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Outwestauto

A/C Service and Repair, and LOF's How to you price them?

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Hi everyone,

 

Just to give a little background, I am now part owner of the family business with my Dad who started the business. My dad while a great businessman, give way to much away and has his own old school ways of doing things and his own way of pricing, which means giving way to much away. After having a sit down talk with him, and letting me make some changes to the fundamentals of our pricing and billing structure after reading many articles on this great site. I Setup a pricing matrix for our parts and tires, so our margin has gone up, along with making sure we are getting enough labor and not giving away all our diagnostic time and such. In the first three months I have been making these changes and now are gross profit is up 45% over the last three month compared to the last few previous years and doing better with each and every change I have made. Now I am moving on to the smaller things that we are doing wrong or as they come up.

 

The weather is getting warm, and It's becoming A/C season. The way he currently handles A/C is we do a free inspection, which includes checking all the standard stuff like, compressor operating, belts, visual check for leaks, system pressure etc. Then he charges a flat rate of $100 for Servicing the system including freon. And then many times i get stuck diagnosing a electrical problem with the fans or compressor operation after we service the system as he will just throw it in with the service since the system was low and was not cycling. How does everyone else price there repairs and handle the process of A/C service, I know they way he is doing it now is totally wrong and shorting ourselves far to often, and then also not charging by the ounce/pound for freon also needs to be done.

 

My second thing is oil changes, currently he has two set prices for oil changes, $30 flat for a filter, regular oil, labor, and a multi point inspection. Then we also have a synthetic oil option for $50 dollars including all of the above. I know this is a horrible way of doing it but he has been doing it like with for 10+ years and I know we lose money on oil changes that take six or seven quarts and have an expensive oil filter. We also only offer one brand of oil, and we get a lot of request for like a mid level Castrol GTX oil change, or a more premium Mobil One. I know there is many ways to fix this and price it but I wanted to get opinions of what you charge and how you bill it out, along with what options have worked for you.

 

Thanks

-Donny

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