FROGFINDER

I try to avoid dealer parts If i can get as good or better parts elsewhere. What mark up i don't decide to get in parts i must collect in labor and fees. I will compete on Caring Service and Referrals. I customer has discount card of mine they get $ off as well.

I have found that just being 1000 feet off the main drag , not hidden but behind commercial on main drag with residental behind you, creates a nicer atmosphere.

I have sent out hand written Christmas cards with my business card marked with $25.00 off since 1988. Each card reminds me to pray over each customer and family. I have found that if my customers are doing ok then i will be ok. Let each customer in on the fact that you are very grateful for their business and referrals to others. Hug where appropriate.

Tape everything and shop it around for a Reality show.

 

 

I wish ya'll were closer to Houston so I could help ya'll.

A mentor is needed.

Double your prices for a month or two to see who really is loyal to you before you expand. Always give customers something good to see. Buy and Own along the way. Overhead is your enemy.

does anyone know how the insurance and liability is handled with loaner cars? Worst nightmare is a customer getting into a major accident with your vehicle.

With todays blame game climate, develop an eye to eye,on a first name relationship with a rental car companies personnel. Set things up for customer to pay and have them picked up or dropped off as needed.

I want to service, repair and worry about Customer Pay cars not My Fleet Of Loaners.

 

 

Now if I Sold cars I would have a different answer.

FROGFRINDER, topped of with fuel? Really?

Really.

 

Many people come to your shop on fumes and low fuel warning on. Even $20.00 bucks worth is nice for the lady customers on a rainy/cold winter day.

Hire attitude and Train skills.

I would call and reserve car in customers name. Make sure they had proof of insurance and credit card. I help get customer to and from rental car but they often get there own ride. Customer pays rental car at "Shop Repair Rate" and I give them rental car rebate off the repair invoice.

Don't enter a price war. No one wins a price war. For a dealer to lower the labor rate that much means that the dealer is desperate and in financial trouble. The same way you saw no change in your business when you raised your labor rate, the dealers will see no change in their business. All they will accomplish is less income. Do what you do best, provide the best customer service and WOW the customer each and every time. Take price out of the picture by doing this.

 

Think about this, ever go into a Starbucks lately? They are feeling the affects of the economy, but you still pay 2 to 3 times for a cup of coffee. They focus on the customer, not the price. We need to do the same.

 

Hang in their, better days are coming. I know it and I feel it. We have turned the corner, and the road looks pretty good.

Starbucks is an addiction to sugar and caffeine.

I'm sitting here reading this thread and getting flash backs of some of the excuses/reasons that I had used for not charging what I needed to to stay a viable,profitable buisness . I too thought that I couldn't charge " those prices" ,my customers just wouldn't pay them. I went to the seminars,read the books and still did it my way because my area was different .

Then came the day I had to tell my wife that we were losing our home of 22 years be cause I did it my way. We couldn't afford to stay so after some discussions we moved 2800 miles and started over.

That was in 2007. In 2008, in the middle of the reccession I was forced into ownership again and started making the same mistakes all over again.

One day I was talking to a friend who owned his own buissness and I was complaining about not making what I thought that I should,we couldn't afford to do this or that,blah blah blah. He looked at me and just laughed and asked why was I doing it then. He started asking me some very pointed questions about how I charged and what those charges were based on.That was uncomfortable but I got it.I started looking at my costs and started remembering some of the information I had gotten for those seminars . I started applying that info to my buisness and it worked.My labor rate went from 75.00 to 97.50 over night. My parts prices went from list or less than list to a 5 tiered matrix. We charged for all the labor we produced.

I was ready for all the push back I knew I was going to get.

 

NOBODY NOTICED!!!

 

My customers still came in and had work done, We still were fixing cars. All those years of struggling and doing without,putting my customers financial well being over mine and my family's for nothing.

Sure I didn't sell every job but the ones I did sell I made money on.

Our average RO was 270.00 is now 497.00 . Our gp on parts was at 35 % to 38 % is now at 50%. OUR labor gp was around 50% is now at 72% . Our total gp was at about 43% is now at 60%. Our net was about 5% is now at 28%.

 

I will never have to have that discussion with my wife again!

 

Your customers are coming to you because they trust you, not that shop dow the street. All of your prices have to be based off of your costs .Period. If your basing your prices off of anything else, STOP. Thats like the old joke," I lose money on each job but I make up for it in volume" .

 

If you can't price your services fairly and make money than why are you doing it!!

NOBODY NOTICED? Then you are not charging enough and cheating yourself and your family!.

If your customers are not calling the Police-You are under charging!

 

I am being sarcastic BUT:

Trying to think of my Neighbor like myself I ask How much is Greed?

