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Will You Price Match your repairs or service?

Joe Marconi

By Joe Marconi
in Customer Experience & Reviews

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dfrisby Collaborator

dfrisby

Posted
Posted

The issue I've had recently is people ordering their tires online, and then wanting us to drop everything to install them today. My tire prices are competitive with all other shops around and even the big box store. I can't and won't attempt to compete with online prices for the tires. My mount and balance price is $80 for a set of 4 plus disposal and valve stems if required. My markup on automotive tires is a minimum of $20. When they buy online, they are in turn taking $80 away from me.  Yes, I'll still install the tires. No, I won't drop everything to do it. Schedule at least a day or two in advance to drop off car and it'll get done same day. I'm not going to move a profitable job to the side for a customer that wants to bring his own steak to the steakhouse to save a couple bucks.

  • Like 3
  • 3 weeks later...
newport5 Enthusiast

newport5

Posted
Posted

Briefly,

I’m opposed to price matching. Even just the IDEA of pricing matching. That’s not to say that I’ve never done it.  But …

First, you just taught your customer how to get your price down next time.

Second, since you did it this time, you’re somewhat ok with it and you’ll do it next time.

Third, think of the time it took to get to the point of comparing “line by line.” The research, phone calls and the actual time going over the “line by line” comparison with explanation. All that to make less money ??

Think of it: your customer takes 15 minutes to a half hour to find and call three shops for quotes and saves $100 with you. That’s $200 to $400 an hour for them.

Instead, build up such a relationship with your customers/clients/friends that they trust you are taking care of them (and yourself) at a fair price.

If your customer is calling other shops for price comparisons, you are probably “selling” parts and labor. I’m close with Joe, but instead of “selling” Relationships and Trust, I’m Building Relationships and Trust.

More later …

  • Like 1
  • 2 weeks later...
sparkerauto Enthusiast

sparkerauto

Posted
Posted

We don't do any price matching as most of the customers that are shopping for price only, are not what we want. We strive for regular customers that will return for more services, not just a one time deal. We want the relationship, not just the sale. 

  • Like 1
Network Auto Body Newbie

Network Auto Body

Posted
Posted

@Joe Marconi You said that right. 

Quote

There is always something left out or the parts are not the same.

Deserve attention towards O.E.M parts, repaint work done is not satisfactory, repair guarantee might be differ or sensing a difference in the way your vehicle handles. Improvement are key to ensuring and maintaining the highest possible level of satisfaction among the customers. Competition heads neck-to-neck in repair shops. The customer rely on quality and cost of service.  A happy customer is one who will come back whenever they need help. Because the customer estimates the labor rates to various shops in nearby locations. Our biggest challenge is to adapt latest technology, while repair cost will minimum to our valuable customers.

  • Like 1
  • 1 month later...
ATSAutomotive Collaborator

ATSAutomotive

Posted
Posted

We do not price match, I didn't pull a number out of a hat to put on an estimate.  My estimate is specifically designed based on my needs.  Parts are marked up according to what I need to be profitable, same with my labor rate.  If your looking for the best price in town, I am not it.  I am a professional and I want you to come to my business because of the service we provide, not because of my prices.  Also why are you guys not making any money on tires??? Marked up 43% for 30% profit.  I am not a tire store, I am only going to install tires if I am making money.  Let the tire stores whip tires in and out.  We have a diagnostic and repair work to do. 

I would like to say I think some owners need to slow down in their day.  Being busy is just an illusion of being profitable.  Bust in to your books and build your prices based on what you need.

  • Like 2

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  • Have you checked out Joe's Latest Blog?

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      The Toolbox is Last to Leave, First is the Heart
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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.

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