newport5

So Joe, did you remove my post ? 😉

My $0.04. Ok … $.06 I think we got ahead of ourselves by only talking about what happens AFTER the “Price Shopper” calls, not the build up to the call. Plus, the forum conversation somehow turned into a quote for a diagnosis, not just a quote for the cost of a repair. They didn’t ask you to diagnose their coolant leak. They asked how much to replace a water pump or radiator. The “price shopper” isn’t asking this question out of the blue: they have a car problem. And they don’t have a shop they trust to take it to, for whatever reason. They’re new to the area or they don’t like their current repair shop because they felt overcharged last time, didn’t feel special, or whatever. They got their car diagnosed but they don’t like the shop that it’s at so they’re searching for another repair shop. And they’re doing it the way that makes sense to them. The “price shopper” can’t go down an alphabetical list of repair shops in the Yellow Pages like the old days. So they search something like, “auto repair shop near me.” If they’re like our German car customers, they’re going to read some of the reviews. Then they’ll pick three to five shops to call. I don’t think they’re necessarily looking for the lowest price. I think they’ll pick a shop priced in the middle. OR … they’re looking for a shop they can connect with that has a fair price. Here’s how I handle that phone call. “What do you charge to …? Or, “Could you give me a quote to …?” I say: “Sure, but hang on a second, I’m right in the middle of something. (short pause) By the way, how’d you hear about us? (I’m not interrogating: It comes across as small talk) Did you check out our reviews? We’ve got some great reviews. (Again, it comes across as small talk) OK, What year, make and model again? (pause, as I search) How do you know the problem is a water pump/radiator? (again, small talk to see if a shop diagnosed it or their car-guy neighbor) When I get the quote, I say: “I’ve knocked a little bit off of list price this time because I want you to end up at a good shop. I’ve also quoted you a quality part. If you hear a quote that’s a lot less than ours, it’s probably a lower quality part. Find out the brand and call me back. I’ll let you know what I think of it. (I’ve just gone out of my way for someone who’s not even a customer yet). This is also where I can toss out some things for them to think about when choosing their shop. “We have _______ trained mechanics, the latest diagnostic software, ____ years of experience, we could eat off the floor, etc.” I’m helping make a big financial decision not just luring to make an appointment. And I believe they can sense that. That I’m more about the relationship and helping them, not just making money off them. If the above connects with them, they’ll ask me what the next step is. (In other words they’re the ones making the decision on their own and not fighting off my sales pitch – there’s a big difference). If not, they may actually be a price shopper. “What kinds of prices have you been hearing?” There’s always a pause. They’re hoping I’ll be way under their other quotes. I could go on, but that’s more than enough for now.

I'm a bit confused. You DID the work and now the warranty company is fighting you on the claim? It's approved BEFORE you do the work. That in itself can be delicate on how you word the claim but it's usually up to them whether it's covered or not. But there's a lot more to it. Some warranty companies want to supply the parts. That sucks. And re labor charge, try to look at several labor guides and pick the highest: they will ask you which labor guide you're using. Add $15 or $20 to your usual labor rate to pay for all the phone calls and hassles. I was told by a warranty guy to post it in your customer area. AND your storage rate. If they don't want to pay your normal parts prices, the customer should be told that ahead of time and billed the difference. I hope others chime in

Matthew, I wonder if they'd rather talk to AI because they won't get sold stuff !!! 😉

My hardwood flooring buddy created his own AI phone answering. I heard one call and I was AMAZED. It sounded SO real. Pauses and everything. Interesting voice even.

Wayne, I’m sorry for the late reply. I’ve seen many nice comments from flooring business owners who found a lot of value in the manuals. Instead of the business owners being asked questions all day long, the staff just refers to the manuals. It SO makes sense. And the Employee Handbook saves time when onboarding a new employee. It will probably cut your time in half. AND when selling your business, when you can supply shop manuals. The new buyers will be thrilled. I know it helps sell the business: and probably for more $$$! Brian Adams: 714-556-3910 [email protected]

Good points I still remember from 30 years ago, a mechanic or service manager taking over the parts department. He wanted parts to be readily available so the inventory swelled up !!!

