matthew
"The Car Count FIxer"

P.S.: Join me on YouTube at Car Count Hackers! FREE Help to grow your Car Count, Income and Profit! 
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[Joe Marconi]

Matthew, all great points.  Which I do agree with.

Before I would even entertain a price match, let's match it line by line.  In the 40-plus years in this business, I have never seen a job matched up the same exact way. There is always something left out or the parts are not the same, or the warranty is not the same, or there's something else that makes their job different from mine.

We all know how so many play the game.  ABC Auto gives a customer a price for a water pump, thermostat, hoses and labor. The customer calls a competitor and asks, “How much is a Water Pump?" (Neglecting to mention all the extras) The competitor gives a down and dirty price on only the pump and labor.  Which makes the "perception" that ABC auto is priced too high.  

With tires is worse. This particular company advertises online pricing for the tires only. When you book your appointment and arrive at that tire store, they then explain the labor to install, and upsell the wheel alignment.  Often making thier price higher than mine or other shops. 

Here's the bottom line for me; I don’t sell parts and labor.  I sell relationships and trust.  And through the years, I have been successful with that strategy.  I learned a long time ago that If I want to have a quality shop and afford to pay my employees a very good wage, I need to attract the consumers that appreciate the work that we do.

Now with that said, if I get an objection about price, I will offer options.  I find that when people are left in control and decide between A or B, and not yes or no….A Sale is Made.

Thank you for the great conversation!  This is how we learn and grow!

Joe 

 

 

[JustTheBest]

HI Joe! Thanks for the response and point. I think the most important matter you brought up was .... 

2 hours ago, Joe Marconi said:

let's match it line by line

You're 100% bang on. I never sold tires because there wasn't any money in them, so I can't speak to those matters but you're right. Tires aren't the complete job. Mount, balance, alignment, etc. is what the customer isn't thinking about. The most "mysterious" a system is... like A/C or Check Engine diagnosis - the more complicated it gets the more "ABC Auto Shops" mess with the price to get the job, regardless if they fix it or not! 

But with all that said, I think you said it best when you said "I sell relationships and trust". 

If all the other shops did that - I'd be out of work, so let's just keep this between us, okay!

Thanks again!
Matthew

[dfrisby]

The issue I've had recently is people ordering their tires online, and then wanting us to drop everything to install them today. My tire prices are competitive with all other shops around and even the big box store. I can't and won't attempt to compete with online prices for the tires. My mount and balance price is $80 for a set of 4 plus disposal and valve stems if required. My markup on automotive tires is a minimum of $20. When they buy online, they are in turn taking $80 away from me.  Yes, I'll still install the tires. No, I won't drop everything to do it. Schedule at least a day or two in advance to drop off car and it'll get done same day. I'm not going to move a profitable job to the side for a customer that wants to bring his own steak to the steakhouse to save a couple bucks.

[newport5]

Briefly,

I’m opposed to price matching. Even just the IDEA of pricing matching. That’s not to say that I’ve never done it.  But …

First, you just taught your customer how to get your price down next time.

Second, since you did it this time, you’re somewhat ok with it and you’ll do it next time.

Third, think of the time it took to get to the point of comparing “line by line.” The research, phone calls and the actual time going over the “line by line” comparison with explanation. All that to make less money ??

Think of it: your customer takes 15 minutes to a half hour to find and call three shops for quotes and saves $100 with you. That’s $200 to $400 an hour for them.

Instead, build up such a relationship with your customers/clients/friends that they trust you are taking care of them (and yourself) at a fair price.

If your customer is calling other shops for price comparisons, you are probably “selling” parts and labor. I’m close with Joe, but instead of “selling” Relationships and Trust, I’m Building Relationships and Trust.

More later …

[JustTheBest]

Hi newport5! I understand your position. In all honesty, I typically didn’t have to do a “line-by-line” comparison because most of the time, I initiated it with the customer. I know, sounds crazy - but like I said, I was real heavy in A/C service. Most shops would ONLY quote on the compressor - so my offer was that I would NOT be undersold - for the same job. 

In addition to that, if there was a question, the customer would end up back at MY SHOP. Again, it was a little different than what you’re explaining.

But with all due respect, I’m going to tell you that YOU probably price shop - and you may not even realize it. Do you shop at Walmart? Target? Costco? Well, I am willing to bet that you could get most of your purchases from ANY ONE OF THOSE - instead of going shopping to each one. 

