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The best thing I ever did for my business.


John Pearson

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I am a nice guy like really nice guy, and with that I make a terrible service writer. I am always trying to give people a deal, or not charge diag, or hear how someone is broke and let them make payments and never get paid.

 

The best thing I ever did for my business was get out from behind the computer. I still come out of the shop to interact with customers, talk to them, explain things and meet them but I stay away from that damn computer.

 

Part of it is our reputation has grown and word of mouth has spread, but with my service writer taking over things we are seeing double the sales that we saw last year in this first quarter.

 

 

What is the best thing that you have ever done, or not done for your business?

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I am a nice guy like really nice guy, and with that I make a terrible service writer. I am always trying to give people a deal, or not charge diag, or hear how someone is broke and let them make payments and never get paid.

 

The best thing I ever did for my business was get out from behind the computer. I still come out of the shop to interact with customers, talk to them, explain things and meet them but I stay away from that damn computer.

 

Part of it is our reputation has grown and word of mouth has spread, but with my service writer taking over things we are seeing double the sales that we saw last year in this first quarter.

 

 

What is the best thing that you have ever done, or not done for your business?

 

I completely agree. I am the exact same way

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I hired a service writer a couple years ago. Set him up with a pricing matrix and some standard policies and things were going great.

 

Then one day my wife tells me that she heard rumors that people did not like my service writer and I was losing business because of him. I investiagted a bit and found out the few people that were complaining were the ones I used to let make payments or give "deals" to.

 

They didn't like having to actually pay for their car when the repairs were finished.

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That's too true.

 

I ended up having to eventually let him go and I moved myself back to the front desk. Now I treat myself as an employee when at the desk and stick to the policies I had set up for him.

 

It's hard to do, but well worth it. I didn't lose any customers that were worth keeping.

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I have a pretty good one right now, she had no knowledge about cars before coming to work for me but has work ethic and is learning. I can see her getting a pretty good grip on things, the only problem is that she is a military wife and scheduled to move in 1.5 years.

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The owner giving deals and letting folks take their cars before they pay is typical. I think a service advisor as a firewall is a great idea. Give them parameters and back them up. In the end people respect the fact that you have a business that's run like a business. The "deal" customer and the "ill pay ya later" customer usually ends up upset, and that's what you get for your trouble.

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I had a shop many years ago with my brother and we let a handful of customers charge. When I moved and left the shop we had $45,000 on the books which was never recovered.

 

When I started RI Tire and Service on my own I made a deal with the bank. They promised not to fix cars and I promised not to give credit.

 

I love when the customer says "I'm Good For It". I tell them that I am sure that they are good for it so it should not be a problem to borrow the money from a friend or family member.

 

This is an easy one in today's market place. Simply do not give credit. Customers are reluctant to ask for credit because they know financing and credit cards are apart of our everyday life.

 

If you want to make credit available and make a few points at the same time then you should contact a company that specializes in credit. I use http://paramountpayment.com/

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I had a shop many years ago with my brother and we let a handful of customers charge. When I moved and left the shop we had $45,000 on the books which was never recovered.

 

When I started RI Tire and Service on my own I made a deal with the bank. They promised not to fix cars and I promised not to give credit.

 

I love when the customer says "I'm Good For It". I tell them that I am sure that they are good for it so it should not be a problem to borrow the money from a friend or family member.

 

This is an easy one in today's market place. Simply do not give credit. Customers are reluctant to ask for credit because they know financing and credit cards are apart of our everyday life.

 

If you want to make credit available and make a few points at the same time then you should contact a company that specializes in credit. I use http://paramountpayment.com/

Is this different from Carcare one?

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ill pay ya later customers suck so much....

I did that with a really nice older guy that needed the car so he could take is ill parents somewhere out of state. Let him go with the deal that he would return as soon as he got back to pay the bill, just a shade over $500. Well he fell over and died from a heart attack while on the trip, and his wife said, not my problem what he owed you, take a hike! So that was the first and the last time anyone got out of the shop without payment in full!

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I guess the nice older guy was married to a ??????

Ya just never know, he was a very nice guy, never had any dealing with his family. But I sure learned a valuable less in my life, Nice or not, you pay when I'm done. We all make mistakes, I always tried to learn the ones that cost me money out of my pocket only once!!!

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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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