Would you price your services lower than the dealer?

[Joe Marconi]

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[FROGFINDER]

True story duplicated many times since 1969 . A person comes in and grills me about prices on the first visit so sometimes I play along. How much for a wheel alignment they ask $29.00 I respond. How much for a conventional oil change they ask, $9.99 I respond . They can't believe what they just heard, I ask them if they have been paying more elsewhere?

[5 Star Auto Spa]

I agree that you should not enter a price war but sometimes it is difficult for a business owner to lose business because you are "higher" priced than the dealer or a competitive independent repair shop. I do also agree that you have to show value and offer something that other shops do not offer that sets your business apart from other repair shops. This is key when pricing becomes an issue with customers.

[nmikmik]

  On 9/14/2013 at 3:37 PM, Joe Marconi said:

We often take a customer’s car to the dealer when we discover the vehicle is under warranty. We prefer to take it ourselves, because the dealers are like vultures and too often my customers come back with a ton of service work done, much of which we already performed! Plus, it's no secret that the dealer wants my customer.

 

Yesterday I took a Subaru with a warranty reprogramming recall back to the dealer and as I pulled into the service drive, there was a big sign that stated: We’ve Lowered our prices! Under the headline listed these services:

• Oil change service $19.95
• Wheel Alignment $59.95
• Tire rotation $9.95

These prices for my area are cheap. In fact, the average wheel alignment in my area is $89 to $129.

 

This is more proof that the dealers are trying everything they can to increase business in their service bays. My hope is that they price themselves out of business.

 

Now, will many shops lower their prices to match the dealer? I hope not. If the dealer wants to position their brand on price, let them. Do not enter in that "race to the bottom."

 

Remember, think of your best customers. You know, those people that never question price and throw the keys on the counter and say, "Call me when the car is done". These are the customers that you need to base your business on. These are also the customers that rarely question price.

 

I know that the last few years have been tough on everyone, but we still need to maintain who we are as a brand. Do the things that have made you a success.

 

And remember, your best customers don't continue to go to for your price. Recognize WHY they are loyal and build your business around that.

 

 

Thank you Joe & not surprising that dealer uses three most used "catchall" to bring the customer in.

I suspect we all know they will never make any money at these prices, nor will we. Nor, I am afraid, they will price themselves out of business because they will "upsell" a jibijibies (technical term) out all and any customer as soon as he comes in for $9.99. They also, unlike most of us, have multiple streams of income. So, even if they loose the service income for a few month, that I doubt they will, bust still, they have the used cars to "keep them afloat".

I also suspect that many shops will end up lowering their prices because people see something like that and in panic, the first "logical" thing that comes to mind is "Oh (*&%*&% I've got to follow the lead"

I'd be willing to put up a little comparison chart on my website (when I have one ) to run a comparison what will it cost the customer "on the bottom line" after a simple repair (in addition to any one of those services) and compare the value they will get from me compare to the dealer.

Value selling is not easy, that's why they call it selling and not "giving away" services....

[phynny]

I will never lower a price to match a dealer price. My techs are more skilled, my warranties are better and my customer service isn't even on the same planet at the "dealer."

[nmikmik]

Thank you!