It’s pretty much the same thing! And besides, if the car owner didn’t consider auto repair as a COMMODITY, then they wouldn’t do it. So when they price shop - they’re really telling you that your shop offers the same service as any other one. 

Hope this helps!

Matthew
"The Car Count FIxer"

P.S.: Join me on YouTube at Car Count Hackers! FREE Help to grow your Car Count, Income and Profit! 

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[JustTheBest]

Hi CAR_AutoReports!

On 11/29/2019 at 10:40 AM, CAR_AutoReports said:

price matching tires is a cheap way to get that person in the door and dazzle them with the rest of what you do and why your value proposition far exceeds whoever they are trying to compare you to.

Exactly! But it doesn't stop with just getting them in the door. I can't believe how many shops I see drop the ball on this. On average, a shop has LESS THAN a 27% chance of that new customer returning for another visit - and nobody does anything to inspire that to happen! 

But when it comes to price matching... or customers calling to "ask how much something is"... aka Price Shoppers... you said....

On 11/29/2019 at 10:40 AM, CAR_AutoReports said:

Large marketing firms have completely commoditized the very services we all rely on to survive and profit from, forcing all of us to change our landscape in ways we couldn't ever imagine 10 years ago.

Bingo! Auto repair is a COMMODITY and nothing more! At least, the way the consumer sees it - and that's because shops don't take the time to invest in their brand and "STAND OUT". 

Typically, shop owners hind behind their website! They use a bunch of stock images that are "stolen" from sites online - but people want to do business with PEOPLE - not names and businesses! 
What about a simple stupid thank you card! No, not one that looks like a billboard - I'm talking about a cheap thank you cand that's mailed to the customer! (Can't tell you how many shop owners have told me about the surprise their customers got - from a stupid, simple thank you card!

I know a shop owner who basically locks himself in his office and let's the service advisor handle customers - even when they ASK ABOUT HIM! 

Auto service is considered a commodity because of how shop owners refuse to invest in their own brand - don't entice customers to come back - and then just call them cheap, price shoppers. Ha!

Hope this helps!

Matthew
"The Car Count FIxer"

P.S.: Join me on YouTube at Car Count Hackers! FREE Help to grow your Car Count, Income and Profit! 

P.P.S.: Like and Follow Car Count Hackers on Facebook

P.P.P.S.: Have you registered in my FREE Training? "How to Double Your Car Count in 89 Days"

Find out How one shop owner banked $9,780.39 in Bottom Line Profits!

[sparkerauto]

We don't do any price matching as most of the customers that are shopping for price only, are not what we want. We strive for regular customers that will return for more services, not just a one time deal. We want the relationship, not just the sale. 

[Network Auto Body]

@Joe Marconi You said that right. 

Quote

There is always something left out or the parts are not the same.

Deserve attention towards O.E.M parts, repaint work done is not satisfactory, repair guarantee might be differ or sensing a difference in the way your vehicle handles. Improvement are key to ensuring and maintaining the highest possible level of satisfaction among the customers. Competition heads neck-to-neck in repair shops. The customer rely on quality and cost of service.  A happy customer is one who will come back whenever they need help. Because the customer estimates the labor rates to various shops in nearby locations. Our biggest challenge is to adapt latest technology, while repair cost will minimum to our valuable customers.

[Joe Marconi]

Imagine....You walk into Starbucks....You ask for a large cappuccino.  The cost? Over 4 bucks with tax.  You ask the barista if she could match the price from the local deli across the street….$1.95. 

You tell me what would happen. 

And for those who say it’s not the same. It is.  

[ATSAutomotive]

We do not price match, I didn't pull a number out of a hat to put on an estimate.  My estimate is specifically designed based on my needs.  Parts are marked up according to what I need to be profitable, same with my labor rate.  If your looking for the best price in town, I am not it.  I am a professional and I want you to come to my business because of the service we provide, not because of my prices.  Also why are you guys not making any money on tires??? Marked up 43% for 30% profit.  I am not a tire store, I am only going to install tires if I am making money.  Let the tire stores whip tires in and out.  We have a diagnostic and repair work to do. 

I would like to say I think some owners need to slow down in their day.  Being busy is just an illusion of being profitable.  Bust in to your books and build your prices based on what you need.