Hey Joe, Regarding selling a repair shop: My buddy owns a very successful hardwood flooring business, and like you, he's focused on helping contractors work on their business, not just in it. He created 4 powerful business manuals—including a detailed employee handbook and office systems—to help contractors run their shops more efficiently and professionally. Each manual comes with easy-to-use, fill-in-the-blank templates so you can quickly customize them for your shop without starting from scratch. One contractor who bought the manuals said: > “How can you sell a business if it doesn’t come with a playbook on how to run it?” He also said the employee manual alone was worth the entire price. Bonus: when potential hires see the employee manual, they immediately realize they're applying to a well-run, professional operation—which means you attract high-quality people, not just the average ones. Let me know if you want me to connect you guys—he’s got something really valuable here.

Joe, I can see that for invoices above $2k or $3k, if the customer knows ahead of time. I see how that makes sense to the business owner (and their accountant). But I’ll bet to the customer for the lower invoices, you’re trying to eek out another $10 or $15. AND, they could think, where else are you eeking out an extra few bucks (or more)? Apparently you are not profitable enough to absorb that. Why? Not enough (good) customers? Why? It’s a convenience for them. So they’re stuck paying that or write a check or go to the bank and get $1000 in cash??? Plus many get cash back or flight miles, which you’re also taking. Remember searching airline prices, comparing prices, making your decision, only to find out at the very end there are additional charges? Taxes, fees, and those darn baggage charges. Did you like that? I doubt it. I think credit card fees fall into that category (for the customer).

Personally, I don’t want a bunch simply “satisfied” customer reviews; I want the thrilled customer reviews. I prefer the first time customer. We give them over-the-top service, helpful suggestions, and a fair price. We are in good spirits, joke with them, welcome them to “our family” of customer/clients. When we’re finished with them and they are heading to their car, I use the “Colombo” technique by walking out to their car as if I had an afterthought and say; “Hey, if we helped you today, please give us a review.” They are usually shocked that a repair shop can be so helpful. Which make for an exceptional review. I gotta believe that someone reading that says to themselves: “I GOTTA go there!”

I just dealt with a warranty company for a small amount, $400 and it went very smoothly. He said his higher-ups said not to be too picky for small amounts: not worth it. Don’t know what "small" means. Under $1000? He agreed to MY labor time. AND he somehow “saw” our labor rate at $145. I said I don’t know where that came from. We’re $185. He easily agreed. And agreed to my parts price. We’re $20 over normal labor. YEARS ago a warranty guy said I could post a sign that says: Insurance labor rate is $$$.

OK, but you can take care of a customer AND make a profit. EVERY customer knows a business HAS to make a profit. And the profit is not just to pay the bills plus some fun money. There's health insurance, money for an emergency, money for new/updated shop equipment, paying an A tech, eventual retirement, ... and ... Why have the headaches of business ownership with just a normal paycheck???

Joe, Thank you for the kind words.

First off, advertising isn’t the only thing. Stay on top of your social media. And the pictures you post don’t have to be just car stuff. But maybe suggest/encourage scenic drives. Weekend vacation spots. How about lifestyle posts? · Are your service advisors doing all they can to provide an amazing customer experience? Agreed, but I would expect some “amazing customer experience” ideas. See my article in Ratchet and Wrench magazine on tips for making your next customer interaction fun—and memorable. https://www.ratchetandwrench.com/shop-life/columnists/article/33005755/broski-its-about-the-customer-experience · Are multipoint inspections being done properly? I can see that, but I don’t understand why that even has to be said. I’m old. I started working on VW bugs in my back yard. My first real job as a mechanic was at a Porsche only shop. We check out EVERY car that came in. And not to make more money, but to take care of the customer and their car. Where practical, we road tested every car before working on it, to check the handling, braking, alignment, acceleration, gauges, etc. It seems every 6 months to a year, an article talks about doing DVI’s. Why? The only reason that makes sense NOT to do one (from the technician’s point of view) is if the service advisor takes too long to get an approval and the tech has to wait. · Are your service advisor proactive with making sales and trained properly to handle objections? Quit with the “sales” and the “selling” and start advising. Advising what’s best for the customer, which is probably best for the shop as well, IF you’re dealing from a relationship perspective with “customer/friends.” Customer friends who KNOW you have to make a fair profit, just like every other business. And you won’t get nearly as many objections.

