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Posted

We often take a customer’s car to the dealer when we discover the vehicle is under warranty. We prefer to take it ourselves, because the dealers are like vultures and too often my customers come back with a ton of service work done, much of which we already performed! Plus, it's no secret that the dealer wants my customer.

 

Yesterday I took a Subaru with a warranty reprogramming recall back to the dealer and as I pulled into the service drive, there was a big sign that stated: We’ve Lowered our prices! Under the headline listed these services:

  • Oil change service $19.95
  • Wheel Alignment $59.95
  • Tire rotation $9.95

These prices for my area are cheap. In fact, the average wheel alignment in my area is $89 to $129.

 

This is more proof that the dealers are trying everything they can to increase business in their service bays. My hope is that they price themselves out of business.

 

Now, will many shops lower their prices to match the dealer? I hope not. If the dealer wants to position their brand on price, let them. Do not enter in that "race to the bottom."

 

Remember, think of your best customers. You know, those people that never question price and throw the keys on the counter and say, "Call me when the car is done". These are the customers that you need to base your business on. These are also the customers that rarely question price.

 

I know that the last few years have been tough on everyone, but we still need to maintain who we are as a brand. Do the things that have made you a success.

 

And remember, your best customers don't continue to go to for your price. Recognize WHY they are loyal and build your business around that.

 

 



Posted

True story duplicated many times since 1969 . A person comes in and grills me about prices on the first visit so sometimes I play along. How much for a wheel alignment they ask $29.00 I respond. How much for a conventional oil change they ask, $9.99 I respond . They can't believe what they just heard, I ask them if they have been paying more elsewhere? :rolleyes:

Posted

I agree that you should not enter a price war but sometimes it is difficult for a business owner to lose business because you are "higher" priced than the dealer or a competitive independent repair shop. I do also agree that you have to show value and offer something that other shops do not offer that sets your business apart from other repair shops. This is key when pricing becomes an issue with customers.

Posted

We often take a customer’s car to the dealer when we discover the vehicle is under warranty. We prefer to take it ourselves, because the dealers are like vultures and too often my customers come back with a ton of service work done, much of which we already performed! Plus, it's no secret that the dealer wants my customer.

 

Yesterday I took a Subaru with a warranty reprogramming recall back to the dealer and as I pulled into the service drive, there was a big sign that stated: We’ve Lowered our prices! Under the headline listed these services:

  • Oil change service $19.95
  • Wheel Alignment $59.95
  • Tire rotation $9.95

These prices for my area are cheap. In fact, the average wheel alignment in my area is $89 to $129.

 

This is more proof that the dealers are trying everything they can to increase business in their service bays. My hope is that they price themselves out of business.

 

Now, will many shops lower their prices to match the dealer? I hope not. If the dealer wants to position their brand on price, let them. Do not enter in that "race to the bottom."

 

Remember, think of your best customers. You know, those people that never question price and throw the keys on the counter and say, "Call me when the car is done". These are the customers that you need to base your business on. These are also the customers that rarely question price.

 

I know that the last few years have been tough on everyone, but we still need to maintain who we are as a brand. Do the things that have made you a success.

 

And remember, your best customers don't continue to go to for your price. Recognize WHY they are loyal and build your business around that.

 

 

Thank you Joe & not surprising that dealer uses three most used "catchall" to bring the customer in.

I suspect we all know they will never make any money at these prices, nor will we. Nor, I am afraid, they will price themselves out of business because they will "upsell" a jibijibies (technical term) out all and any customer as soon as he comes in for $9.99. They also, unlike most of us, have multiple streams of income. So, even if they loose the service income for a few month, that I doubt they will, bust still, they have the used cars to "keep them afloat".

I also suspect that many shops will end up lowering their prices because people see something like that and in panic, the first "logical" thing that comes to mind is "Oh (*&%*&% I've got to follow the lead"

I'd be willing to put up a little comparison chart on my website (when I have one :wacko: ) to run a comparison what will it cost the customer "on the bottom line" after a simple repair (in addition to any one of those services) and compare the value they will get from me compare to the dealer.

Value selling is not easy, that's why they call it selling and not "giving away" services....

  • Like 1
Posted

I will never lower a price to match a dealer price. My techs are more skilled, my warranties are better and my customer service isn't even on the same planet at the "dealer."

  • Like 1

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  • Have you checked out Joe's Latest Blog?

         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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