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My manager took a few days off, so I decided to hang around the shop and waiting area, just to see if I could help in any way. I overhead a customer during write up say, “ The car is running great, I know I am do for services, but I’ll take my chances. If the engine blows, I rather replace the engine”.

 

We have all heard the foolishness that has come out the mouth of some people, but this statement particularly disturbed me. When asked how long he was keeping the car, he replied by saying at least another 12 years! 12 years and this guy does not want to maintain it? By the way, he drives a Toyota Matrix with 121,000 miles on the clock and he commutes to NYC each day, a round trip of nearly two hours.

 

I decided to work with the tech and advisor just to see how this progresses. Looking at his service history, he needed a 120k service, and the road test revealed a very bad brake vibration.

After we completed the multi point, I asked him to come into the shop to show him the brakes and discuss the 120k service. With his 4 year old son by his side, he said, “I’ll wait on that, just finish the oil change” I said, “Are you sure about that? You said you wanted another 12 years out of this car. You commute every day to the city, your brakes are not safe, you have young children, a wife and if something happens to the engine you rather replace it; an engine that will cost of 5,000 bucks; is that what you are telling me?”

 

He was silent for a few seconds and I was fearful I said the wrong things. He replied, “Well, when you put it like that, I guess I need to listen to you”.

 

We went ahead with the services, and the brakes, and I explained to him that while no one can predict the future, the only way to insure that you will decrease the odds of a major failure is through preventive maintenance.

 

I am not suggesting that my approach was the best, in terms of speaking to people. I have known this customer since he was in grade school and perhaps I got away with more than most can.

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Joe, good call there!

 

Since you seem to have known the customer I think you definitely had more leeway in what you could say. If he was a newish customer or a customer you don't know very well it may have rubbed him the wrong way especially if he is just one of those cheapies who thinks anyone trying to sell him something is trying to rip him off.

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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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