Quantcast
Jump to content


Recommended Posts

Posted

We've been encouraging each other to raise prices to meet our business profit needs on the Labor Rate thread and I mentioned oil change pricing being more commoditized.   I was really afraid of changing my basic oil pricing.   Well, we made a big change yesterday and I'm nervously watching the reactions.

In my mind, when gas hits $3/gallon is the time to raise prices, which in Texas is a pretty recent event.   It happened, but there was little overall noise, so I sheepishly waited.   Thursday night I go to bed, thinking nothing of this.  Friday I wake up, watching the news and it dawned on me that the news cycle was all about inflation.  It was the RIGHT TIME to act!!!   (In truth, it likely was the wrong time because the right time was long ago, but I digress).    So, I did an area pricing survey and found that I was priced in the bottom 40% of the field.  I was actually late to act.   Starting on Saturday, we've raised our prices about 25%.    I know some of the other shops are also planning price increases, but we are now priced in the top 20% instead of the bottom 40%.

We've not had anyone walk out due to pricing.   We've had but 1 grumble so far.   We will get some pushback eventually, but I was really surprised that it was not immediate.  Shame on me for not acting sooner.

Now, back in August 2021, we did raise prices on our European Oils and received almost zero pushback.   But, this was expected.  They are thrilled to get such a bargain compared to the dealer.    In some instances, I'm actually higher than the dealer.  In most cases we are maybe 25-40% less.

I remain nervous because we might see silent pushback... that is, they pay this time, but seek someone else for next time.   I do believe that the rest of the market will be moving soon, so the search for yesterday's prices might be futile.

  • Like 1
  • 3 weeks later...
Posted

Well, I'll have to say that this has gone both good and bad.   I'm going to explain what I expected and what I'm seeing.    I'm partially surprised... in a good way.

With this being an often used service, it's possible that folks remembered what they paid the last time.    Right now, for each customer, we are quoting the price for the service before starting.  We solicit a positive affirmation.    We don't quote the price for repeats that are not experiencing a price change as we've always done.    We are not explicitly calling out the price increase.    If a customer comments, then we have that conversation.    Our repeat customers are saying ok.   I don't think anyone has walked over it.  They may or may not return for the next visit, so it's TBD.

I really expected an Indian Revolt.  We have a lot of Indian customers who appear to be price sensitive, but most are not reacting.   As a group, they tend to negotiate the most, but I've learned that they were often cheated in their home country, so they do value honesty.  But the old ways of haggling seem to be hard to shake.

Many customers, both old and new, simply say ok.   No reaction to the pricing at all.   I expected more reactions from new customers, but this has not materialized.   Having said this, we are seeing a increase in the number of "no thanks" abandonments.   1-2 weekly has moved up to 1-3.  Much smaller than I feared. 

But, we get lots of phone calls asking about price before arriving and with these, I believe that we are taking a hit, but it's a gut feeling only.   Are they price shopping, or planning their budget for the month?  You can't tell.   We know that some do come after this call.  Until the local market pricing stabilizing, I'll be losing all price shoppers, which is ok.   We weren't the lowest to begin with and still aren't.

I send out post service surveys and did get one back from a fellow that said:  "You don't need to make 80 dollars on a 15 minute change."  (his analysis on my costs)  He's a VW owner and my VW guys don't always realize that they are driving Euro vehicles.   He did not do the service.   In the same note, he said:  "I want to come here for things because everyone is friendly and knowledgeable but I can't pay $$$ ..."    There's the catch... what kind of service do I want?

In the end, it was the right thing to do. Timing was good, but my have been ok sooner.  At least, we have a scapegoat in the news.  May need to do it again sooner than I expected with this inflation.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Available Subscriptions

  • Have you checked out Joe's Latest Blog?

         0 comments
      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.
  • Similar Topics

    • By carmcapriotto
      Thanks to our partners, NAPA TRACS and Promotive
      Tariffs might sound like a foreign concept—until they hit home. In this episode of Business by the Numbers, Hunt breaks down the real-world impact tariffs can have on your auto repair shop, using a powerful shop-vs-shop analogy to explain rising costs, disappearing jobs, and economic ripple effects. Whether you're in the weeds of part pricing or just trying to make sense of the news, this episode gives you the context you need.
      Here’s what you’ll learn in this episode:
      Why tariffs are making headlines—and how they could impact part costs in your shop What the “free market” really looks like when safety and environmental regulations aren’t equal The economic chain reaction that can crush local businesses and communities How tariffs influence pricing, profits, and technician availability in the long term A breakdown of how the U.S. tax system evolved from tariffs to income taxes—and why that matters now
      Thanks to our partner, NAPA TRACS
      Did you know that NAPA TRACS has onsite training plus six days a week support?
      It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.
      Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com
      Thanks to our partner, Promotive
      It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
      Paar Melis and Associates – Accountants Specializing in Automotive Repair
      Visit us Online: www.paarmelis.com
      Email Hunt: [email protected]
      Text Paar Melis @ 301-307-5413
      Download a Copy of My Books Here:
      Wrenches to Write-Offs Your Perfect Shop 
      The Aftermarket Radio Network: https://aftermarketradionetwork.com/
      Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/
      Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/
      Business by the Numbers with Hunt Demarest https://huntdemarest.captivate.fm/
      The Auto Repair Marketing Podcast with Kim and Brian Walker https://autorepairmarketing.captivate.fm/
      The Weekly Blitz with Chris Cotton https://chriscotton.captivate.fm/
      Speak Up! Effective Communication with Craig O'Neill https://craigoneill.captivate.fm/
      Click to go to the Podcast on Remarkable Results Radio
    • By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By JustTheBest

