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My shop in on the Apponaug circle which is a mile long one way circle which has mostly businesses on it. The state started this massive project which will make the circle more of a "J" and it will be 2 ways as well. It will be awesome when it is done. The project is scheduled for 3 years.

 

Since the start of this project (July) my sales have increasingly dropped. So far this month we are down over 60% vs. last year. Last year was primarily tire sales but this year it is tires and I have really been concentrating on repairs as well.

 

I use to have 6 employees and now I am down to 2. I had to step up to the plate and roll my massive tool box out into the shop and repair vehicles myself.

 

To try and keep my business from folding I have done the following.

 

1. I purchased a 16 foot uniform company truck. I am in the process of building this truck into a mobile tire installation unit.

 

2. I have added a free 15 point inspection which we use to sell needed repairs and maintenance.

 

3. I am slowly but surely adding the value my customers are getting to every job on the invoice description.

 

and finally the reason for this post.

 

4. I am going to offer a pick-up and delivery service. RI is a very small state and I think this will work well. A huge hurdle for customers is simply finding the time to get their vehicle serviced. I plan on hiring a shop hand who can pick up and deliver these vehicles.

 

My questions are:

 

Can anyone tell me if they have tried this and what are the pros and cons?

What should I charge?

Is it a good idea to offer this free for repairs over a certain amount or should I charge a flat fee or fee per mile?

 

Any input would be greatly appreciated.

 

Jeff

(If they can't come to me... I'll go to them)

 

 

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I offer free pick up and delivery service, as long as they purchase oil change, tire rotation, and multi-point vehicle inspection. I also offer it if they have a check engine light or whatever, as long as they agree to pay diagnostic fee, regardless of what we may find.

 

Surprisingly, not that many people take advantage of it. We even leave you with a free loaner car (my loaners are not cheap cars either). I advertised the service in hand addressed letters to about 1500 customers. Maybe 1 or 2 a month ask us to do a pick up and delivery.

 

I'm curious about your 3rd point you made. Adding value to the description on the invoice? Care to explain, I'm interested.

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Mspec - Rhode Island is a small state and I am in the middle. So 30 miles would be the farthest distance.

 

Motley - Adding the value customers get on the invoice is the reason I am switching to Maxx Traxx.

 

Allot of shops will have this on their invoice:
Mount and balance.

 

This is a value mount and balance description:
Dismounted the tire(s), inspected the wheel(s) for cracks and corrosion on the sealing surface. Clean the tire sealing surface when needed. Mount and balanced the tire(s) with a computer tire balancer. Replaced valve stem as needed. Set air pressure the manufacturers recommended air pressure.

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1. I purchased a 16 foot uniform company truck. I am in the process of building this truck into a mobile tire installation unit.

 

Have you done research on how profitable this service may be?

 

2. I have added a free 15 point inspection which we use to sell needed repairs and maintenance.

 

This is a great idea. Make sure you have a process from start to finish on how to present your findings. This will greatly impact your customers receptiveness to the recommendations and ultimately your sales and ARO.

 

3. I am slowly but surely adding the value my customers are getting to every job on the invoice description.

 

Adding more detailed description to your jobs on the invoice is a great idea. You also should emphasis your warranty and anything you give away COMPLIMENTARY (never free).

 

and finally the reason for this post.

 

4. I am going to offer a pick-up and delivery service. RI is a very small state and I think this will work well. A huge hurdle for customers is simply finding the time to get their vehicle serviced. I plan on hiring a shop hand who can pick up and deliver these vehicles.

 

Certainly advertise this without any restrictions. Most people I have found will not take you up on it. If you are getting a large ticket, taking the customer where they need to go or ever given them a rental isn't a bad idea. It really depends on how your business is set up.

 

 

My questions are:

 

Can anyone tell me if they have tried this and what are the pros and cons?

What should I charge?

Is it a good idea to offer this free for repairs over a certain amount or should I charge a flat fee or fee per mile?

 

Any input would be greatly appreciated.

 

Jeff

(If they can't come to me... I'll go to them)

 

 

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We do a lot of pick up and drop off but we stay within our town for the most part. It is must to do in my area. I will say this get a credit card before picking it up you will eventually get burned if you trust them to come in and pay.

 

As for the the mobile car tire service I have seen companies do this before. They normally do not last that long maybe a year. I know one of the biggest problems is keeping the balancer in calibration from all the bouncing around it does in the back of the truck. Even though it is bolted down.

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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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