Why Give Away Wheel Alignments?

[Frank]

I recently read a survey in a trade magazine showing the average national price on 4-wheel alignments. The survey contained mostly tire shops. What I surprised (and disappointed) to see was how low priced some shops charged for the average 4-wheel alignment. In some cases as low as $49.99. Don’t we give enough away? We all know that an alignment system with a rack can cost upwards of $35,000.

 

It’s funny, with bodywork, the insurance companies will either pay us a menu price or give us the time from a recognized published labor guide, which for some cars exceed 1.5 hours. Even at a labor rate of $70.00, a labor time of 1.5 is $105.00. Is the alignment service just another commodity doomed to be priced low such as the common oil change?

[Martinelli]

I recently read a survey in a trade magazine showing the average national price on 4-wheel alignments. The survey contained mostly tire shops. What I surprised (and disappointed) to see was how low priced some shops charged for the average 4-wheel alignment. In some cases as low as $49.99. Don’t we give enough away? We all know that an alignment system with a rack can cost upwards of $35,000.

 

It’s funny, with bodywork, the insurance companies will either pay us a menu price or give us the time from a recognized published labor guide, which for some cars exceed 1.5 hours. Even at a labor rate of $70.00, a labor time of 1.5 is $105.00. Is the alignment service just another commodity doomed to be priced low such as the common oil change?

 

I agree, shops that work on volume price their services low and when repair shops charge the price we need to we are seen as high. Then I find myself explaining why I charge more.

 

I have found that lowering the price of an alignment I am doing more, but I won't give it away. I find over the course of a day that the law of averages works in my favor. Sometimes it may take a while (Audis) but some alignments are done very quickly.

[Undercar]

I agree, shops that work on volume price their services low and when repair shops charge the price we need to we are seen as high. Then I find myself explaining why I charge more.

 

I have found that lowering the price of an alignment I am doing more, but I won't give it away. I find over the course of a day that the law of averages works in my favor. Sometimes it may take a while (Audis) but some alignments are done very quickly.

[Undercar]

These kids do not do a proper alignment any more dropping the price and making it harder to sell an alignment

[xrac]

These kids do not do a proper alignment any more dropping the price and making it harder to sell an alignment

 

If you have a good alignment/suspension tech you can find and sell a ton of front end and suspension work. That is one reason why we keep our alignments a little lower than we would like. We get a lot of suspension work and sell a lot of camber kits. We have a very good suspension tech and there is a lot of bad front end parts that are missed by shops.

[Joe Marconi]

Right on target. There is a lot of money in steering and suspension work, if you have the right people.

 

Most shops in my area do not do alignments. This gives me a competitive advantage over them.

 

What cars do you sell camber kits on?

[Southeast Tire Co.]

We personally run a $55 alignment special for most vehicles. We also give a free alignment with the purchase of 4 new tires. It was said above, and I agree, that alignments generate a ton of front-end work. It is also, in my opinion, the easiest to sell. The customer is typically in the waiting room (rather than a drop-off) and I can bring them out there and physically show them the issue. It is a strong selling point and a great money-maker.

 

I view alignments the same way as I do oil changes: A way to get a customer in the door, get their information in the database, and start them on a regular maintenance program.

[Joe Marconi]

We personally run a $55 alignment special for most vehicles. We also give a free alignment with the purchase of 4 new tires. It was said above, and I agree, that alignments generate a ton of front-end work. It is also, in my opinion, the easiest to sell. The customer is typically in the waiting room (rather than a drop-off) and I can bring them out there and physically show them the issue. It is a strong selling point and a great money-maker.

 

I view alignments the same way as I do oil changes: A way to get a customer in the door, get their information in the database, and start them on a regular maintenance program.

 

Do you think that due to increased competition, many shops are using more and more services as lost leaders? Major companies put items "On Sale" as a way to bring people thru the door, but the truth is the "special sale price" is still sold at a profit. Some times the promotional sales price is the actual price of the particular item. When we "give away" lost leaders as a means to gain a customer base, are we losing much needed profit?

 

I bring this up only to stimulate conversation, I want to hear from other shop owners and how they market lost leaders and other forms of marketing to bring new customers in.

[Southeast Tire Co.]

Do you think that due to increased competition, many shops are using more and more services as lost leaders? Major companies put items "On Sale" as a way to bring people thru the door, but the truth is the "special sale price" is still sold at a profit. Some times the promotional sales price is the actual price of the particular item. When we "give away" lost leaders as a means to gain a customer base, are we losing much needed profit?

 

I bring this up only to stimulate conversation, I want to hear from other shop owners and how they market lost leaders and other forms of marketing to bring new customers in.

 

 

Competition is certainly the driving factor for me. My main competitors in the area are larger shops or corporate chains. They spend quite a bit on advertising in both mail and radio. I can't afford to do as much of this but I do have a great location on a high traffic street. So I run specials like this to get people in the door. I run oil change, alignment, and free rotation specials all of the time and it really increases traffic and leads to bigger jobs. Because this shop is a newer location for me (just passed 1 year), I am more concerned with growth than I am with profit. My other locations (which sell only tires) generate the profit I need to run my overall business. Therefor, my main goal after break-even with my service location is to build my repeat customer base and increase overall community "buzz". I have found that, by doing this, I am building a loyal customer base and gradually attracting the more profitable jobs.

 

If this were my only location, and I was dependent on it for my livelihood, this strategy would never work. But, since I am able to do this, I feel it gives me a key advantage over my competition and will eventually allow me to grow to the point that I can eliminate some of these lost leaders and realize more profit.