Quantcast
Jump to content









Customer Supplied Parts


Recommended Posts

Will you install parts for a customer that supplies the parts? If you do, do you mark up your labor to compensate for the lost revenue from parts? If you do mark up your labor, how much do you mark it up? We currently just charge the labor and do not mark it up at all but I would like to eventually get rid of these types of customers by marking up labor but I don't know exactly how much to mark it up.

Link to comment
Share on other sites

xrac, do you just flat out deny customers that ask to have their parts installed? Do you feel like you are losing out on revenue from these customers or do you feel as though this is the type of customer you don't want anyways? Its tough because you don't want to lose out on any business but at the same time you want to have a complete sale for each customer.

Link to comment
Share on other sites

What we see happening here at our facility is vehicle is diagnosed by our tech either through an oil change or the customer coming in for a diagnostic. The customer does not have the vehicle repaired that day of the oil change or diagnostic and leaves with an estimate. Then on a later date, the customer tries to bring the part that we have recommended by purchasing it at a local parts store or online. We do try and push the warranty aspect of it but for some people, they can only think of right now and not in the future. As I said earlier, we currently charge the same labor as if we were purchasing the parts but I'm seriously thinking about changing that and increasing the labor rate. Is 25% the amount of labor increase you guys typically increase?

Link to comment
Share on other sites

I like many of the other posters with rare exception just do not allow this, I have tried in the past and it rarely went smooth, customers would complain about increased labor, wrong parts would come in, and with the vehicle apart a bay now is tied up. Even when explained and written on the invoice if there is a failure you will likely have an argument on your hands as this type of customer does not want to spend to begin with. At least for me this is not my target customer, they are usually looking for the lowest price. If is a specialty type part that I don't want to sell and it looks like I can make money, then I will, other then that thanks, but no thanks!

Link to comment
Share on other sites

With rare exception, we do not install customer supplied parts. During the recession we saw an increase in people coming to us with their own parts and we tried to accommodate them, charged more labor, but in the end it turned ugly, for the most part.

 

I can remember one guy insisted that we do not diagnose the car and install his mass air sensor, which he read on the internet and was confirmed by the parts store that pulled a mass air code. After the part did not solve his problem it tuned into an argument that WE should have known better.

 

We do make exceptions. The other day a customer came to us with a front differential that he thought he could do himself. He was real nice and did not give us a hard time. In fact, he was embarrassed that he brought us the part. We did the job and it turned out nice.

 

The bottom line, we make money on labor and parts. Take away the part profit, take away too much of what we need to survive.

Hey Joe, in reference to the gentleman that needed the MAF. We have a saying here at our shop "Of course it didn't work. We fixed what you told us to fix."

 

We too make some rare exceptions. For the most part the answer on the phone is "I'm sorry but, we don't install customers own parts." When we do, the labor up charge is 1.5 times the labor rate and we do state on the invoice that we used the customer supplied parts. We also say NO WARRANTY. However, we also know that the law is on the customers side with the warranty issue. But, the customer doesn't have to know that.

Link to comment
Share on other sites

I do not install customer parts except for the VERY rare occurrence. I have only had a handful of people really inquire as to why we will not do this. Pretty simple to me, you don't take your own food to a restaurant. Everyone has pretty much hit the nail on the head as to why we shouldn't do it. We are the professionals, we know what brands work and what one's don't. Keep in mind, we are liable even if they sign a piece of paper stating NO WARRANTY. Law is on their side.

Link to comment
Share on other sites

Just had a terrible experience. Installed a downpipe for a 335i a few weeks ago for a guy. He initially called in and told us he had an downpipe to install. No problem seemed pretty straight forward. Customer comes in, turns out to be a used downpipe and no exhaust gaskets. Explained to customer that he might have issues since he needed new gaskets said ok no problem.

 

Fast forward to today, guy comes in complaining of an exhaust noise. Explained to him that we are more than happy to drop his exhaust and examine the entirety of the exhaust however if there is nothing apparently wrong with our work then we would have to charge him again. Customer agree, we drop everything, nothing wrong. All of a sudden customer has a problem paying trying to cite all kinds of crap out of the wood work. He even said we never had to drop the exhaust to install his downpipes as per a video he saw. Don't know where these people come up with this stuff. Do they genuinely believe their BS or are they trying to get over? Either way is scary. Guy is a bottom feeder customer, I was contemplating on letting him off the leash without paying but then I'd feel like a real idiot for doing free work. On the other hand, this customer could turn around and give a negative review out of fabricated stories. These type of people I really wish the worst for, we would all be better off with them gone off the earth.

