Quantcast
Jump to content

Estimating the unknown


Recommended Posts

Had a lady come in wanting a tune up on an 06 Expedition. I explain that it books at 3 hrs.and plugs are x amount. This would be The minimum charge "IF" everything went correctly. I went on to explain The notorious spark plug problems and that this "could" drastically change the price. I tried to explain that they could break at the shell, or the porcelain which takes longer. And there was no way to estimate "IF" or how many plugs would break. She says she was expecting it to be under $200 and she could not afford us. I tell her that any shop that can do it for under $200 has know idea what they are getting into. I tried to get her to explain what problems she is having and that she may not need plugs. Instead she ran out the door so fast I thought she was going to break a high heel.

 

So where did I go wrong? I had a customer in the shop willing to spend money but had no idea of what could happen. Trying to be up front scared her off before we had a chance to earn a repeat business customer.

Even though my wife was here, I feel she thought we were trying to take advantage of a female. Was there a better way to handle this?

 

Link to comment
Share on other sites

Take what I am saying with a grain of salt since it is just a regurgitation of what i have learned but it has worked for me. You never want to give customers a break down of parts and labor and especially not quote labor times. What you have to do is talk to them about the value of the service, what you will be providing them, your warranty, your training and certs and and the end of all that once u have built a value based service in their mind then you give them the cost at the end. Use softening words like, "Your investment for a professional maintenance service will be XXX." If you talk about price right off the bat without building value into your service, all customers are going to do is think "price price price."

 

In regards to the spark plug issue I would mention that because you have extensive experience with this engine (make it sound like you are an expert with this engine) there is a possibility you may have to perform additional work. Assure the customer you will do your very best to avoid incurring extra costs during the procedure however you are full equipped and capable of handling the proper repair. Maybe this would be a great time to mention your warranty and that you full guarantee the repair once it is made.

  • Like 1
Link to comment
Share on other sites

The thing is , She was referred to us by 2 other small shops that refused to touch it. But No one was doing anything without an exact dollar amount. That I could not give her. Maybe I should just be glad she left, But I do not like the circumstances she left under.

Link to comment
Share on other sites

The 2 other shops refused to do the work because it couldn't be done for $200. You explained to her the problem of what could occur in the replacement of spark plugs on a Ford. Letting her know up front that there could be addittional cost. She is shopping and you did nothing wrong , you gave her the correct information.

Link to comment
Share on other sites

My top dog tech is a lover of Ford engines and a master at doing these tuneups. We price them at the cost of the plugs with our standard markup plus book labor which will be somewhere between $450-$475. Any broken plugs are an extra $50 with a maximum of 4 or $200. So far he is batting 100% on doing these tuneups and successfully extracting any broken plugs. Of course if we couldn't remove a broken plug then a head job would be priced and sold.

Question about that.... We have had great luck with these as well and are currently pricing them the same way about $450 with parts plus $50 for each that needs to be extracted. How would you go about telling a customer that a head job would be required after extraction failed? We have not had this happen, and all customers are warned of the problems with these spark plugs breaking. It just seems difficult that we sell the job saying that we can extract them then when it fails we have to go back and sell them a considerably more expensive job. How do you break the news to them without turning up on a milk carton?

Link to comment
Share on other sites

Question about that.... We have had great luck with these as well and are currently pricing them the same way about $450 with parts plus $50 for each that needs to be extracted. How would you go about telling a customer that a head job would be required after extraction failed? We have not had this happen, and all customers are warned of the problems with these spark plugs breaking. It just seems difficult that we sell the job saying that we can extract them then when it fails we have to go back and sell them a considerably more expensive job. How do you break the news to them without turning up on a milk carton?

Exactly my point. How do you go from a $450 repair to a $1400 repair and make the customer understand. In their mind you are so incompetent that you can't change spark plugs without messing up their perfectly running truck.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • 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.
  • Upcoming Events

    • March 24, 2023 01:00 PM Until 09:00 PM
      0  
      Hi all,
      AutoLeap is hosting Amplify 2023, a virtual auto repair conference for shop owners, on March 24. We have 22 incredible speakers, and 13 industry associations and training institutes participating in this virtual event. The conference is free of cost.
      You can book your complimentary, virtual seat today using this link: https://bit.ly/3EXvfWY
      Amplify 2023 speakers include: Joe Marconi, Co-Owner AutoShopOwner and Elite Business Coach @Joe Marconi Aaron Stokes, ShopFix Academy Cecil Bullard, The Institute for Automotive Business Excellence Chris Cotton, AutoFix Auto Shop Coaching Darrin Barney, Elite “G” Jerry Truglia, Automotive Technician Training Services Greg Bunch, Transformers Institute Jeremy O'Neal, AdvisorFix The conference will cover essential topics such as:
      Navigating through the current industry challenges Tackling the technician shortage through employee retention Creating memorable customer experiences Growing & expanding your business in 2023 Financial planning & KPIs to measure And that’s not all.
      The interactive, dynamic conference also offers live networking opportunities, and fun games and prizes.
      You can book your complimentary, virtual seat today using this link: https://bit.ly/3EXvfWY
      #AutoLeapAmplify23
  • Similar Topics

    • By DUFRESNES

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By Joe Marconi
      For all the veteran shop owners who have been around the block a few times, and have experienced the roller-coasted rides of being an auto repair shop owner, what advice could you give those shop owners just starting out or planning to go into their own business? 

    • By Joe Marconi
      I recently read an article in Auto Success online, a publication for dealerships. It states that there is a market for used tires. I was never a fan of selling used tires. Link to article below. 
      Your thoughts? Comments? 
       
       
    • By Joe Marconi
      Years ago, I had a "No rehire rule." My thinking back then: If someone quits and I rehire them, does that send the right message to the other employees? That they can leave and I would take them back?  However, we are in different times.
      Employees, especially techs, have left their jobs in recent years, lured away by better pay, in many cases. But, these employees soon realized that a job (a career) is not all about the paycheck. 
      What would you do if an employee came back to you, asking for re-employment? 
       
       
       
    • By Joe Marconi
      I will never forget the day when a customer, who didn't like the price, took cash out of his pocket, crumbled up the cash, and threw the money at me. 
      This customer clearly crossed the line, in my opinion. 
      Before I tell the rest of this "true" story, I would like to hear from you: How would you have handled this situation? 
       



  • By nptrb, in Automotive Industry,

    By nptrb, in Automotive Industry,

    By nptrb, in Automotive Industry,

  • Our Sponsors



×
×
  • Create New...