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Posted

The other day one of my techs was replacing front brake pads and rotors on an older Subaru. The caliper bracket bolts were seized and one of them snapped off. This is a common problem and we are well aware of it. We try our best with rust busters and heat, but sometimes nothing works. The tech drilled out the broken bolt and finished the brake job. No problem, right?

 

Here’s the problem, who pays for it? Me,or the customer? I asked the tech if he informed the service writer. He said he did. I asked the service writer if he told the customer and up-sold the repair. The writer told me it was a hard sell just to sell the brakes and felt he could not approach the customer. I informed my service writer that I did not buy the car, build the car or break the car.

 

I did something that maybe I should not have done; I went into the customer waiting room myself and explained the situation and sold the caliper bracket repair.

 

My issue is this. Are they times when we can't charge and we just have to eat it? I say yes and no. That depends on the situation. I also think that this particular writer needs more training in customer relations.

 

What do you think? Charge or not charge? What policy do you have?

Posted
.....What do you think? Charge or not charge? What policy do you have?

 

Sometimes we do and sometimes we don't. Sometimes we sell the parts at our cost, some times we sell the part only with no extra labor, etc. I think my service writer and I need to discuss this because sometimes we are too generous. If we want our business to be profitable we need to at least try to sell these things. On Thursday we had a nice repair approved through my service manager of about $630.00 but when I looked at it I saw that we had omitted any pricing of a serpentine belt that the customer had been told was need and would be replaced. The service writer was going to just eat the belt since it was a profitable ticket but I called the owner and easily sold the belt which effectively added over $100 of profit to the ticket verus giving the belt away. What we must realize is that unsold parts installed cost us in two ways. First the cost of the part (in this case about $22) and the lost amount on the total ticket ( in this case about $80.00).

 

If we want our business to be profitable we need to at least try to sell these things. If we meet too much resistance we may then choose to make off. It doesn't have to be a hard sell.

Posted

I can totally relate to your story too. It happens in my shop. I have expression I use often with my service writers: Be competitive when you need to be, be profitable when you have to be.

 

Too many times, the service writers are thinking with their own wallets. Too many services are discounted because they want to make the sales. I understand this. It's a tough economy today and people constantly complain. The service writers get bombarded all day long from the public and can get gun shy.

 

But, I am with you...in order to remain profitable we need to keep track of every job

Posted

Having had this same thing happen to me as the tech/shop owner, I have just eaten the repair cost. If I had done a close enough inspection to realize that the pins were stuck, I would have charged a little more. Of course, the last one I broke was the pastor of our church so those are a little easier to eat :) If I know it will need them, I price them as part of the repair. If I break them myself, I eat them.

Posted

First, making points with God is a good thing.

 

You bring out a good point: if the inspection was done a little bit better, it would have been easier to charge a little more at that point. I think I will take this approach and also inform the customer beforehand that we may encounter additional problems. In this way the customer is somewhat prepared.

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  • Have you checked out Joe's Latest Blog?

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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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