KMS

There are many good matrix ideas said already. You want to make on average 60% on parts. Remember, you don't always have to be the cheapest, you just have to be the best with the highest quality of customer service. Customer service sells your shop not the price of the repair!

If he good employee besides that, give him a chance, but get it in writing. If he hasn't personally cause any issues with customer's cars yet, pull him aside and give him an talking too. Tell him that if you ever catch him again - he is gone. No excuses!

What is the car count, ARO, and Hours per RO. If you don't mind me asking?

You don't need a high car count. I know a lot about this subject. Let me show some examples: 15 cars a week -------- 15 ARO $250.00 -------x $250.00 Equals ---------------- $3,750.00/wk 20 cars a week -------- 20 ARO $250.00 --------x $250.00 (Remember, for this scenerio you probably paid to advertise to get these customers at a rate of $350.00 per customer - $1,750.00) Equals ------------------ $5,000.00 - $1,750.00 = $3,250.00/wk (You lost money!) 15 cars a week ------- 15 ARO $350.00 -------x $350.00 (No extra in advertising. You added only $100.00 to each RO.) HOMERUN!!!!! Equals ---------------- $5,250.00/wk Lets say, you find a simple and cheap way to advertise and you also bumped your labor rate slightly - again $100.00 per RO. 20 cars a week -------- 20 ARO $350.00 ---------x $350.00 Equals ---------------- $7,000.00 - $19.95(advertising) = $6980.05/wk (GRANDSLAM!!!!!) ANY QUESTIONS WORK SMARTER, NOT HARDER!

Knowing your cost is key, I try for 60% Gross Profit. It doesn't matter where is comes from. I have taken many classes on this subject. The most important thing I learned was "Charge your customer's to profit!" Never be afraid to be the same price as the dealer or even more. Do you charge EPA or Shop Charges? Don't charge parts and labor to your customers. Charge per Service (Parts and Labor together). Never seperate unless asked to. Remember, you are a Service Shop, not and Parts and Labor Shop.

We have tried CustomerLink with little success. They are okay with retention, but I can do just as good myself. I posted this in another forum: "I have tried all the mailing statigies. It has worked a little. I think it is probably our location. We are some what in the middle of no where. Every new customer says that they never new we were here, even though they have driven past our shop many times. Mailing lists get to become pretty expensive, and I have tried post cards, brochures, and letters. They all seem to get about the same returns. Recently, I spoke to someone from a tech group that I am involved with, and they mentioned an upcoming website that is suppose to advertise for you. He also said it is going to be fairly cheap (We'll see?). I guess it works in conjunction with word-of-mouth. Its a lead generator. It gets the customers to our doors, and our quality services keeps them there. I will let everyone know if I here anymore updates. It may be worth a try." The hard part is getting them in the door. The easy part is keeping them happy.

I like the movie pass idea also. I don't feel that there is any problem with being personal to your customers. What personal things you want them to know about you is a differenty story. You need to have relationships with your customers. This is how you earn their trust.

I charge 9.75%. I learned not to have a round cost for anything. (Example: $142.27)

I have tried all the mailing statigies. It has worked a little. I think it is probably our location. We are some what in the middle of no where. Every new customer says that they never new we were here, even though they have driven past our shop many times. Mailing lists get to become pretty expensive, and I have tried post cards, brochures, and letters. They all seem to get about the same returns. Recently, I spoke to someone from a tech group that I am involved with, and they mentioned an upcoming website that is suppose to advertise for you. He also said it is going to be fairly cheap (We'll see?). I guess it works in conjunction with word-of-mouth. Its a lead generator. It gets the customers to our doors, and our quality services keeps them there. I will let everyone know if I here anymore updates. It may be worth a try.