Pricing, Ethics And The Reputation Of Your Business – UnderhoodService

Pricing, Ethics And The Reputation Of Your Business

At Elite we know that once someone comes into your shop, you’ll do everything you can to generate a happy customer, and make a fair profit. Unfortunately, some customers will put you to the test when it comes to the prices you charge. They’ll tell you they can’t afford the recommended services, they’ll tell you they can get the same service done down the street for less, or they’ll just need you to knock a few bucks off the price. This is when you typically tell yourself that you’ve already invested a good amount of time and money to get the customer to this point in the sale, so rather than letting the customer walk, you drop your price a few bucks, and in your mind, you just saved a job. Unfortunately, what you just lost was your integrity, and the integrity of your pricing.

One of the things we teach in our sales courses is that there are a number of reasons a customer will ask you for a discount. They may very well be in a cash crunch, and as we all know, many cultures believe that you’re foolish if you don’t haggle over the price. But there’s yet another reason why people will ask you for a discount, and ironically it’s the one most shop owners, and service advisers, completely overlook. What those customers are doing, is testing your integrity. Look at it like this … You hire a plumber to do a job at your house, and they quote you at $800. You then ask them if that’s their best price, and within a few minutes they’re telling you they’ll knock $50 off the price. Regardless of whether or not you authorize the job, you’ll more than likely tell yourself that if you wouldn’t have asked, one thing is for certain: you would have paid $50 too much. You probably wouldn’t feel too good about that, would you? And then ask yourself this question: would you call that same plumber again? And if you did, what thought would pass through your mind when he gave you a quote on the next job he did for you? I think it’s safe to say that your confidence in the plumber, and the integrity of his pricing, would be gone. We also know many shop owners will inflate their prices when knowing they are dealing with a negotiator, and then will provide those customers with a supposed “discount.” So do this…rather than playing a shell game with your customers that will put you out of business, apply these powerful tips:

#1. Embrace the fact that it’s perfectly OK to offer legitimate discounts, such as senior discounts, police and fire department discounts, military discounts and promotional discounts.

#2. When a customer asks for a discount, look at their request as a buying signal. They are already sold on you and the recommended services! They are now either simply testing you for price integrity, or they are negotiators looking to get the best deal. Since they’re already sold on you, rather than lowering your price, look at their request as an opportunity for you to build even more interest and value in your recommended service, and to resell yourself at the same time.

#3. Rather than reducing your price, offer your customer something that brings an added value. For example, rather than lowering your price from $800 to $750, tell the customer that if they authorize the service, you’ll provide them with a voucher they can use for a complimentary oil service during their next visit. This way you don’t cheapen the value of your existing recommendation.

#4. If you feel for whatever reason you have to provide a concession in price, you should always take something off the table in return for the price reduction. Examples would be reducing the warranty on the repair, having your tech work on the vehicle when you are not as busy, etc. In all cases, if the customer pays less, they should get less. It’s called ethics.

Article written by Bob Cooper. For additional help building a more profitable, successful auto repair business, learn more about the industry acclaimed service adviser training offered through the Elite Masters Program.

You May Also Like

BendPak Founder Don Henthorn Passes Away

Grew company from small machine shop to global leader in car lifts and garage equipment.

Don Henthorn, owner and founder of BendPak Inc., peacefully passed away at home Thursday, March 28, at the age of 85. Under his leadership, BendPak has grown from a small machine shop to one of the world’s leading manufacturers of car lifts and automotive service equipment.

Management and operations of the privately owned company are unchanged. 

ASE Practice Tests Available Online

You can get a good idea of what to expect by adding the official ASE practice tests to your study plans.

AACF Celebrates 65 Years Serving the Aftermarket

AACF will be announcing more details about this commemorative fundraiser April 1st.

Bendix Releases Technical Materials for ADAS Support

They are designed to help technicians properly set up, inspect, and diagnose several components integrated with ADAS.

Dayco Adds Almost 30 Part Numbers in March

The 29 new part numbers will be available by the end of March for distributors interested in adding to their product coverage.

Other Posts

Child Labor for Repair Shops

This could be a chance to introduce teenagers to the auto care industry.

ASE Designates June as Automotive Service Professionals Month

ASE urges industry members to embrace Automotive Service Professionals Month as a platform for expressing gratitude.

ZF Aftermarket Releases 80 New Parts

The latest additions expand coverage to more than 5 million vehicles in operation.

Vehlo Acquires Shop Management Software, Shop-Ware

Shop-Ware is a cloud-based shop management platform catering to independent automotive aftermarket repair shops.