Quantcast
Jump to content

Recommended Posts

Posted

How do you price your oil changes? I've been using my matrix for the filter and oil, and not charging labor which leaves us near the local menu prices. Thinking of using a menu which would eliminate some time required during the write up, and allow us to quote the price over the phone faster.

 

Sent from my SCH-I605 using Tapatalk

 

 

Posted

Stop focusing on what everyone else is charging and focusing on making money. You need to get in the mindset that you are selling a service and value. When you make it about price, it's a race to the bottom or better yet attracts bottom feeders.

 

Cars nowadays don't break down as much. So opposed to offering an oil change @$30 , offer a full inspection ( on every freaking car that comes in )' oil change service, air up rotate tires, check brakes and lights. Then chage $49.99. Your selling the customer perceived value. If you want the cheapest LOF, donor come here. If you want your car fully inspected by a trained profession And not a high school kid, and made sure it's safe to drive your family in come here. You want the best possible oil and filter, come here.

 

Set your business apart. Not charging labor or even losing money on LOFs is ridiculous!

 

I rarely have people call me up and ask how much is an oil change? People come to me becusase of our reputation, customer service ( which should set you apart from everyone else) , and referrals. 90% of my phone calls are people asking to schedule an appointment! price is never brought up.

 

If you are starting out, I understand the thought of " hey I got to get people in the door", but it attracts bottom feeders who won't become your A clients.

 

Take it one step further and just charge what the suggested service from the OEM calls for. Labor is covered, your marketing as competing with the dealer, and your doing what's best for the customer and their vehicle.

 

Fwiw, my lowest price LOF is $55 which includes castrol gtx, Nippon filter, and inspection. My average LOF is $66-90 being I sell way mor synthetic LOFs and high mileage LOFs.. Better for the car/customer, has brand recognition, and I have /attract customers looking for quality now.

 

Sorry for the long post, I just feel bad seeing everyone so worried about being the best priced and no focusing on selling the value of what your selling. It's a fast ride to the poor house.

  • Like 1
Posted

We are not looking to be the cheapest, and we're definitely not the cheapest. We are a touch below the dealer for basic repairs and tires, otherwise only one shop in town is higher in pricing. The problem is my matrix would have me charging $90 for a conventional oil change (we sell oil by the quart which sticks it on the high end of the matrix), in turn each oil change the oil has to manually be re-priced or we don't charge labor and sell expensive oil. I was looking to install a menu board to increase sales on services customers may forget or not realize we offer. I could care less if we're cheaper but in the same respect I can't be charging $50.00 for a conventional oil change with 4 quarts, I'm not looking to overcharge but fairly charge. I'm also flirting with the idea of putting a charged inspection on the board as well. Again, the interest is not to be cheaper - it's to offer customers a menu and reduce manual pricing.

I'm thinking $49.95 for a oil change up to 5qts (leaving us at 60% gpm) and charging an additional $5.00 per qt and something for more expensive filters. Diesel oil changes I might do $129.00 to $160.00. Haven't done the math there yet.

 

Sent from my SCH-I605 using Tapatalk

 

 

Posted

Your exactly right Joe! I'm working in the value added direction now but taking things slow. In the past I've been known to over think things like maintenance packages and price lol. I like the fact your seasonal maintenance package is very simple without tons of additional services. What type additives do you provide in that type of service? We considered trying to step back up and sell more BG services it's always been a hard sell in these parts.

 

Sent from my SCH-I605 using Tapatalk

 

 

  • Like 1
Posted

Each customer and each car get a different price. The Mileage based visual inspection and oil change service starts at $xx.xx and we will advise you of any other service needs or costs as they are revealed. Would you like a free hand wash with that service? You may wait in our waiting area or we can give you a ride. Yes we will pick you back up.

 

You must train your customers to be type a customers. The others will go to lowest price.

Do a random act of kindness to all so that they will give you REFERRALS!

 

I have given Free oil changes to customers in order to save them from having their car butchered by the lube in the box and they have sent me referrals worth thousands of dollars!

