Quantcast
Jump to content


Quick Lube Price Increases


Recommended Posts

We've been encouraging each other to raise prices to meet our business profit needs on the Labor Rate thread and I mentioned oil change pricing being more commoditized.   I was really afraid of changing my basic oil pricing.   Well, we made a big change yesterday and I'm nervously watching the reactions.

In my mind, when gas hits $3/gallon is the time to raise prices, which in Texas is a pretty recent event.   It happened, but there was little overall noise, so I sheepishly waited.   Thursday night I go to bed, thinking nothing of this.  Friday I wake up, watching the news and it dawned on me that the news cycle was all about inflation.  It was the RIGHT TIME to act!!!   (In truth, it likely was the wrong time because the right time was long ago, but I digress).    So, I did an area pricing survey and found that I was priced in the bottom 40% of the field.  I was actually late to act.   Starting on Saturday, we've raised our prices about 25%.    I know some of the other shops are also planning price increases, but we are now priced in the top 20% instead of the bottom 40%.

We've not had anyone walk out due to pricing.   We've had but 1 grumble so far.   We will get some pushback eventually, but I was really surprised that it was not immediate.  Shame on me for not acting sooner.

Now, back in August 2021, we did raise prices on our European Oils and received almost zero pushback.   But, this was expected.  They are thrilled to get such a bargain compared to the dealer.    In some instances, I'm actually higher than the dealer.  In most cases we are maybe 25-40% less.

I remain nervous because we might see silent pushback... that is, they pay this time, but seek someone else for next time.   I do believe that the rest of the market will be moving soon, so the search for yesterday's prices might be futile.

  • Like 1
Link to comment
Share on other sites










  • 3 weeks later...

Well, I'll have to say that this has gone both good and bad.   I'm going to explain what I expected and what I'm seeing.    I'm partially surprised... in a good way.

With this being an often used service, it's possible that folks remembered what they paid the last time.    Right now, for each customer, we are quoting the price for the service before starting.  We solicit a positive affirmation.    We don't quote the price for repeats that are not experiencing a price change as we've always done.    We are not explicitly calling out the price increase.    If a customer comments, then we have that conversation.    Our repeat customers are saying ok.   I don't think anyone has walked over it.  They may or may not return for the next visit, so it's TBD.

I really expected an Indian Revolt.  We have a lot of Indian customers who appear to be price sensitive, but most are not reacting.   As a group, they tend to negotiate the most, but I've learned that they were often cheated in their home country, so they do value honesty.  But the old ways of haggling seem to be hard to shake.

Many customers, both old and new, simply say ok.   No reaction to the pricing at all.   I expected more reactions from new customers, but this has not materialized.   Having said this, we are seeing a increase in the number of "no thanks" abandonments.   1-2 weekly has moved up to 1-3.  Much smaller than I feared. 

But, we get lots of phone calls asking about price before arriving and with these, I believe that we are taking a hit, but it's a gut feeling only.   Are they price shopping, or planning their budget for the month?  You can't tell.   We know that some do come after this call.  Until the local market pricing stabilizing, I'll be losing all price shoppers, which is ok.   We weren't the lowest to begin with and still aren't.

I send out post service surveys and did get one back from a fellow that said:  "You don't need to make 80 dollars on a 15 minute change."  (his analysis on my costs)  He's a VW owner and my VW guys don't always realize that they are driving Euro vehicles.   He did not do the service.   In the same note, he said:  "I want to come here for things because everyone is friendly and knowledgeable but I can't pay $$$ ..."    There's the catch... what kind of service do I want?

In the end, it was the right thing to do. Timing was good, but my have been ok sooner.  At least, we have a scapegoat in the news.  May need to do it again sooner than I expected with this inflation.

Link to comment
Share on other sites

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
  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
  • Similar Topics

