Shopcat

I get not wanting to alienate anyone. Disagreeing without being disagreeable is a bit of an art, but I think you have it mastered. Your posts and all the EXCELLENT reviews of your shop speak volumes about your ability to handle people and about your professionalism.

Good points all around. Mspecperformance stood his ground and that is awesome. No one should come into your shops and start running the show. Many shop horror stories begin with the shop bending the rules to "save money" for the client. The client has selective memory about all the free diagnosis, and his provided parts, but has clarity about his dis-satisfaction with the repair. Well done!!

I think "show and tell" is the way to go. Get that fresh steel on the rack and inspect it, like any other situation or repair. Show the owner the offending parts and explain if it's not tight, the alignment will NOT hold and it is a waste of time and money. Educate and inform your clients, they will appreciate your candor and you will sell plenty of repair and alignments. Lose the bottom feeder Euro Car crowd. You said "My philosophy is I cannot afford dissatisfied customers and I avoid negative reviews like the plague." Be selective who you take as a client, and bid the bottom feeders good riddance. Let these folks go to your competition, and I say that is a win-win. YOU decide who your clients are!

I think "show and tell" is the way to go. Get that fresh steel on the rack and inspect it, like any other situation or repair. Show the owner the offending parts and explain if it's not tight, the alignment will NOT hold and it is a waste of time and money. Educate and inform your clients, they will appreciate your candor and you will sell plenty of repair and alignments. Lose the bottom feeder Euro Car crowd. You said "My philosophy is I cannot afford dissatisfied customers and I avoid negative reviews like the plague." Be selective who you take as a client, and bid the bottom feeders good riddance. Let these folks go to your competition, and I say that is a win-win. YOU decide who your clients are!

I think "show and tell" is the way to go. Get that fresh steel on the rack and inspect it, like any other situation or repair. Show the owner the offending parts and explain if it's not tight, the alignment will NOT hold and it is a waste of time and money. Educate and inform your clients, they will appreciate your candor and you will sell plenty of repair and alignments. Lose the bottom feeder Euro Car crowd. You said "My philosophy is I cannot afford dissatisfied customers and I avoid negative reviews like the plague." Be selective who you take as a client, and bid the bottom feeders good riddance. Let these folks go to your competition, and I say that is a win-win. YOU decide who your clients are!

I know the collective mind yields the best ideas. Fresh perspectives and new ideas. I would like to make the same offer mspecperformance did, If anyone is interested in bouncing ideas off each other feel free to PM me. I enjoy working thru challenges and getting to the goal. I know there is so much we can learn from one another!!

Good point Frogfinder, attitude is the foundation of learning. Attitude does not necessarily guarantee success, but a poor attitude is doomed for failure

I like the idea of movie passes. Your client will think of you from the time they pick the movie, thru the entire evening. It turns out to be "date night" for folks that really need it! Excellent way to show appreciation.

All the shops I've been involved with experience a dip in business this time of the year. I worked with one shop that set aside some advertising money to focus on this time of the year. He sent a flyer to existing clients with unsold estimates in the system a little before Thanksgiving. It was the " Check Your Sleigh Before The Holiday" campaign. It worked well. The idea was get your clients to think about all the driving that was going to happen in the next few weeks. These were the same clients that had the seeds of needed repair or maintenance planted earlier. I took alot of the dip out of the business, and like mspecperformance also improved the ARO.

I went to the AAPEX & SEMA shows last month in Las Vegas. It was awesome. A chance to see the latest & greatest parts and products. I highly recommend the training that is available for shop owners and service advisors. The other shop owners I met were interesting and informed. They brought alot of great ideas to the discussions. Its hard to find this type & caliber of training.

The guy that says"Yes I understand you make a lot of sense, but what if its the water pump. It looks like its leaking from there. I JUST WANT A PRICE." is not a prospective client of mine. I stick with why I will not compromize my professionalism by phone quoting. Tell him your shop is ready to help him, and wish him a good day. After all, this guy is a hard core price shopper. 20% of customers are 80% of the problem, and 80% of your clients are 20% of the problem. You must decide if this kind of customer is what you want. its that simple. Not everyone is a good fit as a client.

