Quantcast
Jump to content









How are Your Garage Prices Coping With these High Inflation Times.


Recommended Posts

Firstly let me say that I an just a regular guy from the UK who is the owner of a seven bay service centre/garage. I am not a financial expert. The dreaded inflation is upon us again. For the guys as old as me then this is nothing new. Back in the 70,s we had 15% inflation, but we all got by and lived for better trading days. Here in the UK we have always looked up to the USA because of your business prowess. So what do you guys look out as your worst enemy!

When prices are going up then I find that the gap opens between rich and the poor's disposable income. So this question will effect garage owners in different areas. My garage is in a poor area with many immigrant families who drive cars. So this means we have to be more flexible with pricing. Finding out if your customer can afford that service ! For this reason we devised a three tier service pricing structure. This has also the effect of not loosing your profit margins. 

The lowest price should include an oil and filter change and a general vehicle check over. This way we find the customer will perhaps be able to afford a service and your profit margins wont drop. This is just one small idea that we carry out! What do you guys do in these times of high inflation ? 

Link to comment
Share on other sites


As a New BannerBuzz.com Customer You Get 20% Off Your First Order! Use Code: FIRSTORDER for 20% Off Custom Banners, Decals, Marketing Materials, and Any Custom Print Needs! Offer Does Not End


As a New BannerBuzz.com Customer You Get 20% Off Your First Order! Use Code: FIRSTORDER for 20% Off Custom Banners, Decals, Marketing Materials, and Any Custom Print Needs! Offer Does Not End


As a New BannerBuzz.com Customer You Get 20% Off Your First Order! Use Code: FIRSTORDER for 20% Off Custom Banners, Decals, Marketing Materials, and Any Custom Print Needs! Offer Does Not End

On 9/12/2022 at 12:57 AM, Eric Roberts said:

My garage is in a poor area with many immigrant families who drive cars. So this means we have to be more flexible with pricing.

Well, if your poor are anything like my poor, it's a priority issue.   The iPhone 14 just came out and I can't be seen in the soup line with an iPhone 13.  What would people think?    They have disposable income, it's a matter of how it is disposed of.   I find most low income people spend WAY more than I do.  I'd never pay the outrageous costs for Door Dash, but some of my lowest paid employees will do this often.   They could drive the 1 mile themselves and save an hour's wages in the process.  They could use my refrigerator make or bring their lunches. 

Snide marks aside, I do have a number of low income people who value their car as an important means for their survival.   They want good service and will prioritize it.   Granted, this is a small percentage. 

How are we dealing with inflation?   Markup and rate increases.  We have to survive.   All costs are inevitably passed onto the consumer.   Redirect their ire at their inflation loving politicians.

We offer financing plans thru 3rd party vendors for some people if it helps them (3/6 months same as cash).

Link to comment
Share on other sites

Coming into 2022 we were able to see the direction inflation was going. I scheduled quarterly labor rate increases of 2.5% this year. I also scheduled 10 1% increases for pay across the board for the staff. It was not a "pay raise". It was just trying to keep even with inflation. A cost of living adjustment. It was recognized and appreciated by the staff. The unfortunate part is that it probably is not enough. Our inflation is calculated differently that it was in 1979+.  Currently energy and food increases are left out of the cost of living. How can you live without energy and food? I believe from my observation our actual inflation rate is 15%.

The good news is the no one has complained about the rate increases and business seems to be holding up well. Our market is higher end Euro and Asian products.

Regards to all

 

Mike

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?

