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Story you guys might like from 2 friends!

mspecperformance
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mspecperformance Mentor

mspecperformance

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I have been talking about this since last night still trying to wrap my mind around it...

 

 

So I have 2 friends, 1 that owns a shop (SUPER mismanaged) and another friend that needed work done on his 1994 Toyota MR2. They both do not know each other. The MR2 was brought over to the shop 2+ years ago. My shop owner friend was hired to partially build an engine, transmission, modify the trunk to fit an intercooler and install the engine. The last piece of the puzzle was creating a wiring harness for an aftermarket engine management. Yes I know all work we cringe and turn away! Anyway, for one reason or another the car say for 2+ years waiting on parts at times or various other reasons. At no point was any price established. Recently the shop owner friend called it quits on the car said he couldn't finish the harness and he really needed the space (3 bay shop, 1 car taking a whole bay for 2 years). My MR2 friend went to pick up the car and all the while kept asking "do you have a price for me?" The response he got was, "Oh most of it is in storage fees." Keep in mind at no point was any price established. Well the car was released to the owner and towed out of the shop. After asking multiple times the bill was finally presented.... $12,500! Now I am sure the work was painstaking and took a ton of hours but how do you charge someone that kind of money without ever establishing any sort of pricing? Also you let the car go losing all your leverage! I don't know what the outcome will be but I just can't wrap my mind around how it got this far and how you can justify trying to charge $12,500 without ever establishing any pricing. Keep in mind, no paperwork was ever drawn up, nothing was ever signed, no verbal agreement was ever presented or reached.

 

I'd love to hear some comments, I am trying to not get involved but I can't stop thinking about what a shitshow this is.

ncautoshop Proficient

ncautoshop

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What a nightmare. Looks like shop owner buddy is going to be looking for work soon. You hiring? Lol.

That's a real mess. One of the key reasons we stepped out of performance and custom work, the customer has his idea of what it's worth and the shop has their idea of the worth of the job. Neither are ever close. The shop always wants more and the vehicle owner always thinks it should be a "couple hundred".

 

Sent from my SCH-I605 using Tapatalk

 

 

mspecperformance Mentor

mspecperformance

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The sad part is the guy works 10-10 Monday - Saturday all by himself 3 lifts. He works Sundays I think until 5 or 7. Been doing it for nearly 10 years or around there. Charges well below the average labor rate (last time I think it was $65) in Queens which is a borough of NYC. He also doesn't charge enough margins on parts as well as allows customers to bring their own parts. There is also a auto parts store on the corner where I've seen customers walk to the parts store and come back with a starter with my friend having no objections. Hes put 2 kids through private school by doing this but I have to imagine hes living on a shoe string.

 

Both are my friends so its a tough thing to give any advice out however being a shop owner (and a logical human being) I can say without a doubt my shop owner friend Effffff'd up big time by not establishing pricing and allowing the car to be released without getting payment.

mspecperformance Mentor

mspecperformance

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You shop owner friend may know cars but he doesn't have a clue about running a business. He needs to have some business management training. $65 and hour in Queens when we are $87 in Indiana.

 

Tried to tell him many times...

mspecperformance Mentor

mspecperformance

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Hit the nail on the head Joe.

 

You have to recognize when you need help and also where to seek it. I have offered to pay for a 1 day class just to open his eyes on the possibility. He and his wife are wrapped up that they don't even feel like they can give up a day to go to the class!

 

Its a sad story.

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    • Joe Marconi
      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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