Customer questions labor hours charged

[CAautogroup]

Hello all,

 

We recently had a customer question the amount of hours charged to install a part. The customer insisted that we follow what the "book" calls for and nothing more. When we tried to explain to the customer that the book is not always 100% correct on labor hours. He then questioned our expertise in the field stating that he has a "bunch of amateurs working on his vehicle". Wow, really?

 

Its somewhat unpredictable if a bolt will break off, needs to be retread/retapped,or any additional parts that need to be replaced.

 

 

How would you handle a customer like this?

[xrac]

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[ncautoshop]

I show them repair pal and I'm typically in the middle. Then ask if he'd like me to charge book for installing light bulbs and doing his oil changes? Chances are he's just trying to see what he can get away with. We always give an estimate up front and contact the customer immediately if things appear to be going south. We explain that due to the corrosion or issues found additional time will be required and if they like we could show them the problem prior to making a call. Typically this reinforces that we're honest and won't be shaken by their complaints. We rarely hear anything else about it. If they come in and start out by saying things like "that's to high" or " how do you bill" my efforts with keeping the customer instantly stop. Just explain that we offer a service and warranty which is second to none, and politely explain that the price is the price. We also have a sign on the wall that disclaims that additional labor charges are possible and may be encountered and that they'll be advised prior to the additional charges.

 

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[Mario]

Don't quote in labor hours. Just quote a price. Quoting hours is a lose-lose. When I work up my quotes I always turn them on the hi-side of hours. That way in can absorb rust issues which happen on 80% of jobs in northeast ohio. It saves me from having to call the customer and adjust the estimate which they hate.

 

Example I did 3.1l gm headgaskrt job last week. I think book was around 12 hours I quoted 14. I had two broken exhaust studs. No big deal, already worked in the price before I even knew about it. No changing if estimate (which they all see as dishonest). Every party is happy.

[Joe Marconi]

Unfortunately, there are people, who only see price. So, the more value we put into the job the better. In order to avoid customers questioning labor and/or your overall price, you need to do a few things: Bring value to your services and repairs, know your key profile customers (the people that trust you and don't question you) and instead of selling parts and labor, sell you and your shop.

 

Let me explain. Outback sell steak...just a steak. So the price has to be cheap. Their brand caters to a particular segment of the population, or to consumers that are looking for a good meal at a reasonable price. Now, Morton's Steak House or a Ruth Chris Steak House, does not just sell steak. They sell customer service, fine dining, atmosphere and they sell the "experience." Their steaks are 4 to 6 times higher in price than at Outback. Is the steak at Morton's 6 times better than at Outback? Who knows. But the point is they can charge those prices because they have done a great job at removing price from the equation and replaced it with a lot of value.

 

The best shops and the most profitable understand this concept.

 

Don't sell just a water pump, if you do, you will be in trouble. You are not a Deli selling commodities like milk or eggs. If you were I would say price IS a concern. Bring value by telling the customer what they get, all the little extras you do, the warranty, the follow up inspection. Anything that positions yourself different from the Shop down the block. And find the Right Customers.

 

If we continue to go down the road Repair Pal wants us to, we are going to be in trouble. You cannot "cookie cutter" your services.

 

Sorry for being long-winded.

[flacvabeach]

We tend to spend way too much time on the oddball customer who wants to prove something or start a fight. Think about all the great customers you had last week that had confidence in you processes and abilities and believed in the value you are marketing. They came and went and they will tell people they got great service at your shop. I know we have to deal with the grouches with an axe to grind, but concentrate on the good guys who appreciate what you and your staff do.

[mmotley]

Hello all,

 

We recently had a customer question the amount of hours charged to install a part. The customer insisted that we follow what the "book" calls for and nothing more. When we tried to explain to the customer that the book is not always 100% correct on labor hours. He then questioned our expertise in the field stating that he has a "bunch of amateurs working on his vehicle". Wow, really?

 

Its somewhat unpredictable if a bolt will break off, needs to be retread/retapped,or any additional parts that need to be replaced.

 

 

How would you handle a customer like this?

Did you quote more than the book calls for? If so, why?

[mspecperformance]

We tend to spend way too much time on the oddball customer who wants to prove something or start a fight. Think about all the great customers you had last week that had confidence in you processes and abilities and believed in the value you are marketing. They came and went and they will tell people they got great service at your shop. I know we have to deal with the grouches with an axe to grind, but concentrate on the good guys who appreciate what you and your staff do.

 

These are the types that tend to ruin my day because I dwell on the negative (character flaw!). Thanks for this post!

[mspecperformance]

Did you quote more than the book calls for? If so, why?

 

I am not the OP however my opinion on this and from what I've learned from seasoned vets with great shops is that the original labor guide was built by by Henry Ford to stabilize his costs for warranty work. Labor guides are made for vehicles that are new with no rust, damage or modification issues. They do not account for broken bolts, worn out hardware, customer's stereo systems, choppy modified wiring harnesses etc etc. There are so many variations in labor guides as well. They are what they are, a GUIDE and not a standard every shop should be judged by. Your price quote also includes other factors such as your warranty. There is a reason why many shop management systems allow for labor matrix or some sort of modification to the labor guide percentages. Thats my 2c.

[xrac]

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[CAautogroup]

The customer simply questioned why we "finished the job too fast" compared to what we charged him.

[ncautoshop]

The customer simply questioned why we "finished the job too fast" compared to what we charged him.

Did your guys spend adequate time on a test drive verifying the repair? Unless you marked it up a few hours we typically consume most of the book time left in paperwork, verifying the repair and test drive.

 

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