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comparing with other shops.

adamf

By adamf
in Dealing With Competition

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adamf Rookie

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.

mccannable Collaborator

mccannable

Posted
Posted

We have been doing this because we are new. Just anonymous calls. I have had a hard time getting shops to even pick up the phones. Don't have any relations with shops other than a few specialty we work with.

Sean Enthusiast

Sean

Posted
Posted (edited)

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
mccannable Collaborator

mccannable

Posted
Posted

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?

    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
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         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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