Quantcast
Jump to content


Your Price is too high! Or is it too low?


Recommended Posts

I received an email today from a Consumer stating "Your price is too high, so hell with you sir!" in response a marketing email inviting him back for his next service.   My initial reaction was uh-oh, quickly followed by "Why am I not hearing more pricing complaints?".   This is quite interesting as we were in a discussion last week, talking about our prices being too low.   We are priced competitively in the market, but with a higher service level, likely, we should be able to earn more with a higher pricing.

I remember reading somewhere that if you don't have enough complaints of your price is too high, then you are priced too low.    There is a balance in pricing.   On one hand, we have price leaders nearby (, with prices so low that they would go broke quickly if they were honest) that will rob the price shoppers blind when they visit as well as other reputable shops with various pricing levels.   

I operate a combo lube and repair shop.     My repair labor rate is a premium to the area and we have talented technicians that rate this premium.    I'm at a small premium on the Lube, but believe it should be higher and .    

After having a chuckle on today's email, I figured it would make for a good conversation.   What is the right Price-is-too-high-complaint rate?  1% 5% 10%?     We might get a 0.5-0.3% abandon rate at the counter over pricing.  I'm sure that there is a silent minority that just doesn't come back, yet makes no noise.

  • Like 1
Link to comment
Share on other sites

  • 3 weeks later...

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Similar Topics

    • By Joe Marconi
      For many shops, business during the winter can slow up due to a number of reasons.  What I have found that works is to schedule a flood of service reminders and past recommendations to go out during the months of Jan and Feb.  Maintaining touch with your existing customers is a great way to keep your shop top of mind, and it may just bring in a little extra work too.
      Any winter marketing tips to share? 
       
    • By carmcapriotto
      Shop Owner of the Year: Jamie and Eric Carlson, Ervine’s Auto Repair and Grand Rapids Hybrid, Grand Rapids, MI. Years in Business: 28. Number of Full-Time Technicians: 3. Number of technicians with ASE Certifications: 3
      Eric Carlson, co-owner of Ervine's Auto Repair & Grand Rapids Hybrid, has been a technician for over 45 years. His formal automotive education came from Ferris State University where he took all 8 ASE tests prior to graduation in 1977. Eric has been recertified every 5 years since. He took the L1 when it was introduced and is now L3 hybrid certified. Eric is a subject matter expert for ASE and has participated in writing test questions for the L3 test. Eric has been named NAPA and ASE's technician of the year 5 times. Jamie Carlson, co-owner of Ervine's Auto Repair & Grand Rapids Hybrid. She loves her job and is very proud of how her shop has kept ahead of technological changes to stay relevant and customer-focused. Her shop was awarded the 2018 ACE (Auto Care Career and Education) Award in recognition of her dedication to investing in the growth of their employees' knowledge and skills through access to professional development and career opportunities. Jamie is also nurturing the next generation by working closely with her daughter, Megan Dineff. Megan was named one of Ratchet + Wrench magazine's All-Star winners for 2019 and Auto Care Association's 4 for the Future Impact award in 2020.
      Technician of the Year: Matt Fanslow, Lead Diagnostician/Shop Manager, Riverside Automotive, Red Wing, Minnesota. ASE Master Certified Technician - A1-A8 and L1 #ASE-1597-7187
      Matt's primary responsibilities are to diagnose driveability and electrical/electronic issues, and perform most all programming, coding, initializing, adoptions, etc. Basically, if it needs to be figured out or has wires, it goes to Matt. He’s been a tech since 1996. Matt is also a subject matter expert for ASE and has instructed at Vision Hi-Tech Training and Expo. Matt has participated on 18 ASE technical committees for the ASE Practice Test, A6, A7, A8, and L1 tests. He’s also done case studies for Standard Motor Products. Fanslow’s goal is to do everything in his power to improve the overall level of professionalism within the automotive and light truck repair trade and also raise the level of its public image. Matt Fanslow’s Previous Episodes HERE.
      Service Advisor of the Year: Brittany Schindler, Service Manager Rod’s Japanese Auto Care Bellingham, WA. Years in the industry: 11 years. Brittany loves working at the shop and being able to help people every day. Brittany has learned so much over the years by going to classes with great trainers and having a great business coach. One of her main focuses is to raise the standard of the automotive service and repair industry. Listen to Brittany’s previous episodes HERE
      Key Talking Points
      Rebranding Grand Rapids Hybrids- ½ the cars that come in are hybrids, over 6 cars a day.  Networking groups- wisdom and knowledge shared by other professionals. It’s essential for growth.  Reinforcing the hard work, time and investments  Training- online and in person Family in the business- shared values, ethics  AAPEX- training classes, networking and learning. Go to booths, ask questions, get contact information Connect with the show:
      Aftermarket Radio Network
      Subscribe on YouTube
      Visit us on the Web
      Follow on Facebook
      Become an Insider
      Buy me a coffee
      Important Books
      Check out today's partner:
      Gold Certification recognizes top tier NAPA AutoCares with a high level of participation in the AutoCare program. The program was built by AutoCare Centers for AutoCare Centers to provide a consistent consumer experience, maximize technology leverage, and reward NAPA’s most committed partners. In other words, Gold Certified AutoCare Centers are the standard bearers for the AutoCare brand nationwide. Simply put, the Gold Certified NAPA AutoCare program, powered by your local shop brand, will separate you from the rest helping you boost your bay counts and your average repair orders. Learn more about NAPA AutoCare, Gold Certification, and the hundreds of other benefits the NAPA family has to offer by talking with your servicing NAPA store or visiting www.NAPAAutoCare.com.