Posted

I have a client (the word, client, denotes a relationship that is hopefully long-lasting) who first came in as a prospect in March, 2009. She had a mailer coupon for an oil change w/ rotation for $22.95, and asked if she was at the right place. I told her that she certainly was and welcomed her to the shop. It was a Saturday morning around 8:30. ( I just remember stuff like this!) Since she seemed antsy and apprehensive, we performed the job with no add-ons suggested. The car is a Hyundai Santa Fe. The next month she came in on a Saturday morning and said she had a roaring noise in the back. We replaced both rear wheel bearings that day. She was becoming a "client instead of a customer. This afternoon (Sunday) I went to the shop to check on things, and her car was in the parking lot for service tomorrow.

 

Long story short, she has come in time and time again for all her oil change services, tires, and other needed AND recommended services on her car. This is the proper outcome of a "Get 'em in the door" low-priced oil change. I feel it works more times than not. Also about a month ago we turned a $22.95 oil change and rotation into a $660 invoice by my salesman recommending a 60,000 mile service while the customer was checking in. Hopefully he will also become a client!!

 

Remember......"Not Shown and Not Told Means Not Sold!!"

Posted

I have a client (the word, client, denotes a relationship that is hopefully long-lasting) who first came in as a prospect in March, 2009. She had a mailer coupon for an oil change w/ rotation for $22.95, and asked if she was at the right place. I told her that she certainly was and welcomed her to the shop. It was a Saturday morning around 8:30. ( I just remember stuff like this!) Since she seemed antsy and apprehensive, we performed the job with no add-ons suggested. The car is a Hyundai Santa Fe. The next month she came in on a Saturday morning and said she had a roaring noise in the back. We replaced both rear wheel bearings that day. She was becoming a "client instead of a customer. This afternoon (Sunday) I went to the shop to check on things, and her car was in the parking lot for service tomorrow.

 

Long story short, she has come in time and time again for all her oil change services, tires, and other needed AND recommended services on her car. This is the proper outcome of a "Get 'em in the door" low-priced oil change. I feel it works more times than not. Also about a month ago we turned a $22.95 oil change and rotation into a $660 invoice by my salesman recommending a 60,000 mile service while the customer was checking in. Hopefully he will also become a client!!

 

Remember......"Not Shown and Not Told Means Not Sold!!"

Great

Did the roaring noise start after the tire rotation you did? I like to road test all cars after rotating tires due to chopped tires causing noise, tire pull etc. Note finings on invoice.

I also check for tsb's. We had a Sante Fe customer come in for a cheap oil change that was low on oil at check in and I found a tsb about noise on start up. When I told the customer about it he stated that he had been hearing noise on start up and the oil level was low since the Lube in a box did his change last. We got him a oem oil filter and proper oil level-His noise went away.

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
  • Available Subscriptions

  • Have you checked out Joe's Latest Blog?

         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.
  • Similar Topics

    • By TradeHop
      Hey all — long-time lurker, first post. I'm building something called TradeHop and want to sanity-check the idea with people who actually run shops before I go further.
       
      The concept: traveling or independent mechanics book your spare bay time by the day instead of you hiring them full-time. You set the price and hours, they book, and you keep the bay filled on slow days instead of empty.
       
