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Have Some People Kept Their Cars Too Long?


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I am starting to see more and more customers who have been holding off on certain services, and now at a point where they do not care anymore. They would rather roll the dice. These are customers that have close to 200k, and somtimes over 200k on the clock and have been hit by the recent recession.

 

We did keep their cars rolling with needed repairs, but they totally avoid doing anything with respect to preventive maintenance. Some of these customers are still riding around with the original plugs and T Belt. But at this point they are just waiting to hopefully replace the car soon.

 

Have you seen this too in your area?

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Yes, I am seeing this. In my opinion, this is a ruined customer to a certain degree. You will have to balance your perspective as to what kind of revenue you will expect from this type of customer if he is the type that is rolling the dice.

 

If they have neglected maintenance, any major work you do, they may expect the car to be "fixed" for another "long" while, just to be back in the following week.

 

If they have been the regular maintenance customer, I am not afraid to keep up their cars since I have probably replaced struts, wheel bearings and other major components.

 

The point is, don't get stuck with neglected old clunkers, ask for deposits, and always watch your bottom line like a hawk!

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New car sales are experiencing sales that are showing very promising signs to a recovery of sorts for some, this good news is for those twisting wrenches on the newer stuff (collision services) that rely heavily of the dollar value of repairs needed not exceeding the thresholds set up by those who profit from someone else s loss (Insurer and re builder of salvage) as salvage has been in record territory at the auctions for the past several years.

 

As for keeping them running for as long as possible consumers can be suggested to but never demanded of and should a VO (vehicle owner) choose to negate necessary services we can not "Not" service them when asked to.

 

Just pity the folks who purchase the old cars showing up with little or no service records and the song and dance by sales people how well this car has been meticulously maintained all the years it's been in service with the previous owner. Pity? Perhaps but certainly it's all business all day!

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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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