      Click to go to the Podcast on Remarkable Results Radio
    • By Joe Marconi
      One of the lessons from COVID is for repair shops to have a strong cash reserve.  Shop owners need to budget their money each week, and allocate money to different bank accounts, such as payroll, operating expenses, taxes, etc.
      Another account I would recommend is to have a Cash Reserve account, where money is allocating each week, and not touched unless their is a emergency, such as an economic downturn and or if an economic emergency occurs in your area or with your company. 
      While no one could have predicted the affects from COVID 19, I think we can all agree that being cash strong is a viable strategy.
      You should have anywhere from 3 to 6 months of covered expenses in a separate bank account.  I know, I know....it's a lot of money. Start slow and build each week. Anything set aside is better than nothing. 
      Of course, to have a reserve means that you need to have the profit to put away. Right?  Well, another reason to know your numbers, revisit your pricing and make sure your labor rate is enough to support your payroll, operating expenses and have enough left over to set aside money for the unexpected.
      Trust me, you'll be glad you did. 
       
    • By ASOG Podcast
      A pleasant surprise from Kim & Brian Walker of Shop Marketing Pros.
    • By carmcapriotto
      Bill Nalu is President of Interstate Auto Care in Madison Heights, Michigan and has been in business for 30 years. He collaborates with industry professionals, in building today’s “high-tech/old-fashioned” customer service system. Bill has been a big contributor to the podcast and he currently serves on several industries and educational advisory councils including AutoValue/Bumper to Bumper, Dorman Industries, and Cardone. Listen to Bill’s previous episodes HERE.
      Key Talking Points
      What are you grateful for? The world isn’t ending. Stop comparing yourself to the content coming at you.  When you make a decision to move forward, don’t turn around and second guess yourself Leadership comes through gratitude Hire compliments to yourself Suffering comes from judgment  “Air smells the best and freshest after a hard rain” Awareness- isn’t that you’re having a thought, but that you are aware you are having a thought. That is your consciousness.  Learn from other people’s second chances before you have to be the one to learn from your second chance. You must have balance.  Compassion- there’s more going on in people’s lives than you know about If you want respect, respect someone into respecting themselves Consumerism- willing to pay extra  Do you hire for work ethic attitude? Do you love what you do for a living Suffering comes from judgment- wean yourself off of the judgment that you have centered around you, judgment that comes toward you, and judgment that you place on yourself   The grass isn't always greener  Book “Who not How” LINK "Every Life Has a Story" Chick Fil A LINK  Connect with the show:
      Aftermarket Radio Network
      Subscribe on YouTube
      Visit us on the Web
      Follow on Facebook
      Become an Insider
      Buy me a coffee
      Important Books
      Check out today's partners:
           
      This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion global automotive aftermarket industry and has everything you need to stay ahead of the curve.  AAPEX 2021 is in the record books and lived up to presenting leading-technical and business management training from some of the industry’s best and brightest. Now set your sights on Las Vegas in 2022. Mark your calendar now … November 1-3, 2022, AAPEX - Now more than ever.

      This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com/carm

      Click to go to the Podcast on Remarkable Results Radio


  • Our Sponsors



×
×
  • Create New...