    • By Joe Marconi in Joe's Blog
         7
      There are many things to consider when creating a marketing plan. Among them are establishing a budget, what forms of media should be used, and whether traditional advertising, such as TV, radio, and print, is still relevant.  And of course, how much should be allocated to social media and digital advertising?
      All the above are essentials to any marketing plan. However, the first step is ensuring that you have a healthy workplace and that your employees understand your company’s culture and the overall mission and vision. 
      We all know that happy employees create happy customers. No form of advertising can overcome a toxic workplace with unhappy employees. If your employees are not creating an amazing customer experience, your marketing plan will not work.
      Advertising and marketing may bring in customers, but the people in your company creating an amazing customer experience will be the most important component of your marketing plan.  It’s the customer experience that sells work and gives the customer a reason to return. 
      Creating an amazing employee experience, which creates an amazing customer experience, is also the most cost-effective part of your marketing plan. In fact, it cost next to nothing.
  • Upcoming Events

    No upcoming events found
  • Similar Topics

    • By Joe Marconi
      Not to bring politics into this conversation, and whether we like it or not, the Electric Vehicle push is on. And in a big way. 
      We need to prepare for EVs, implement EV training, and invest in new technology.
      The question is how aggressive do we need to be at this point? 
       
    • By ASOG Podcast
      Dealing with BAD Customer Service: How to Handle It When You Expand Your Business
    • By Joe Marconi
      Perhaps this is a trick question, but it's worth a discussion.  Many auto repair shops spend a lot of money to get new customers. But what about the ones we have already?  
      What marketing strategies do you have to attract new customers and retain the ones you have now? 
    • By Joe Marconi
      Back in the 1990s, some shop owner's feared that fuel injection, 100 mile spark plugs, the elimination of the Distributor cap, rotor and extended fluid services would be our demise. But, that didn't happen. 
      Now I hear many in our industry state that "There is no needed work on an electric vehicle, they are problem free." 
      My opinion, let's not fall into thinking that the EV car will run forever of even for years without needed service.  The EV still has tires, suspension, brakes, and a whole new area of opportunities. It will be different, but there will be a need for the Automotive Technicians and for repair shops.
      Your thoughts? 
       
       
    • Advertise your services or products to passers-by attracting them towards your business
    • By carmcapriotto
      How many jobs do your service advisors have? Who covers when you are short-handed? How many technicians per advisor do you have? Are you using technology and systems to a service advisor’s advantage? How clear are your objectives to everyone in the shop? What are some different pay plan options? 
      Dave Schedin, CompuTrek Automotive Management Systems. Dave’s previous episodes HERE Bryan Kelley, Valley Automotive Repair & Electric, Covington, WA. Bryan’s previous episodes HERE. Jeff Grassman, Carsmart Auto Service, Sumner, WA. Jeff's previous episodes HERE Dave Kusa, owner of AutoTrend Diagnostics in Campbell, CA. Listen to Dave’s other episodes HERE. Key Talking Points
      Service advisor ranked 5th or 6th most stressful job- how many jobs do your service advisors have? Who covers when you are short-handed? How many techs per advisor? Are you using technology and systems to a service advisor’s advantage? How clear are your objectives to everyone in the shop? Building a model with everyone involved and everyone wins- 360-degree view with transparency with the numbers of the business What is your culture? Hiding numbers? It is about the money, but it’s not about the money- the incentive is to motivate and not ‘just enough to get by,’ and it has to be customizable based on their level. The plan has to have a direction. Ask a mentor, coach, peer Incentivizing the behavior- it has to be attainable Future for advisors? Self-check in? Will they be needed? Other compensations, no weekends? Hours of operation M-F? Lunch break schedule? Vacation time? Medical/dental cost paid by the employer?  If you have a family culture, what about the kids or spouse? College fund? Spouse bonus?
      Connect with the Podcast 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: Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com       Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. DelphiAftermarket.com
      Click to go to the Podcast on Remarkable Results Radio


  • Similar Tagged Content

  • Our Sponsors


As a New BannerBuzz.com Customer You Get 20% Off Your First Order! Use Code: FIRSTORDER for 20% Off Custom Banners, Decals, Marketing Materials, and Any Custom Print Needs! Offer Does Not End


As a New BannerBuzz.com Customer You Get 20% Off Your First Order! Use Code: FIRSTORDER for 20% Off Custom Banners, Decals, Marketing Materials, and Any Custom Print Needs! Offer Does Not End


As a New BannerBuzz.com Customer You Get 20% Off Your First Order! Use Code: FIRSTORDER for 20% Off Custom Banners, Decals, Marketing Materials, and Any Custom Print Needs! Offer Does Not End

×
×
  • Create New...