I would say WOM is just as effective as it was. But that doesn’t mean don’t use Google or social media. Here’s an example that surprised me. I was chatting with a first-time caller who was referred by a good customer. As we were talking, I suggested he check our great reviews. There was a slight pause. He said he’d already checked our reviews. Wow! Even after being referred. So yes, BOTH are valuable.

I still recall a comment from a customer (back in the '90's) re our Porsche repair shop that had a fair location. He said: This place is a "find." We did well, possibly because we specialized in one car brand. That owner also bought the land.

Our program shows recommendations when we make an appointment.

Re: Should we get back to the art of selling, taking care of customers, offering options and making sure we create an amazing experience? Should we get back to the art of selling? NO! Customers don’t need to be "sold." We need to sell ourselves. Google search: “nobody likes to be sold.” More soon taking care of customers: YES ! offering options? Such as? and making sure we create an amazing experience? OK. What makes for an amazing experience? I read online somewhere: “Today’s customers want an exceptional experience, one that puts you and your shop above the competition. Which means: easy scheduling, a fast turnaround, open communication, fair and transparent pricing, and repairs that are done right the first time.” To me, that is NOT an exceptional experience. That is the minimum. That is a routine experience. Thoughts?

Ugh! It may not be actual overselling but it's certainly the perception of overselling. The darn (AAA) survey that said customers "feel" they were overcharged, but they don't explain how the customer decided that. I TRIED to get a copy of the AAA study but to no avail. ESPECIALLY how the actual questions were worded, which is important. And this lame idea about the HUGE value of videos of the needed repairs, the "transparency." I saw a customer's video of cracks in his differential rubber mount, "needing" replacement. but no clunking. And this was part of a $4000 estimate on a $5000 Lexus. It was from a Lexus dealer. I see this (common) stuff as the main problem with the perception of our industry, NOT the alleged unscrupulous shops, which I guess to be about 10% on the shops, if that. AND I heard (an exaggerated?) comment that 3/4 of first time customers don't come back. Jeez, I wonder why? Overselling. QUIT doing if. Suggest half of it and they'll come back. Meaning less money spent on advertising. I could go on. Sorry ...

I thought the video was a bit over the top. BUT makes a good point. Having said that, I don't think we have to "sell" anything - we're not a mattress store or a used car lot who HAS to "sell." The car either needs it or it doesn't. And don't toss out 2 benefits for each service. Now you're trying to persuade and the customer feels that. We're dealing with people, not cars. If you've built up a good relationship and they trust you, I suggest you "tell" them what it needs. I'd LOVE to do a series on that. How do I do that?

I'm not a fan of scheduling the next appointment because "I" don't want to schedule anything 6 months away. I GUESS if it's in their appointments, when 6 months comes around, its a nice reminder.

I agree, but … I often read about “The Customer Experience,” or providing a great customer experience, or exceed customer expectations, but it stops there. I seldom read about what that means or looks like. Jt’s just “go do it.” I have my observations, but I suggest we open this up for discussion as to what that means. And I don’t like what I read recently: Easy appointments, clear explanations minus jargon, quick turnaround and the overused “fixed right the first time.” I think those are routine expectations, not great customer service.

Thank you for the kind words re the reviews. 34 reviews is not many but I’m not after volume. I’d heard years ago that it’s not the (merely) satisfied customers who refer you, it’s the thrilled ones, the delighted ones. I’m interested in joining, but I need to find the correct level. I want to start coaching shop owners and service advisors on how I get approvals the fun, easy way. I know there is a “professional” level, but I don’t have my program together yet, although I’m speaking on that topic at an auto event in Maryland the end of this month. I would enjoy posting more.

I don’t think customers will notice a $10 increase in the hourly rate. Unless they ask. It would just end up in the total. I seldom have a customer ask our hourly rate. If they do, the owner says: “I would LOVE to charge by the hour, then I can slow down!”