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?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
  • Similar Topics

    • By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By nptrb

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By Changing The Industry
      Episode 161 - Realities of Coaching in the Auto Industry & Customer Misconceptions with Matt Wagg
    • By carmcapriotto
      The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
      Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
      Check out their podcast here: https://autorepairmarketing.captivate.fm/
      If you would like to join their private Facebook group go here: https://www.facebook.com/groups/autorepairmarketingmastermind
      In this podcast episode, Chris Cotton, an auto repair business coach, talks with Mark, owner of an independent European auto repair shop in Rochester, New York, that also does sales and bodywork. They discuss Mark's family history, including his father's move from Germany to the U.S. and his transition from diamond cutting to car sales. Mark recounts his own path in the family business, from washing cars to his current role, and the lessons learned along the way. They also delve into succession planning, with Mark's son Hunter potentially taking over in the future. Mark highlights the benefits of working with Chris implementation of a new service management system, and the positive changes in business performance and staff engagement. The episode touches on the importance of regular staff meetings, understanding daily business metrics, and the joy of family involvement in the business. It concludes with personal anecdotes about family meals and the cultural heritage that enriches their lives.
       
      The background of Mark's family (00:00:05) Mark talks about his father's journey from Germany to the United States and their family background. Mark's family's journey in the auto repair business (00:02:05) Mark shares the story of his family's involvement in the auto repair business, including their transition from sales to service. Mark's father's journey in the auto industry (00:04:08) Mark details his father's experiences in the car industry, from working at a BMW dealership to starting his own car sales business. Mark's connection to European cars (00:10:52) Mark discusses his family's deep connection to European cars, particularly Audi, BMW, Mercedes, and Volkswagen. Mark's journey in the auto repair business (00:14:48) Mark reflects on his journey in the auto repair business, from washing cars to becoming a service advisor and learning to buy cars at auctions. Car Sales and Sunroof Surprise (00:19:22) Mark recalls a car sales experience and his father's tough love and succession plan. Auto Auction and Nostalgia (00:21:29) Chris shares his experience working at an auto auction, and both speakers reminisce about the excitement of auctions. Transition and Succession Plan (00:23:16) Mark discusses his role in the business and the prolonged transition plan from his father. Family Involvement and Future Plans (00:25:43) Mark talks about family members' roles in the business and his son's potential as a service manager. Succession Planning and Family Dynamics (00:29:31) Mark emphasizes the importance of communication and close relationships in succession planning. Future of the Business and Retirement (00:34:14) Mark discusses his long-term plans for the business and his reluctance to fully retire. Family Living Arrangements (00:36:40) Mark shares that his mother still lives in the family home, and he and his wife live next door. Each timestamp is followed by a short description of the topics covered in the corresponding segment of the podcast episode. Family and Business History (00:37:29) Discussion about family's daily routine and plans for creating a slideshow of old pictures for the website. Transition to New Location and Succession Plan (00:38:19) Mark mentions the upcoming 40th anniversary at the new location and transitions to discussing their decision to change service management systems. Transition to Auto Leap Service Management System (00:39:13) Mark's decision to switch to Auto Leap, initial challenges, and his encounter with Chris Cotton's podcast. Initial Meeting and Decision to Work with Chris (00:43:40) Mark's initial meeting with Chris at a convention, initial reluctance to work with a coach, and the decision to start working with Chris. Impact of Coaching on Business (00:45:48) Positive impact of coaching on business performance, particularly in December and January, and how it has improved their outlook for the year. Benefits of Coaching and 20 Groups (00:50:40) Discussion about the value of coaching, 20 groups, and the supportive industry landscape in Rochester. Shop Renovation and Growth (00:54:30) Description of the shop's renovation and growth, including the increase in employees and the focus on cleanliness. Future Plans and Idea Sharing (00:55:20) The anticipation of a productive year with many ideas yet to be explored and nurtured during the coaching sessions. Accountability and Responsibility (00:55:34) Discussion on the importance of accountability and responsibility in business ownership. Meetings and Regimen (00:56:37) The significance of regular meetings and a structured approach to managing the business. Future Plans and Succession (00:58:36) Mark's future plans for the business, including the involvement of his son and the transition of responsibilities. Family Traditions and Gratitude (00:59:22) Mark's family traditions, including meals prepared by his mother, and expressions of gratitude. Closing Remarks and Sponsorship (01:01:00) The conclusion of the episode, including acknowledgments and sponsorship mentions.  
       
       
      Connect with Chris:
      [email protected]
      Phone: 940.400.1008
      www.autoshopcoaching.com
      Facebook: https://www.facebook.com/
      AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
       
      #autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix #shopmarketingpros #autofixautoshopcoachingbook #riseandgrind
      Click to go to the Podcast on Remarkable Results Radio


  • Our Sponsors










×
×
  • Create New...