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An Excellant Quote To Run Your Shop By


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This is a good one:

 

"There isn't anything in the world that someone cannot make and sell cheaper and the person who buys on price alone is this person's legal prey."

John Ruskin - English Essayist 1819-1900

 

Quality life-long customer's don't purchase based on price!

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TTP

 

I have found that it all depends on the area your shop is in. You are telling them the right thing. It's you reputation that can be hurt if and when something goes wrong with the cheap parts that they are probably bringing in. Don't take that chance. What may also help is offering a better warranty. My warranty is 3yrs/Unlimited miles. We only use OE or factory parts. We pride ourselves on this. Remember, it is your shop and you only want quality life-long customers.

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If you are selling parts and labor you are going to lose. You are selling a service. That service happens to come with a highly qualified technician performing the work and an industry leading warranty and also includes parts and labor. When you start the sales conversation with parts and labor breakdown you just put yourself on the bottom of an uphill battle.

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If you are selling parts and labor you are going to lose. You are selling a service. That service happens to come with a highly qualified technician performing the work and an industry leading warranty and also includes parts and labor. When you start the sales conversation with parts and labor breakdown you just put yourself on the bottom of an uphill battle.

 

Yes, you sell a SERVICE! Never give a customer a break-down unless they ask. We always give the bottom line total first, then individual service prices (only when asked), then a break down of parts and labor (only when asked). It makes the sale easy.

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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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