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When Should You Ask for the Sale


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Very interesting article. I personally haven't found that to be true. I typically have a lengthy conversation with my customers to explain the recommended services and also break it down for them. A new car costs you $xxxxx.xx where as this vehicle is perfectly fine just with age needs some items maintained/replaced and will continue to provide you years of service. If you really break down the costs, most of the time it really doesn't make sense to buy a new car. Seems like many people use it as an excuse to buy a new car/ get something different. I just think most people don't properly understand the need to maintain a vehicle instead of fixing a broken one. All comes down to education and that's part of our job too.

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  • 4 weeks later...

I attended a Jasper class where we learned the economics of replacing major components. It was a good seminar, we all learned something. Sure, $5000 for a new engine is cheaper than $30,000 + tax + fees for a new car, but who wants to put $5000 into a car with 200k miles? The engine might be good but the rest of the car is still rusted and worn out and will take a car payment a month worth of repairs to stay on the road. I let the customer decide but I have no problem suggesting they scrap their junker. On the other hand if their car is still good and they maintained it well a new engine or tranny is a great choice. Jasper would love for us to repower every vehicle on the road. Personally I keep cars until the airbags deploy.

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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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