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Pricing, Ethics and the Reputation of Your Business

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By Bob Cooper

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 as to why people will ask you for a discount, and ironically it’s the one most shop owners, and service advisors, 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 $800.00. You then ask them if that’s their best price, and within a few minutes they’re telling you they’ll knock $50.00 off the price. Regardless as to 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 $50.00 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 this powerful strategy:

#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.  As an example, rather than lowering your price from $800.00 to $750.00, tell the customer 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.

For more tips on how to create a more profitable, successful business from Elite Worldwide President Bob Cooper, visit the Elite website at www.EliteWorldwideStore.com.

$180k as a Repair Technician – Myth or Truth?

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After reading your article I completely agree with you. Higher end repair facilities are looking for qualified repair technicians. When they see a younger individual, who has dedicated their time and money to learning a specific trade, they see more potential and ability that they can have on their shop floor. They will be more willing to pay more for an educated technician, because of the educational value that you will be bringing to the whole company. It is simple economics, The “Opportunity Cost” that you have invested in yourself, raises your gross value as an individual, allowing the employer to be able to pay you more because over an elastic portion of time, you will also educate the shop you work in. Knowledge is contagious, and the method of heating and beating, caving and paving are long gone. Technicians with knowledge of metalogy, OEM procedures, and proper repair techniques are needed, and the industry as a whole are searching for these individuals.

As the industry is progressing, the cars are becoming extremely complex. The best advice that I can give is become specialized. Look for companies that offer certification programs with specific manufactures, or certify in advanced materials such as Aluminum or bonding and riveting advanced technology. The sooner you get involved in this material, the more experience you can gain through it.

The income level that was mentioned by Donnie is a reasonable average ( $52,000 ). But I have also come across multiple technicians and painters from all over that country that have earning levels up to $180,000. Yes that sounds like a myth, but extremely possible if you get involved in the right programs and right shops. You should not get tunnel vision and only concentrate on one manufacture, because this will only hurt you in the long run. Also, don’t expect this type of pay straight out of college chair.

If anyone is interested in pursuing OEM training or advanced training programs please don’t afraid to contact me. I am more than willing to point you in the right direction.