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Customer questions labor hours charged

CAautogroup
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CAautogroup Collaborator

CAautogroup

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Hello all,

 

We recently had a customer question the amount of hours charged to install a part. The customer insisted that we follow what the "book" calls for and nothing more. When we tried to explain to the customer that the book is not always 100% correct on labor hours. He then questioned our expertise in the field stating that he has a "bunch of amateurs working on his vehicle". Wow, really?

 

Its somewhat unpredictable if a bolt will break off, needs to be retread/retapped,or any additional parts that need to be replaced.

 

 

How would you handle a customer like this?

ncautoshop Proficient

ncautoshop

Posted
Posted

I show them repair pal and I'm typically in the middle. Then ask if he'd like me to charge book for installing light bulbs and doing his oil changes? Chances are he's just trying to see what he can get away with. We always give an estimate up front and contact the customer immediately if things appear to be going south. We explain that due to the corrosion or issues found additional time will be required and if they like we could show them the problem prior to making a call. Typically this reinforces that we're honest and won't be shaken by their complaints. We rarely hear anything else about it. If they come in and start out by saying things like "that's to high" or " how do you bill" my efforts with keeping the customer instantly stop. Just explain that we offer a service and warranty which is second to none, and politely explain that the price is the price. We also have a sign on the wall that disclaims that additional labor charges are possible and may be encountered and that they'll be advised prior to the additional charges.

 

Sent from my SCH-I605 using Tapatalk

 

 

  • Like 1
Mario Collaborator

Mario

Posted
Posted

Don't quote in labor hours. Just quote a price. Quoting hours is a lose-lose. When I work up my quotes I always turn them on the hi-side of hours. That way in can absorb rust issues which happen on 80% of jobs in northeast ohio. It saves me from having to call the customer and adjust the estimate which they hate.

 

Example I did 3.1l gm headgaskrt job last week. I think book was around 12 hours I quoted 14. I had two broken exhaust studs. No big deal, already worked in the price before I even knew about it. No changing if estimate (which they all see as dishonest). Every party is happy.

flacvabeach Community Regular

flacvabeach

Posted
Posted

We tend to spend way too much time on the oddball customer who wants to prove something or start a fight. Think about all the great customers you had last week that had confidence in you processes and abilities and believed in the value you are marketing. They came and went and they will tell people they got great service at your shop. I know we have to deal with the grouches with an axe to grind, but concentrate on the good guys who appreciate what you and your staff do.

  • Like 3
mmotley Proficient

mmotley

Posted
Posted

Hello all,

 

We recently had a customer question the amount of hours charged to install a part. The customer insisted that we follow what the "book" calls for and nothing more. When we tried to explain to the customer that the book is not always 100% correct on labor hours. He then questioned our expertise in the field stating that he has a "bunch of amateurs working on his vehicle". Wow, really?

 

Its somewhat unpredictable if a bolt will break off, needs to be retread/retapped,or any additional parts that need to be replaced.

 

 

How would you handle a customer like this?

Did you quote more than the book calls for? If so, why?

mspecperformance Mentor

mspecperformance

Posted
Posted

We tend to spend way too much time on the oddball customer who wants to prove something or start a fight. Think about all the great customers you had last week that had confidence in you processes and abilities and believed in the value you are marketing. They came and went and they will tell people they got great service at your shop. I know we have to deal with the grouches with an axe to grind, but concentrate on the good guys who appreciate what you and your staff do.

 

These are the types that tend to ruin my day because I dwell on the negative (character flaw!). Thanks for this post!

  • Like 1
mspecperformance Mentor

mspecperformance

Posted
Posted

Did you quote more than the book calls for? If so, why?

 

I am not the OP however my opinion on this and from what I've learned from seasoned vets with great shops is that the original labor guide was built by by Henry Ford to stabilize his costs for warranty work. Labor guides are made for vehicles that are new with no rust, damage or modification issues. They do not account for broken bolts, worn out hardware, customer's stereo systems, choppy modified wiring harnesses etc etc. There are so many variations in labor guides as well. They are what they are, a GUIDE and not a standard every shop should be judged by. Your price quote also includes other factors such as your warranty. There is a reason why many shop management systems allow for labor matrix or some sort of modification to the labor guide percentages. Thats my 2c.

  • Like 1
ncautoshop Proficient

ncautoshop

Posted
Posted

The customer simply questioned why we "finished the job too fast" compared to what we charged him.

Did your guys spend adequate time on a test drive verifying the repair? Unless you marked it up a few hours we typically consume most of the book time left in paperwork, verifying the repair and test drive.

 

Sent from my SCH-I605 using Tapatalk

 

 

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
      By Joe Marconi in Joe's 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.

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      In addition to discussing financial performance, the episode also promotes Shop Marketing Pros, a specialized marketing company dedicated to serving auto repair shops. Shop Marketing Pros offers tailored marketing solutions designed to help shop owners attract more customers and build a strong brand presence in their local markets.
      Listeners of this episode will gain valuable insights into the financial aspects of running an auto repair shop and learn strategies to boost their business's performance. Coach Chris's expert advice, combined with the resources provided by Shop Marketing Pros, equips shop owners with the tools they need to thrive in a competitive industry.
      Introduction to the Episode (00:00:08)
      Coach Chris Cotton introduces the podcast and its purpose to supercharge auto repair businesses.
      Overview of Ratchet & Wrench Magazine (00:01:04)
      Discussion on insights from the January edition of Ratchet & Wrench magazine regarding shop performance.
      15-Year Industry Comparison (00:02:15)
      Chris highlights changes in annual revenue and profit margins in the auto repair industry over 15 years.
      Importance of Tracking KPIs (00:03:15)
      Emphasis on the significance of key performance indicators for making informed financial decisions.
      KPI Awareness Among Shop Owners (00:04:20)
      Chris shares his experience teaching shop owners about KPIs, revealing a lack of awareness.
      Current Revenue Statistics (00:05:20)
      Over 50% of surveyed shops now report annual revenues exceeding $1 million, a significant increase from 15 years ago.
      Gross Profit Margin Insights (00:06:18)
      Discussion on gross profit margins, with over 50% of shops reporting margins above 50%.
      Revenue Breakdown of Surveyed Shops (00:07:17)
      Detailed statistics on revenue ranges among surveyed shops, highlighting growth trends.
      Industry Consolidation Factors (00:09:35)
      Analysis of industry consolidation and growth potential as more shops exceed $25 million in revenue.
      Gross Profit Margin Categories (00:10:49)
      Breakdown of gross profit margins among surveyed shops, with insights on profitability levels.
      Net Profit Margin Overview (00:12:59)
      Discussion on net profit margins, noting a concerning percentage of shops not generating profit.
      Encouragement for Improvement (00:14:07)
      Chris encourages shop owners to make small tweaks for improved profitability and performance.
      Tracking and Measuring KPIs (00:16:12)
      Final thoughts on the importance of tracking KPIs and using data to drive business improvements.
      Connect with Chris:
      [email protected]
      Phone: 940.400.1008
      www.autoshopcoaching.com
      Facebook: https://www.facebook.com/
      AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
      #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


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