Pricing & Estimates

[CAautogroup]

I'd like other shops opinion on how they handle pricing. Do you guys display your most common prices in the waiting room? We currently make estimates valid for 30 days, what are your thoughts? Do you give a discount if a customer sets up an appointment that way you know you have a job for the days work?

 

 

Thanks

[phynny]

Estimates are good for 2 weeks and we don't for discounts for scheduling. We use Mitchell for time and then I add around 15% more time or more if its rusty.

[Joe Marconi]

I don't show prices in the waiting room, except for a bundled package, which is a promotion with value, not a discounted service.

I also try not to make price a main focal point. Even showing prices of standard jobs, in my opinion, can send the wrong message. Promote who you are, not what you charge.

 

Most of us are not discounters either, like Wall Mart or Sears. With companies like Sears, the discount price is the real price. When WE discount services or repairs, we reduce our profit margins. Every discount is paid for by someone, that someone is the shop owner.

 

If discounts are used to increase car counts, you will always need to discount to maintain traffic to your shop. And, profit margins will always suffer.

 

I feel that we should position what makes us different and the value and benefits of doing business with us.

Once you go down the road of promoting discounts, it's like a drug. People look for the discounts and it will be hard to go back to regular pricing or raise prices.

Focus on the quality of the service and repairs. Create packages that have value, rather than discounting services. Identify you prime customers and take of them, they will bring you the greatest return and bring others like them to you.

Just my thoughts.

This is a complicated issue, sorry to get long-winded.

[bigdonstang]

Good point Joe. I've got some customers "hooked" on dirt cheap oil changes as the result of a promotion we ran. I thought it would be a good way to get new customers in the door and have a chance to look there vehicle over. The bad thing is they would come in and it would be hard to sell them on something as basic as a much needed air filter, belt or even a tire rotation. Then it gets worse. Next time they show up expecting to get that same rock bottom price on an oil change and then act like you're committing highway robbery when they get the standard price. Meanwhile the customers car is falling apart at the seams, you haven't seen them since the last discount oil change, none of the recommended repairs have been done and the oil is about ten billions miles overdue. I mean I try to help these people but when they can't even scrape ten bucks together when I offer a rotation and balance what do you do? How do you offer value to someone who can't even afford to pay attention?