Quantcast
Jump to content

Recommended Posts

Posted

I am not sure if this question will apply well to this forum but maybe someone can point me in a direction to get some advice.

 

I own a performance shop in Boise, we cater to high end vehicles which we upgrade and customize.

My question is, we run into instances in which we have recommended a part or parts to be installed on a vehicle that turn out to be faulty and or don't fit as advertised. While we are used to the fact that 'bolt-on' is a loosely used term and adjustments always need to made, when we spec a part, then install it and it fails prematurely I find it hard to decide how to charge to fix said part.

Most times the vendor/manufacturer will honor warranty on the part and replace it. But, how to charge for the diagnosis and re-re?

I feel in order to maintain a good reputation that the proper thing to do is not charge labor on the repair but, unfortunately this is not an uncommon problem in the performance world. As such it can get to be a financial burden.

 

Thanks,

Rory



Posted

I am not sure if this question will apply well to this forum but maybe someone can point me in a direction to get some advice.

 

I own a performance shop in Boise, we cater to high end vehicles which we upgrade and customize.

My question is, we run into instances in which we have recommended a part or parts to be installed on a vehicle that turn out to be faulty and or don't fit as advertised. While we are used to the fact that 'bolt-on' is a loosely used term and adjustments always need to made, when we spec a part, then install it and it fails prematurely I find it hard to decide how to charge to fix said part.

Most times the vendor/manufacturer will honor warranty on the part and replace it. But, how to charge for the diagnosis and re-re?

I feel in order to maintain a good reputation that the proper thing to do is not charge labor on the repair but, unfortunately this is not an uncommon problem in the performance world. As such it can get to be a financial burden.  

 

Thanks,

Rory

Rory,

We dont warranty performance work with a written warranty. If something happens within say 6 month or so we'll stand behind it and address any issues but often manufacturers won't stand behind it. You should have the discussion with the customers that modifying a vehicle beyond stock parameters can cause issues and different effects on other systems and while your technicians are highly trained in addressing these issues it would be financially irresponsible to offer a long term warranty. Or increase your gpm to cover multiple replacements or repairs that are related. Or offer a 30 day basic warranty and a couple "extended service packages" for a percentage of the job that covers a failure.Posted Image That I've found no insurance company cover performance modifications in their basic garage keepers policy which is something to keep in mind.

The picture may be hard to read and I'll post the actual wording later. Our policy is a good faith policy that we'll stand behind our work but theres no actual waeranty. We've had to many folks come in 6 months later with big wheels and tires, programmers etc and a blown headgasket or blow motor and expect us to warranty it. Typically the modified vehicles we see are abused heavily I cant warranty abuse and I can't acuse them of abuse so my policy is in place to protect us.

Sent from my SCH-I605 using Tapatalk 2

 

 

Posted

ncautoshop,

 

Thanks for the reply. I like your approach.

 

Here is a scenario that we ran into a while back, can you give me your thoughts?

 

We installed a turbo kit from a vendor which we have been a dealer for about 10 years.

After negotiating a reasonable labor cost (vendor states 8 hour install, have done many, many of these, no way it can be done in 8 hours) we installed the kit which fit well. When we ran it on our dyno it resulted in only a 38hp increase. Obviously, this wasn't the desired outcome, we verified our install work then began the long drawn out (4 hours total) phone calls to the tech line.

In order to convince the vendor it was a tune problem with their ecu reflash we ran the car multiple time on the dyno and gathered much data. Finally (4 hours on the phone, 2 hours on the dyno) they agreed that it must be the tune and reflashed it for us.

After re-installing the ecu the car made a 130hp gain over stock but we were stuck with a 26 hour investment on our part, a customer that had waited to long for his car that was expecting a bill for 14 hours.

My biggest issue is WE suggested this vendor based on years of using their products without issue.

We decided to cut our losses and honor our 14 hour estimate.

 

Any suggestions?

 

Thanks,

Rory

Posted

ncautoshop,

 

 Thanks for the reply. I like your approach. 

 

Here is a scenario that we ran into a while back, can you give me your thoughts?

 

We installed a turbo kit from a vendor which we have been a dealer for about 10 years.

After negotiating a reasonable labor cost (vendor states 8 hour install, have done many, many of these, no way it can be done in 8 hours) we installed the kit which fit well. When we ran it on our dyno it resulted in only a 38hp increase. Obviously, this wasn't the desired outcome, we verified our install work then began the long drawn out (4 hours total) phone calls to the tech line.

