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Interesting Discussion I had with another shop


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A friend of mine that works at a very successful shop cross town explained to me how he charges and I want to see what everyone's opinion on this matter is...

 

Say a customer comes in and needs front brakes and rotors as well as front wheel bearings.

 

Say Front wheel bearing labor only is 2.0 hours

 

Say Front brake job labor only is 1.5 hours

 

 

The job entails you to remove the brake pads and rotors ANYWAY. The only additional work you need to perform is to grease the slide pins and compress the caliper piston.

 

Do you ...

 

A) Charge the customer as 2 separate jobs and 2 separate lines (3.5 hours total)

 

B) Add a smaller charge to the job due to the slight increase in work (2.0 hours + however much extra)

 

C) Do you replace the brakes as a courtesy because it is requiring not much extra labor.

 

 

Thought, opinions and explanation as to why you chose one or the other.

 

 

 

 

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That's what we used to call "overlapping" labor. At a shop I used to work at we would in some cases add a discount line on the invoice that read something like....Package Job Labor Discount - 1 hr. Something like that to give the customer a perceived value for doing both jobs at once.

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As the name implies it's a "Labor Guide" Anytime there is an overlapping repair use your own judgement and your professionalism to guide you. Labor is money, but customers are our bread and butter.

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That's what we used to call "overlapping" labor. At a shop I used to work at we would in some cases add a discount line on the invoice that read something like....Package Job Labor Discount - 1 hr. Something like that to give the customer a perceived value for doing both jobs at once.

 

however you do it, do it this way. billing more and offering a credit or discount helps the customer to perceive they are getting a deal. if you give them a deal and don't tell them explicitly they don't feel like they got as much value.

 

as for the question at hand we will offer discounts for overlapping work

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  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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