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By carmcapriotto
      Thanks to our partners, NAPA TRACS and Promotive
      What if your auto repair shop is losing money every single day — and you don’t even know it? In this episode, Hunt sits down with Alex Saladna, CEO of Wicked File, to talk about the hidden financial leaks happening in shops just like yours and how AI is helping owners plug those holes fast. From missed parts and uncredited returns to unauthorized purchases, we dive deep into how real shop owners are using Wicked File to save thousands of dollars and hundreds of hours every month.
      Whether you're a single-location shop or managing multiple rooftops, this episode shows you why "doing it manually" might be costing you way more than you think.
      Alex Saladna, WickedFile
      In this Episode, you'll learn: 
      How Alex's family-owned shop lost $180,000 in just 6 months — and what sparked the creation of Wicked File The real financial leaks you're probably missing — and why statement reconciliation isn’t enough Why even large, well-staffed shops fall behind on parts reconciliation How AI-powered tools like Navigator help shop owners instantly spot problems and improve profitability What one multi-shop owner did to increase net profit by 15% in just one month
      Thanks to our partners, NAPA TRACS and Promotive
      Thanks to our partner, NAPA TRACS
      Did you know that NAPA TRACS has onsite training plus six days a week support?
      It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.
      Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com
      Thanks to our partner, Promotive
      It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
      Paar Melis and Associates – Accountants Specializing in Automotive Repair
      Visit us Online: www.paarmelis.com
      Email Hunt: [email protected]
      Text Paar Melis @ 301-307-5413
      Download a Copy of My Books Here:
      Wrenches to Write-Offs Your Perfect Shop 
      The Aftermarket Radio Network: https://aftermarketradionetwork.com/
      Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/
      Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/
      Business by the Numbers with Hunt Demarest https://huntdemarest.captivate.fm/
      The Auto Repair Marketing Podcast with Kim and Brian Walker https://autorepairmarketing.captivate.fm/
      The Weekly Blitz with Chris Cotton https://chriscotton.captivate.fm/
      Speak Up! Effective Communication with Craig O'Neill https://craigoneill.captivate.fm/
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
      Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo: https://shopmarketingpros.com/chris/
      Check out their podcast here: https://autorepairmarketing.captivate.fm/
      If you would like to join their private facebook group go here: https://www.facebook.com/groups/autorepairmarketingmastermind
      SHOW NOTES
      Throughout the episode, Coach Chris covers a range of pivotal topics that are crucial for business growth and sustainability. He discusses the potential benefits of real estate investments, drawing parallels to the Monopoly board where acquiring properties can lead to increased revenue and long-term financial gains. Additionally, he explores the concept of financial diversification, encouraging shop owners to explore various avenues for generating income beyond their core services.
      A significant portion of the discussion is dedicated to the value of forming strategic partnerships and investing in employee development. Coach Chris emphasizes that nurturing relationships with other businesses and fostering a skilled workforce can lead to enhanced service offerings and a competitive edge in the market. He also highlights the critical role of cash flow management, advising shop owners on how to maintain a healthy financial status that supports both day-to-day operations and future growth initiatives.
      Strategic expansion is another key theme, with Coach Chris providing insights on how to scale operations thoughtfully and sustainably. By aligning expansion efforts with clearly defined business objectives, shop owners can achieve financial stability and set the stage for long-term success.
      Introduction and Overview (00:00:09)
      Coach Chris Cotton introduces the podcast and its focus on auto repair business strategies.
      Monopoly Metaphor (00:01:05)
      Chris uses Monopoly to illustrate strategic business management and growth opportunities for shop owners.
      Defining Your Business Size (00:02:03)
      Discussion on ambitions regarding the size of the business—local, regional, or national expansion goals.
      Opportunities for Growth (00:03:12)
      Encouragement to view business opportunities as "squares" on a Monopoly board, representing growth potential.
      Real Estate Investments (00:04:25)
      The benefits of owning property, including passive income and stability for the auto repair business.
      Diversification of Income Streams (00:05:28)
      Exploration of additional income sources like storage facilities and rental properties to enhance financial security.
      Financial Investments (00:06:41)
      Importance of stocks and retirement accounts for long-term financial growth and stability beyond the auto industry.
      Flexibility in Business Strategy (00:07:58)
      The need for adaptability in response to unexpected challenges and opportunities in the business landscape.
      Strategic Partnerships (00:08:41)
      Value of collaborations with suppliers and other businesses to create growth opportunities and enhance profitability.
      Employee Development (00:09:04)
      Investing in team training and development as a critical factor for business success and employee retention.
      Connect with Chris: chris autofixsos.com
       Phone: 940.400.1008
       www.autoshopcoaching.com
       Facebook: https://www.facebook.com/ 
      AutoFixAutoShopCo
       Connect with Chris: chris autofixsos.com Phone: 940.400.1008 www.autoshopcoaching.com Facebook: https://www.facebook.com/ AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae 
      www.autoshopcoaching.com 
      Facebook: https://www.facebook.com/ AutoFixAutoShopCoaching
      Youtube: https://bit.ly/3ClX0ae
      The Aftermarket Radio Network
      Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion
      Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life.
      The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level.
      The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching.
      Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest.
      Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size.
      To listen to more episodes, make sure and go over to iTunes and or Spotify.
      Don't forget to rate and review us!
      Connect with Chris:
      AutoFix-Auto Shop Coaching
      www.autoshopcoaching.com
      www.aftermarketradionetwork.com
      #autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix #shopmarketingpros #autofixautoshopcoachingbook
      Click to go to the Podcast on Remarkable Results Radio


  • Our Sponsors



×
×
  • Create New...