      Before I build more, I'm curious: would any of you actually consider doing this, and what would make you say no? Not trying to sell anything here, genuinely want the reality check from people who run shops for a living.
    • By carmcapriotto
      Thanks to our Partners, NAPA TRACS, Today's Class, KUKUI, and Pit Crew Loyalty Watch Full Video Episode Your posted labor rate may not be the labor rate you're actually collecting, and that gap could be costing your shop thousands of dollars every month.
      In this episode, Carm Capriotto is joined by Andy Adams, a shop owner and business coach, and Rob Sperring, a service manager, to explain why the Effective Labor Rate (ELR) is one of the most overlooked yet impactful performance metrics in the auto repair industry. They break down why ELR falls short, how it affects profitability, and the practical steps every shop owner can take to close the gap.
      What You'll Learn What Effective Labor Rate (ELR) is and why it matters more than your posted door rate. Why healthy shops should collect at least 90 percent of their posted labor rate. How unbilled diagnostic time, underpriced canned jobs, and complimentary inspections reduce profitability. Why excessive discounting, even with good intentions, can quietly erode your bottom line. How shifting consumer buying habits make labor profitability more important than ever. Why improving ELR creates opportunities to increase technician compensation and strengthen your business. How auditing repair orders can uncover missed labor opportunities and unnecessary discounts. Why updating your labor matrix and canned jobs can immediately improve financial performance. How sharing KPI's (key performance indicators) with your team builds ownership and accountability throughout the shop.
      Effective Labor Rate is more than a financial matrix; it's a direct measure of how well your shop captures the value of the work it performs. By understanding where labor revenue is being lost and making intentional operational improvements, shop owners can increase profitability, invest in their teams, and build a stronger, more sustainable business. Rob Sperring, Grand Rapids Motorcar, Grand Rapids, MI Andy Adams, Adams Garage, Terre Haute, IN. Coach at Repair Shop of Tomorrow Thanks to our Partner, NAPA TRACS NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Thanks to our Partner, Today's Class Optimize training with Today's Class: In just 5 minutes daily, boost knowledge retention and improve team performance. Find Today's Class on the web at https://www.todaysclass.com/ Thanks to our Partner, KUKUI Stop juggling multiple marketing tools. KUKUI’s integrated platform delivers 4x better website conversions, automated follow-up, and real-time ROI tracking. Get industry-leading customer support with KUKUI at https://www.kukui.com/ Thanks to our Partner, Pit Crew Loyalty You’re probably tired of chasing new customers who never return. We understand. Pit Crew Loyalty ends the one-and-done cycle, turning first visits into lasting, reliable revenue at https://www.pitcrewloyalty.com/ Connect with the Podcast: Visit the Website:https://remarkableresults.biz/ Subscribe on YouTube:https://www.youtube.com/carmcapriotto Follow on Facebook:https://www.facebook.com/RemarkableResultsRadioPodcast/ Follow on LinkedIn:https://www.linkedin.com/in/carmcapriotto/ Follow on Instagram:https://www.instagram.com/remarkableresultsradiopodcast/ Join Our Virtual Toastmasters Club:https://remarkableresults.biz/toastmasters Join Our Private Facebook Community:https://www.facebook.com/groups/1734687266778976 Join our Insider List:https://remarkableresults.biz/insider All books mentioned on our podcasts:https://remarkableresults.biz/books Our Classroom page for personal or team learning:https://remarkableresults.biz/classroom Buy Me a Coffee:https://www.buymeacoffee.com/carm Special episode collections:https://remarkableresults.biz/collections
      The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/ Remarkable Results Radio Podcast with Carm Capriotto: Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/ Diagnosing the Aftermarket A to Z: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/ Business by the Numbers: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/ The Auto Repair Marketing Podcast: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/ The Weekly Blitz: Weekly Inspiration with Business Coach Chris Cotton from AutoFix – Auto Shop Coaching. https://chriscotton.captivate.fm/ Speak Up! Effective Communication: Develop Interpersonal and Professional Communication Skills with Craig O’Neill. https://craigoneill.captivate.fm
          Click to go to the Podcast on Remarkable Results Radio
    • By Art Szabo
      I would like to get some static cling personalised oil change stickers from a reliable vendor. I did a search on the web and the amount of suppliers is overwhelming. We have a full color logo and shop information we would like to have on the sticker. The only thing I could find was fifty cents each. Any help would be greatly appreciated.
      Thanks,
      Art Szabo
    • By Bruno Tabbi
      Hello Everyone,
      New member here. 
      I wanted to pose a question to the forum here. 
      Which types of leads are most likely to turn into sales for you? Put another way, what is your best source for generating new business? I don't want to know how you advertise, I want to know know for example if phone calls are more valuable than web leads, or which types of leads have the highest closing ratio for you?
      For most people here and in most industries, its unanimous that word-of-mouth and in person interactions are your most likely sales but besides those what is the most reliable? Web leads, phone calls?  And when you do advertise do you push people to the form of contact that your most likely to close?
      The reason I ask is because I see people just advertise their website with no phone number sometimes or some people really push people to call. 
      Do you find that people who call your shop are more likely to come in than people who might come from a web lead such as an online form?
      Thanks in advance for any input.
    • By tirengolf
      I was looking for some input into advertising. I have really not done any the last 25 years. We are rebranding or should I say changing directions a little. Going back to tires, brakes ,alignment and maintence. When I did it last other than the phone book we did a little newspaper. I think those have basically gone. So many options out there, I just do not want to throw a bunch of money away on the wrong advertising. Any help would surely be appreciated. Sincerely David


  • Our Sponsors

×
×
  • Create New...