I am not going to pile on, but I came from outside the industry and I have always believed that if 10-15% of your clients don't walk because "your price is too high" then you aren't priced high enough. We provide excellent service, and we don't have ANY technicians on staff who have less than 5 years experience in the automotive world. I HATE giving a quote prior to looking at a vehicle, and it's because every car is different. Are you recently relocated from NJ with your 5 year old chevy equinox? It's a rotbox, and I have the spend 3x the labor time to get your rusty crap apart? That should somehow be MY problem? Nope. I have a minimum annual increase, we have the highest labor rate in the area and I am fine with it. We provide service, above and beyond what that rate reflects, and my front office desk person and myself are full invested in the successes.
Above and beyond the reflection of the area, have you calculated your costs to reflect your profit levels required? I analyze about 2x a year what we need to be doing to provide for the services we offer, the employee satisfaction and for the best experience possible I want to make money. I want to reward my team for their efforts. I want to save some money for those short months... But I can't do all that if I am simply looking at my competition and determining what I will charge.