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comparing with other shops.


adamf

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I see some shops are comparing their shops with others in their area, How do you go about this? Anonymous phone calls? Or do you have this close of a relationship. Appreciate all the help.

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You could try the anonymous route if you are looking to get information on their labor rate. One thing to consider is why compare? Set your goals and your pricing structure based on what sort of numbers you want to achieve after careful market consideration. I would explore the information on here and iatn as well as the articles written by Joe and others on here and ratchet and wrench. Here are a couple of articles for thought on how to become profitable :

 

http://www.motor.com/article.asp?article_ID=1880

 

http://www.autoinc.org/archives/2013/aug2013/manage.html

 

 

http://www.autosphere.ca/carcarebusiness/category/greenwoods-blog/

 

You can't discount your way to prosperity, not suggesting you are, but this is perhaps the best article on the subject of discounting:

 

http://www.searchautoparts.com/aftermarket-business/training/thinking-dollars-not-percentages

 

These two are pretty good as well

http://www.searchautoparts.com/motorage/financial/crunching-numbers?cid=95883

 

http://www.searchautoparts.com/motorage/financial/more-making-informed-clients

Edited by Sean
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We actually do it to make sure we aren't charging to little. Many times we put a quote together based on our labor rate and parts matrix then find out we are still undercharging.

 

I don't think there is anything wrong know what your competition charges. Being in sales it's very effective to well aware.

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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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