In order to convince the vendor it was a tune problem with their ecu reflash we ran the car multiple time on the dyno and gathered much data. Finally (4 hours on the phone, 2 hours on the dyno) they agreed that it must be the tune and reflashed it for us. 

After re-installing the ecu the car made a 130hp gain over stock but we were stuck with a 26 hour investment on our part, a customer that had waited to long for his car that was expecting a bill for 14 hours.

My biggest issue is WE suggested this vendor based on years of using their products without issue.

We decided to cut our losses and honor our 14 hour estimate.

 

Any suggestions?

 

Thanks,

Rory

Its important to have good lines of communication and disclaimers in these cases. I see both sides and situations like these nearly put me out of business.

A: the customer doesnt want to.spend a dimenmore than they have too.

B: the business CANNOT be profitable giving that much work away.

 

I saw three options

1: disclaim on signed estimates/ro's that the bill may increase by no more than a locked percentage, this gives the customer a idea possibilities before okaying the job. It also gives you a guideline that hour wise you cant exceed without reevaluation of the job with the customer. 50% is what I had considered.

2: Bill hourly: explain to the customer that the manufacturer suggest 10 hours yet tuning or other problems may arrise which you can't control! In this instance you will be billed hourly (possibly at a discounted rate) until customer satisfaction is reached. Maybe have a limit at which you call and consult the customer.

3: Stop performance work. While its a profitable business the customers often "know everything about their car". They can be a real PITA. Often insurance coverage issues, clientel etc push performance shops to just repair work.

 

 

The key I feel is communication with the customer. Everyone expects the bill to be locked down and with custom work it cant be locked down. Vehicle manufacturers spend hundreds if not thousands of hours of r&d to make the componets all work as a single unit. Some say that those doing the r&d are some of the most skilled engineers in the world. (ive seen some things that make me question that lol)

In the performance market less time is spent, less resources, less financial backing, less testing. Not to mention we're modifying vehicles beyond intended parameters. So when performing these modifications its not straight foward as replacing a starter.

For instance the tuners for the diesels may require multiple updates, some manufactures tried to build a one size fits all tuner which led to us fighting a tuner that was a special order that we intended to update and be done taking hours to update then the manufacturer saying "sorry, that tuner wont work on that truck. We dont know why". We had hours in something that no labor was quoted. The part had minimal markup because the customer could already buy it online for $100 less than our price. Ended up with frustration for everyone involed and me paying shipping. Lost a customer.

Had I set the customer up for those possibilities we likely wouldnt have had any issues amd might have recooped atleast some of that time and financial loss.

I know my ideas may not be the solution to your problem however it was the only things I could come up with. We still do a little I performance work but mostly chose #3.

I'd love to be part of the brainstorming process on this to help me and you both.

 

Sent from my SCH-I605 using Tapatalk 2

 

 

Posted

It is very difficult to be profitable and do performance work. Let alone find a vendor that will back you for anything more than that part if something does go wrong. We choose to stay away from this type of work because of so many jobs that have gone bad. There needs to be clear communication with the customer that "anything can happen" and that additional parts and labor may be required to make this upgrade work. I would also say that there should be no warranty on performance work.

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 Changing The Industry
      Two Shop Owners React: PartsTech's Industry Survey for 2025
    • By carmcapriotto
      Thanks to our partners, NAPA TRACS and Promotive
      Closing your shop on Saturdays might sound like a risky move, but could it actually improve your business? In this episode of Business by the Numbers, Hunt Demarest, CPA, explores the real financial and operational impact of shutting down on Saturdays. Is it worth it? What factors should you consider before making the switch? Whether you're thinking about a 5-day workweek, reducing hours, or making strategic changes to your shop’s schedule, this episode is packed with insights to help you make an informed decision.
      Key Topics Covered:
      ✅ Why auto repair shops are moving away from Saturday hours
      ✅ The financial impact of closing on Saturdays—and how to make up for lost sales
      ✅ How to determine if your shop can afford fewer workdays
      ✅ The role of employee preferences in business hours
      ✅ Attracting top talent by offering a 5-day workweek
      ✅ Strategies to transition customers from weekend scheduling
      ✅ Real-life case studies of shops that successfully cut their Saturday hours
      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 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 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 nptrb

      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.



  • Our Sponsors

×
×
  • Create New...