    • By nptrb

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By carmcapriotto
      In this week’s episode, Hunt gets into the financial intricacies faced by auto repair shop owners, from refinancing debts and selling shops to securing new mortgages in today’s unpredictable market. He explores the strategies and tips to steer through the banking hurdles and optimize your financial operations.
      • Market Update & Interest Rates: Starting with a quick market update, Hunt discusses the current state of interest rates and how they're affecting both personal and commercial loans. Despite the unchanged rates by the Federal Reserve, the historical highs are impacting mortgage affordability and commercial borrowing costs.
      • Loan Acquisition Challenges: The episode sheds light on the complexities of acquiring loans in the current financial climate. Hunt discusses the often opaque criteria banks use to approve loans, offering some tips for what shop owners can do to increase their chances of securing financing.
      • Listener Q&A and Acknowledgments: A special thanks to listeners for their engaging questions in the previous mailbox episode. Your curiosity fuels our content, and we’re here to address your concerns, guiding you toward informed financial decisions for your auto repair shop.
      • Rapid Fire Tips for Financial Management: Closing the episode, Hunt offers some rapid-fire advice for managing your finances better, from understanding the nuances of loan interest rates to practical tips for ensuring your business stays liquid and prepared for any financial challenges ahead.
      Thanks to our partners, NAPA TRACS and Promotive
      Did you know that NAPA TRACS has onsite training plus six days a week support?
      It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.
      Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com
      It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
      Paar Melis and Associates – Accountants Specializing in Automotive Repair
      Visit us Online: www.paarmelis.com
      Email Hunt: [email protected]
      Get a copy of my Book: Download Here
      Aftermarket Radio Network
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      Thanks to our Partners, AAPEX, NAPA TRACS, and Automotive Management Network Rich Falco and his twin sons, Zack and Tyler, discuss the intricacies of family business succession in the automotive industry. The Falco's share their personal experiences, emphasizing the value of learning through challenges and the significance of understanding both the technical and business aspects of the industry. They explore the dynamics of customer interaction, continuous professional development, and the evolving nature of automotive technology. Rich Falco, Diag on Demand, Instructor at Carquest Technical Institute. Listen to Rich’s previous episodes HERE Zack and Tyler Falco, Diag on Demand. Show Notes
      Watch Full Video Episode Succession and grooming (00:00:51) Discussion about succession, grooming, and growing young talent in the automotive industry. Training and learning experiences (00:01:34) Rich discusses letting his sons fail and learn while working together in the business. Challenges of being a mobile technology specialist (00:04:10) Zack talks about the challenges of being a mobile technology specialist and learning to interact with customers. Learning from experience (00:05:29) Zack and Tyler discuss their learning experiences and the importance of admitting when they don't know something. Future of the business (00:09:04) Rich discusses the challenges in generating revenue and the potential changes in the industry for mobile work. Working together as a family (00:15:10) Tyler shares his experience of working with his dad and brother, highlighting the dynamics of their working relationship. Learning from Job Experiences (00:16:05) The speakers discuss the continuous learning experience and the value of mistakes in their work. Passion for Working with Hands (00:19:00) Zack expresses his enjoyment of working with hands and the satisfaction in understanding the technical aspects of his work. Diagnostics and Gray Areas (00:19:47) The conversation delves into the complexities of diagnostics, the gray areas in the auto repair industry, and the appeal of clear-cut logic in technical work. Changing the Perception of Technicians (00:22:18) Challenge the traditional perception of technicians and advocate for a shift towards recognizing them as technology specialists. Transition to Advanced Technology (00:23:44) The conversation highlights the transition to advanced technology, including the need for specialized equipment and the future of automotive technology. Business Education and Succession Planning (00:25:40) The importance of business education, succession planning, and the need for understanding the financial aspects of the business are discussed. Client Experience and Problem-Solving (00:29:34) The significance of following up with clients and the emphasis on problem-solving to build strong relationships with customers is highlighted. Succession and Family Business (00:32:39) Discussion about the succession and future of the family business with Rich, Zach, and Tyler Falco. Thanks to our Partners, AAPEX, NAPA TRACS, and Automotive Management Network Set your sights on Las Vegas in 2024. Mark your calendar now … November 5th-7th, 2024. AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at http://AAPEXSHOW.COM/WEBINAR NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Get ready to grow your business with the Automotive Management Network: Find on the Web at http://AftermarketManagementNetwork.com for information that can help you move your business ahead and for the free and informative http://LaborRateTracker.com Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections            
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      Welcome to this episode of "Business by the Numbers," where we dive deep into the often controversial topic of tax fairness. Join Hunt, as he explores if the wealthiest among us are really shouldering their fair share of the tax burden.
      • Defining 'Rich': How income levels and perceptions of wealth vary across different regions and impact tax contributions.
      • The Progressive Tax System: A closer look at how the U.S. tax system scales with income and what that means for the top 1% of earners.
      • Real Figures: We break down recent statistics to understand the actual tax contributions made by high earners.
      • Beyond Income Tax: Examining other significant tax obligations faced by the wealthy, including sales tax, property tax, and surtaxes.
      • Debunking Myths: Addressing common misconceptions about tax evasion among the wealthy and what the data really shows.
      Thanks to our partners, NAPA TRACS and Promotive
      Did you know that NAPA TRACS has onsite training plus six days a week support?
      It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.
      Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com
      It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
      Paar Melis and Associates – Accountants Specializing in Automotive Repair
      Visit us Online: www.paarmelis.com
      Email Hunt: [email protected]
      Get a copy of my Book: Download Here
      Aftermarket Radio Network
      Click to go to the Podcast on Remarkable Results Radio


  • Our Sponsors










×
×
  • Create New...