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Per Axle Pricing - Brakes


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I would like to increase take rates in brake work at my shop. I've done coupon ads, both percentage-off and dollars-off and my service writers are also allowed to offer discretionary discounts at the podium if it makes the sale. However, this isnt moving the needle much.

 

I have been advised to try price point advertising aka per axle pricing to simplify the service review process. Now, to be clear, I have no intention of throwing out the $99 per axle offer with the small print disclaimer of "most vehicles" or "additonal parts not included". Im not sure what the number is, but certainly it would be a two, maybe three tiered offer, passenger and heavy duty and specialty (euros etc.). Of course there would be some obvious exclusions which would have to be carefully managed.

 

Has anyone moved from parts and labor pricing to per axle pricing succesfully?

 

Thanks!

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When people call and ask how much for a brake job, the answer is always "bring it in for a free estimate". We tried to package price brake jobs and it brought in too many price shoppers. However, if we do an oil change and notice the rotors are rusted we suggest a future appt. for brake work. They ask " how much " and I tell them it's normally around $250 per axle, (pretty close to the average in my area) that way they know what to budget for. I assume we can put pads & rotors on most cars and rebuild the calipers for about that so it seems to work. Recently we flat out refuse to do pad slaps, it costs us too much time explaining the fact of cheap = cheap.

Edited by alfredauto
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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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