We all get this call from time to time. I like to start a dialogue with the potential client. I explain that the water pump may be the problem, or it may be a symptom. Ask what his profession is...then draw a similar analogy. Lets use a roofer. "well Mr. Jackson, what would you charge me to put a roof on my 2000 sq. ft. house? I know it needs to be replaced". Then shut up and wait for his answer!!! He will realize the question is loaded with variables and assumptions. Tell him and answer would be a disservice to everyone. Any phone answer he gets would most probably inaccurate. Get them talking, understanding, as you win him over, offer a no charge evaluation if you can. Get them in and make them in to a new fan that respects your integrity and professionalism. Its fun to do!

I think this business can be fun, and here's proof. I was sitting here singing and laughing to myself. Thanks Gonzo !! Lets get that video going!!

I think that labor charges, parts mark up and warranty depend on quite a few variables. I would crunch some numbers to get to the answer. Consider the following :

How much potential repair volume is there, like number of Sprinters and miles driven in a particular time frame.

Parts mark up and labor charges depends on what is typical retail in your area, what this fleet may be used to paying, and most important, what you need to keep this deal profitable for your shop.

Warranty for fleets should be 90 days or so. Fleet vehicles are typically driven like they were just stolen.

Do your homework, decide what you are willing to do and keep it profitable for your shop. Put your proposal in writing and have a meeting with the principals.

I can also tell you that labor guides are skinny on the Sprinter, So charge accordingly. Its hard to beat the clock on these.

What ever happens, do not undercut yourself and your shop. Stick to your needed numbers.

Great post, and a great reminder that this is a service business. We can not let the conversation devolve into a price war. Educate your clients and let them decide if they appreciate value, and the experience of having a go to shop. Quality is remembered LONG after price is forgotten. The experience cdhowell shared is typical of "saving money". The guy with the Jeep will have spent more by the time his vehicle is done correctly than he would have spent by simply having it done professionally. xrac's story is equally telling. Years ago I was managing a tire & repair shop having a similar problem with a few local "price cutter" shops in my area. I did a reader board sign that read "We fix $59.95 Brake Jobs". I got quite a few new clients that became loyal!!

Sprinter service can be profitable in the fleet format. Sprinters have pattern failures that become profitable after the learning curve. The multi function switch xrac mentioned is typical. Sprinters also need rack and pinions, oil coolers, turbo resonators, and light bulbs and tail light assemblies to name a few items. The key is to get paid for all the little things you do, and use the right parts vendor. The shop I work with uses Johnson Industries, they speak fluent Sprinter and they usually have a good amount of stock. The advantage of fleet service is the steady work, and getting efficient at typical repairs. Be prepared because other independent Sprinter owners will flock to you as well once the word gets out.

I like to get off of the list, otherwise they will call again & again. Here are a few ideas.

If the caller asks for someone spicific by name, ask if that person is expecting the call? If not what what can I tell them this is regarding?

if its the free Goodyear air hoses, answer " we only use hand tools"...

if its the copier ink deal, tll them you still use 3 part carbon paper forms only.

This gets the call overwith , and gets you off the list at the same time....Better than hanging up.

Congratulations on deciding to seek some outside help. Many professionals use a consultant. You need an objective viewpoint from an experienced and trusted advisor that has your best interest and the best interest of your organization at heart. An objective viewpoint is critical to understanding your shop beyond your in house staff and family advice. You must do something differently to effect real change. Time, money and effort spent on improving and learning is an investment. Your website is awesome, and lots of great reviews on Google plus. You obviously care alot about your shop and your clients.

