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When you match price, do you also match value?


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Excellent post and definitely something we should all keep in mind. Especially on those days when all the phone calls and walk in customers tell us how much cheaper the shop down the street is.

 

You know, the one with the gravel lot, broken door windows and the cars sitting on jackstands (in the gravel lot) getting worked on. Not to mention getting Autozone parts and selling them at cost to the customer or letting the customer be the parts delivery driver.

 

I'm sorry I can't compete with them on price, nor would I want to. What I can offer you is a complimentary shuttle service, a comfortable waiting area, ASE Certified Technicians and an excellent nationwide warranty. Not to mention quality parts and no hassle service.

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A sales man at a local dealership bought a Jeep Wrangler that was traded in. We do a lot of aftermarket work for these guys so he comes looking for a deal on a lift kit. Not just any kit, but a high dollar long arm kit that require a lot of cutting and welding to the frame and axle.

 

Long story short he bought the kit on line to save tax but freight cost him more than purchasing from me. These are solid steel control arms front and rear. Plus the rest of the components.

 

He shows up yesterday looking for help. The kit was installed in his buddy's garage for half of what I would charge. "Something happened to the rear axle." he says " So we put a new one in and its doing the same thing. I've had it a few months now and can't really drive it" It was an obvious hack job and the pinion angle was way out. "Can you tell me what wrong?" he asked. "Yes, you went to the wrong place. But for $600 I can fix it."

 

We looked at some other custom work I had done. Now he could see a night and day difference in the quality of work. Between the freight cost, the axle he did not need, and the additional labor for me to fix it. Lets just say lesson learned. He's scheduled after Xmas.

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Great post, and a great reminder that this is a service business. We can not let the conversation devolve into a price war. Educate your clients and let them decide if they appreciate value, and the experience of having a go to shop. Quality is remembered LONG after price is forgotten. The experience cdhowell shared is typical of "saving money". The guy with the Jeep will have spent more by the time his vehicle is done correctly than he would have spent by simply having it done professionally. xrac's story is equally telling. Years ago I was managing a tire & repair shop having a similar problem with a few local "price cutter" shops in my area. I did a reader board sign that read "We fix $59.95 Brake Jobs". I got quite a few new clients that became loyal!!

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  • Have you checked out Joe's Latest Blog?

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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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