Quantcast
Jump to content


You Must Read My Response To Being Accused Of Overcharging


Recommended Posts

The son of a long time customer asked to speak to me. The mother brought her Lexus in for a check engine light issue. The car needed an O2 sensor.

 

The sons issue was over the diagnostic charges. He claimed that even the dealers dont charge for diagnostic testing. I let him speak, without interrupting him, until he was finished.

 

When he was finished I asked him why call me now after all the years the mother has been a customer? He told me that nothing seemed out of line before and as a matter of fact, we saved the mother a lot of money over the years because my services and oil changes are lower than the dealer.

 

So, I asked him: How is it, when I charged less money, you never called me to let me know that? He laughed, but I said, "I'm serious." He laughed again and he did not have much to say after that. I ended with, "The policy at the dealer or another shop has no bearing on my policy, but please keep checking my charges and I do expect a call the next time I UNDERCHARGE you."

 

The conversation ended on a happy note, thankfully!

  • Like 1
Link to comment
Share on other sites



The use of such statements from the un-knowledgeable is a difficult one to deal with as we are all consumers and we all make purchases throughout our days weather a clothing purchase at a local store or a meal out, so the feeling of getting a deal or a good bank for the buck is in the eyes of that consumer.

 

Now should you have cost shifted by inflating one area higher or charge for something not needed "The impeded hoadie valve removal of built up carbon" perhaps would have been easier for them to understand then a professional working on my car utilizing the most updated modern equipment available to get the diagnosis right we need to be paid for this service needed and necessary, fairly honestly and ethically.

 

A local shop here offers the free use of any and all of their scan tools and folks actually pull in and play with them and I guess it works for selling work, and then the big independent tire store offers free diagnostics now they need to educate the staff on just how to use the darn stuff as not every car needs a forward O2 and Cat.

 

Oh well a lingering topic for most shops, but nonetheless a worthy one to start the day with!

Link to comment
Share on other sites

It is indeed a difficult issue. The problem, obviously, is the general public's (aka...consumer/customer's) lack of understanding about how the industry really works these days. The best way I have found to combat this misunderstanding is to explain it in as simple terms as possible to any customers who want to know and I also have found it most beneficial to not separate the diagnostic line item on my invoices. Instead I simply include the diagnostics as part of the repair.

 

For instance, under the labor charges section of my invoice it may say something like:

 

DIAGNOSE AND REPAIR EMISSION SYSTEM MALFUNCTION (CHECK ENGINE LIGHT) -- $150.00

scan vehicle for diagnostic codes

replace oxygen sensor - bank 1 sensor 2 (post catalytic converter)

 

 

This way the customer can see that the labor charge is for the whole repair and will be less likely to question it than if I phrase it as a separate $100 "DIAGNOSTIC FEE" line item. It also helps to use big technical terms like "catalytic converter" that the customer really doesn't understand. It helps drive home the point that YOU are the expert and they probably could not have figured this problem out and repaired it themselves. This eases peoples minds about paying YOU to do it.

 

I hope this helps someone else. It has been very beneficial to me to do it this way.

Link to comment
Share on other sites

For years the value of our profession has been under attack and undermined from the inside out and the top down! You know the mass marketers have push the freebies for years now. (thanks AutoZone....EVERYTHINGS free there! Diagnosis, battery install, whatever...may be wrong but who cares it was FREE and they sold a part!)

 

I guess that strategy depends on the neighborhood. In my neighborhood, doctor visits (ER visit for a runny nose) are.....not paid for by the patient, typically, so it does not always register. I have actually tried that comparison in the past and realized it was absolutely no help.

 

Customer still just don't understand the concept of diagnosing todays cars and the complexity that can sometimes be involved and the need to recoup for that time as well as having no parts associated with that diag time to help with profit margins.

 

I think explaining it to them simply but phrasing it "together" on the invoice is a good idea. One less thing for them to nit-pick l after the fact when their brother in law looks at it and says "they charged you how much just to look at it?"

 

All depends on what buttons work for each customer base.

Link to comment
Share on other sites

I hear this complaint a lot. Being mainly an electrical repair shop it's hard to give an estimate on chasing a wire short or a draw based on, "My brother in-law is a mechanic." type response. I get at least one person a week who doesn't like the cost of diagnostics. I tell them about the same thing Joe told this last guy.

