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Ok here is a new one on me. Usually when a customer approves a repair large or small we either get verbal approval over the phone where we list the time and method of call (whether we called them or they called us) or written approval through a signed estimate, whether in person or by email.

 

Well a new customer brought us a 2001 F150 with severely worn timing chains and guides that turned out to be broken as well as leaking valves from kissing the pistons. Of course this led to a replacement engine.

 

After going back and forth for about a week with the options of a used engine (which did not last long) or a reman engine (which he chose) he finally approved the work. He brought in his deposit for the engine along with a contract for me to sign basically stating all that is getting replaced and the warranty involved. Nothing above what we agreed on but a little out of the ordinary.

 

Now the customer is an electrical contractor by trade so I'm assuming this is where this comes from. I signed the agreement since nothing was out of order and I wanted to make him feel comfortable since he is a new customer.

 

What are your thoughts on this?

 

PS- The main frustration with the customer comes from having to go through explaining what I could research as to the pros and cons of different brands of reman engines, only to end up ordering a Jasper unit like I quoted at the beginning. I have always had good luck with Jasper products and the one time I had an issue it was resolved quickly and painlessly.

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So, he brought you a contract/warranty to sign? That is a first with me. I would rather the shop create its own documentation and not be subjected to someone dictating to me the terms. It's my business, and I determine the terms. This contractor must not trust others, would he accept a contract from you, if he does work for you?

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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?
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      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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