As a service advisor I don't mind charging premium prices for my time, experience, skills but I have a problem working for a shop owner that pressures his crew to charge what works out to be $270 per hour, parts not installed or old parts cleaned, services not done professionally or not at all. NOBODY NOTICED EXCEPT ME!

What works for me... I answer the phone very friendly, energetic, upbeat and professional. I let them feel my positive energy through the phone. I quickly work to build rapport. After I build rapport and listen attentively, I then work to establish control of the conversation. (You will find Not all Phone shoppers are looking for the cheapest price . Some are trying to establish a price for their budget.) I then ask them how they came to the conclusion that they needed this repair. I then pre-qualify the phone shopper and ask what type of a price are they looking for? How long do they plan on keeping the vehicle. This is my information gathering technique. Based on the answer I formulate my response. If they say they are looking for the cheapest price, I then counter by saying "based on your answer You must not be concerned about Safety, quality or dependability. This usually flips the table over. I then let them know that we are not the cheapest in town nor the most expensive either. I let them know that we would like to take a look at the vehicle as so we can give them several price options. I let the price shopper know that we hire the best technicians available. We have a drug free workplace, we offer nationwide warranties. Same day service most repairs. How long we have been in business etc. All though this response is long. This all happens very quickly on the phone, based on the customers responses. 8 out of 10 times our professionalism and genuine care is felt through the phone in wanting to help them. This gets us the appointment to bring their car in. As a final note if forced in to a phone quote I give a range in price from low to high. We are often told they brought their car in to us because we were so nice on the phone !!! Not short and frustrated and making their call seem like an annoyance or interruption. This is how we win over people that call other shops before us. Remember people do business with people they like and can form a connection and mutual understanding !!! Respectfully Submitted, John. Hope this helps out fellow Shops !

John- That was my style for 26 years until I had a stroke from doing 3 peoples jobs.

I ask them "When was the last time a over the phone estimate accurate?. NEVER! Then do yourself a favor and bring it in for me to check out. If you don't come here I won't be able to help you"

I raised my rate in July from 79.95 to 85.95. Didn't see any real loss in business but it has been a tough go for a while now. Avg ticket is 2.6 hours so it made about a 15 dollar difference in each ticket. Then my neighbor, a used car dealer, told me the local new car dealers were lowering their rates. Took a Focus in to dealer for a security issue I couldn't address. In their service drive the sign that had 110.00 per hour had the 110 crossed out and 89.95 marked in at the bottom. A quick survey found many of the local dealers had LOWERED their rates from over 100 to the 90 range. Makes me wonder if I made the right decision. I know what I need to make based on avg car count. But if I have a slow week then the numbers all go out the door.

MR. WIZARD I DONT WANNA BE A SHOP OWNER ANYMORE!!!

Dealers have the advantage of being paid by the manufacturer for recall's and warranty work. They can lower their posted labor to make them look like a better value than the independent shop.

Hire attitude, train skills.

My only issue is I like to own the property I work out of.

Hello and welcome,

I agree on focusing on certain makes. One can also let dealers and other shops that you are the go to shop for those makes. I focused on Jeeps, Dodge, Chrysler, Plymouth for 26 years and made a good living.

These days one must expect the customer to ask for a discount. It should be part of your estimate on the repairs/services that you sell. Our AAA DISCOUNT WAS 10% OFF LIMITED TO MAX $50.00 OFF.

This proves the theory that we should all be recruiting all the time. When you suspect that you have a "square peg in a round hole" problem is when you should start looking for new candidates. Not saying this is what I do. I'm reminding myself.

Business is like fishing. You got to keep your baited hook in the water for employees and customers at all times.

We make AAA LOOK GOOD at our expense. I dropped them when they started selling batteries, declined warranties on their batteries, and when the rules became more "big brother".

You found a tech-has he started yet?

imo there something wrong when a common man can't fix his own wagon. The Dealers are even struggling. Vehicles have become disposable to many people.

I have done this for several employees . Check oral surgeon training hospitals. Have the work done in Mexico.

Does he go to church?

Hand wash the car, clean windows inside and out, top off fuel tank., Many people will notice but still some will not.

With all respect many people turn the key/push the start button and operate in the NET/CLOUD. Tonight I watched a lady driving and texting for several miles in the dark before she noticed that her HEADLAMPS WERE NOT TURNED ON!

Your best salespeople are your customers. Give them perks for referrals. It costs +- $100.00 per new customer so invest it in you customers. Drive around your neighborhood and see what's in their driveway that you want to service. Contact them . Everywhere you go or do business with should be reminded that you are in the car service business. Most customers like to pick up their cars Hand WASHED AND TOP OF THE FUEL. When they notice it Thank them for their referrals and give them a few cards.