The big difference is the dealership DOES charge for a diagnostic fee, although some of them will hide the cost and not mention it at the beginning. But, you know... they'll get it.

 

 

  • Like 1
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • 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.
  • Similar Topics

    • By carmcapriotto
      Recorded Live at the 2023 Institute Summit, shop owner turned coach Jennifer Hulbert discusses the value of joining a coaching group. Find out what it's like to be in a coaching group with the Institute, and why she is passionate about celebrating other people's accomplishments.
      Jennifer Hulbert, Service Plus Automotive, Calcium, NY. Facilitator for the Institute for Automotive Business Excellence.
      Show Notes
      Has 3 coaching clients- discovering finances, gross profit, structuring segments of business, increasing billable hours, and implementing a parts matrix. Facilitating- a group usually consists of 18 to 20 shop owners. They are assigned a partner, they have an individual accountability partner along with access to their facilitator coach. Have three in-person meetings a year. Part of those in-person meetings is to evaluate the whole shop. Go in,  do a full evaluation of the shop, and give the owner feedback on areas for improvement. The other time is spent with training, and reviewing financial numbers, because if you don't know your numbers, you're never going to grow your business. In between, they have a couple of Zoom meetings as an entire group, and then the facilitator does reach out individually once a month.  Never be the smartest person in the room If you’re not learning, you’re not growing Celebrate other people's accomplishments Joining a coaching company- understand profits, understand the structure of a business, understand your numbers, and structure your finances to make a profit.  “Mama Bear of the Team”- Jennifer wants to see individual employees and their families succeed. Ensuring whatever decision you are making about the company is going to benefit your employees Women can do anything that a man can do Read the book “Traction: Get a Grip on Your Business”- communicate clear goals, build a leadership team, and hold each other accountable. Increased sales by 38% 
      Thanks to our Partner, NAPA AUTO CARE Learn more about NAPA AUTO CARE and the benefits of being part of the NAPA family by visiting www.NAPAAutoCare.com Connect with the Podcast: -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections
         
      Click to go to the Podcast on Remarkable Results Radio
    • By ASOG Podcast
      Free Diagnostic Time: Is It Worth It for Auto Repair Shops?
    • By Ruben Van Zenden
      Today, we simply cannot ignore social media, everyone is using it whether you are a fan or not. Personally, I think it has its negative and positive sides. 
      I have been looking at 100+ car repair shops and noticed that only a hand full are using social media marketing, for example, Facebook advertising. 
      Why are so few car repair shops making use of this, in my opinion, great opportunity to increase car count? 
    • By carmcapriotto
      How do you create an amazing customer experience in your business? Guess what? No one is born with those skills, but your employees are can turn talent into a skill with proper training. 
      Joe Marconi, Executive Council Member, Elite Worldwide. Auto Shop Owner. Joe’s Episodes HERE. @Joe Marconi
       
      Show Notes:   https://www.autoshopowner.com/
      It's never too early in business to prepare for the unexpected and your eventual exit. Life can throw you a curveball, and we have all heard the stories of a shop owner that had a life-changing illness or worse. As a shop owner, are you prepared for life's curve balls? And what about your family?  In addition, the primary responsibility of the business owner is to create an exit strategy.  It's not that you are selling tomorrow, but preparing for an exit strategy grows a successful business and is worth more. Curveballs and Exit strategies go hand in hand.  Build your business as a home; build it to sell in the future THA 316 surviving health scare Delivering an amazing customer experience is taught, not assumed Amazing customer service is lacking these days, and so is creating a world-class customer experience. By the way, customer service and customer experience are different. All too often, we blame the employees, especially younger people, for not having the people skills to create an amazing customer experience. Well, no one is born with those skills, and just like the skill of playing the piano or shooting a basketball, having the talent is one thing, but to hone that talent into a skill takes training.  What is great customer service? What does it look like? Do you have in-house training in place for everyone in the business?  Be prepared for customers- lower their anxiety. Get into the hearts and minds of the individual- personalize it, make notes Talent comes first, develop the skills comes second
      Thanks to our Partner, Dorman Products. Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. Take the Dorman Virtual Tour at www.DormanProducts.com/Tour
      Connect with the Podcast:
      -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections
      Check out today's partner:
       


      Click to go to the Podcast on Remarkable Results Radio
    • By ASOG Podcast
      It's Time To Break Up


  • Our Sponsors



×
×
  • Create New...