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You are higher that the dealer!


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I had a lady the other day, who drives a Caddy CTS, tell me the that our prices are higher than the dealer. We did a Mobile 1 oil change service (6quarts), checked it for a any needed service at HER request (all was ok), sold her a wheel alignment and 4 wheel balance because she was complaining of a hi-speed shimmy and that she has hit a lot of pot holes over the winter.

 

The price with tax; $202.56

 

How would you respond to this claim???

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Joe our prices for the same thing would be about $180.00. Considering the part of the country you are located in and costs in that area it doesn't sound like you are out of line. Unless the dealer is running some type of special promotion there is no way a Cadillac Dealer is less than that. Just remember that you can't make everybody happy. A funny thing about Cadillac CTS owners is that the ones we have had who drive these cars are either tight wades or broke. They all hate spending money on repairs and CTS take constant repair. In my opinion CTS drivers are wannabes and I put PT cruiser drivers in the same category.

 

How about an answer that we want to do good service and be competitively priced. We periodically compare our prices to similar service providers and have determined that our prices are both fair and competitive and that our pricing allows us to be profitable enough to employ qualified people who can provide quality service.

 

I agree, I really don't think my prices are out of line. We do the same thing and compare with similiar businesses. I also agree with you that this person is a wannabe Caddy owner and really should not be driving this car.

 

I just needed to hear it from someone else. Thanks!

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The 2 CTS' I've had in my shop were both Leased vehicles. Of course, people who lease don't think they should have to perform any maintenance on their own dime. Your price is right in line with what it should be. There is no way the dealer would have been the same.

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The 2 CTS' I've had in my shop were both Leased vehicles. Of course, people who lease don't think they should have to perform any maintenance on their own dime. Your price is right in line with what it should be. There is no way the dealer would have been the same.

 

Thanks, glad to hear that. You start to wonder sometimes when people say things like that. I knew the price was fair, just wanted to throw it out there to make sure. Thanks again.

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I had a lady the other day, who drives a Caddy CTS, tell me the that our prices are higher than the dealer. We did a Mobile 1 oil change service (6quarts), checked it for a any needed service at HER request (all was ok), sold her a wheel alignment and 4 wheel balance because she was complaining of a hi-speed shimmy and that she has hit a lot of pot holes over the winter.

 

The price with tax; $202.56

 

How would you respond to this claim???

I always wondered.... why is it that "our" price has to be lower?? Who sets the standards?? the dealer?? Sometimes I think it's just the nature of some types of people to bitch at whatever the cost. I've got some stories on this subject... I should post one of them... AH, customers... gotta love em' Whether they are right or wrong... in their eyes your still wrong... another day in paradise.

Edited by Gonzo
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I always wondered.... why is it that "our" price has to be lower?? Who sets the standards?? the dealer?? Sometimes I think it's just the nature of some types of people to bitch at whatever the cost. I've got some stories on this subject... I should post one of them... AH, customers... gotta love em' Whether they are right or wrong... in their eyes your still wrong... another day in paradise.

 

Gonzo, I had that argument at a shop owner's meeting a while back: Why do we have to be lower than the dealer? If they lower their prices, we have to lower our prices too? Is there some unwritten law?

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Gonzo, I had that argument at a shop owner's meeting a while back: Why do we have to be lower than the dealer? If they lower their prices, we have to lower our prices too? Is there some unwritten law?

 

Joe, this is one subject that I can't understand how it's even an issue. You know, sometimes, I "feel" like I'm higher than the dealer, but, I'm a specialty shop dealing mainly in odd ball electrical problems that no one else (even the dealer) doesn't want to touch. So how the hell is my price proactive with another shop... go figure.

 

My biggest argument is: If you go to hospital "A" and have a surgery... it's going to be one price.... go to hospital "B" and it's entirely different. Same with a dentist, a plumber, the way a bank charges for their services.... hell, even a resturaunt doesn't charge the same for the same meal. So why is it expected that we... the people that keep you moving on this countries roads and byways be "cheaper" just because "YOU" say so.

 

That's my story... and I'm stickin to it... LOL

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Joe, this is one subject that I can't understand how it's even an issue. You know, sometimes, I "feel" like I'm higher than the dealer, but, I'm a specialty shop dealing mainly in odd ball electrical problems that no one else (even the dealer) doesn't want to touch. So how the hell is my price proactive with another shop... go figure.

 

My biggest argument is: If you go to hospital "A" and have a surgery... it's going to be one price.... go to hospital "B" and it's entirely different. Same with a dentist, a plumber, the way a bank charges for their services.... hell, even a resturaunt doesn't charge the same for the same meal. So why is it expected that we... the people that keep you moving on this countries roads and byways be "cheaper" just because "YOU" say so.

 

That's my story... and I'm stickin to it... LOL

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That MOTOR Magazine article says it all. I laugh at the old saying: "I'm telling all my friends that you're a rip off... etc.. etc.." My answer... friends like that... keep em' and I'm happy they are not going to be coming to my shop. On the other hand... I'll bet your friends know exactly what your like... so it's no surprise to them that "you act like a jackass".... I'm grateful to them all.... glad your gone ... FOOL! !

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That MOTOR Magazine article says it all. I laugh at the old saying: "I'm telling all my friends that you're a rip off... etc.. etc.." My answer... friends like that... keep em' and I'm happy they are not going to be coming to my shop. On the other hand... I'll bet your friends know exactly what your like... so it's no surprise to them that "you act like a jackass".... I'm grateful to them all.... glad your gone ... FOOL! !

 

 

I tell them--[ opinions is like asshole's every one has one ! ] You are right most pepole are intelligent that they no thier is two sides to the story. I have had clients say I am going to tell so & so and so on . I have called some of the friends and they tell me we know how they are we still will be your clients.

Doesn't happen often , but when it does it is upsetting.

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I tell them--[ opinions is like asshole's every one has one ! ] You are right most pepole are intelligent that they no thier is two sides to the story. I have had clients say I am going to tell so & so and so on . I have called some of the friends and they tell me we know how they are we still will be your clients.

Doesn't happen often , but when it does it is upsetting.

 

 

So true Dan, I have to admit it doesn't happen often but when it does... it really gets to a guy. Over the years you get to the point you can almost tell when it's going to happen by the customers reactions... read my book... you'll see what I mean. Gonzo

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  • Have you checked out Joe's Latest Blog?

         13 comments
      Most shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple?
      The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels.
      Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer?
      And lastly, are all the estimates written correctly? Is the labor correct for each job? Are you allowing extra time for rust, older vehicles, labor jobs with no parts included, and the fact that many published labor times are wrong? Let's not forget that perhaps the most significant labor loss is not charging enough labor time for testing, electrical work, and other complicated repairs.  
      Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.
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