It's important to make what you can on tires. What the traffic will bear is important to consider. I think the best reason to be in the tire business is the additional work that will be found on those tire deals. For example front end work. Steering and suspension, brakes and everything else you discover during the inspection. After all they will usually do what is needed to protect their tire investment. While it is important to profit on tires, the big picture is where the focus should be!

There are a few ideas that I think could help a lot.

1. Pick a few parts dealership you may typically use. Price the parts from the parts department, then try to get an estimate from the same dealership for a repair using those parts. You will probably see the service department has higher parts prices, because they also can not do repairs without proper margins.

2. Bstewart is right, The $75 to $500 spread is too wide, craft it into a few categories.

3. Consider using OEM alternatives. There are suppliers that specialize in Motorcraft and Delco for example. This will allow you to use something closer to dealer list, and get a much better cost factor.

4. Decide what you must make, and explain that you provide a service, which includes parts, labor, sourcing, estimating, customer service and not to mention providing a warranty. Take the focus off parts pricing. You don't go to a Restaurant and focus on the fact that your steak would be $ 4.25 at the supermarket, and it is $ 28.50 on the menu, for obvious reasons. We are in the service business, and you must steer the conversation to this fact.

I had a shop owner a couple years ago that had a similar situation. I noticed that a disproportionate amount of time was spent moving vehicles around to accommodate new arrivals or to park vehicles that were ready for pick up. The shop production was impacted by this constant "parking rodeo". My advice to him was get a shop with more parking, and a larger shop. I advised him that bottom line is you get to a point and your shop is like a root bound plant. After careful analysis, the shop moved and now grows at a healthy pace.

You mentioned looking hard at the numbers. Consider what will happen if you don't move as well. Do your ROI and make an informed decision that works for you.

We all speculate about "what if...". I know that it is important for me to have a sense of purpose everyday. I think as human beings it is important for us to be productive in contributing in life. I've seen guys retire, lose that love of life. So my answer would pursue a passion that may have been previously unrealistic for financial reasons. Try to parlay the good fortune into something for the greater good that you are passionate about.

Joe, I appreciate the words of encouragement. I really enjoy your articles, both online and in the trade magazines. You are a credit this business and I appreciate you sharing your knowledge. Thanks!!

Your per vehicle average is low. I suggest you should be averaging about 2.0 hours per vehicle as an initial goal. Along with that, an equivilent amount of parts. The actual ratio is .80 parts to 1.00 labor. For your shop, 45 cars with an average of 2.0hrs per r.o., you will have 90 hours of production for those two technicians. That would be about 110% productive. This is a realistic goal, and can be achieved with some good processes in place. There needs to be a graduated pay scale to create incentive to find and do the work, I know with the numbers you mention, you are leaving work on the table. This is a particular concern because your customers count on you to let them know what is going on with their car. If you miss something during their last visit, they may wind up at another shop that will show them everything that is wrong with their car. However if you document and prioritize all the concerns, you will develop loyalty with your clients. I call it "we report, you decide". Give them what needs repaired first, then things in the near future, then recommended services, etc. They will be happy, you will also make more money, which means a brighter future, all because you are doing it right. I love this part of the business. You have good car count....now you need to make the cars count.

I believe people call for a price because they do not know what else to ask. They want resolution to their problem. Its expensive to get the phone to ring, so EVERY call counts. Start be talking about their problem, and use open ended questions, which will cause them to tell you what is really going on. " why do you think you my need a tune up?". The answer to that will give you the ability to get them into your shop. They may say "well, my fuel economy has dropped, and my uncle said I need a tune up". You may answer that they might not need a tune up, it could be something simpler. If you show you want to help, and add some new information into the conversation, then you are controlling the conversation and the situation. Demonstrate you want to help, invite them down to your shop with some urgency, " i had an appointment cancell, so we have an opening at 2pm, or 2:30, which is better for you? Then give them directions and make a new fan. They just want to solve their problem, and price is probably all they know to ask. It a pretty easy to beat price hack type shops, price is the easiest, laziest thing to sell.