Hack price wars

[scratchy]

2 years ago hacks were charging $35-40 for single chips, now they are down to $20-25. How low does is have to go before they stay home for good?

[GlassStarz]

Ther is plenty of work for everyone I charge some commercial clients $20-25 and have done quite a few personal cars at the comercial site(employees) for $20 a good salesman never turns down a deal just makes the money and moves on to the next customer worry less about how much others make and more about how much you make. PMA!!!!!!!!!!!!

[StarQuest]

Scratchy,

Just some info for you. All the major rental car locations in my area will only pay $20-25 for repairs, and that includes multiples hits free of charge. I have freinds that work airports at that fee and still make $300-$500 a day. I only wish I had one! It's all about volume. When turnback time comes they may even double that amount. Would you turn down those kind of profits? I wouldn't! As far as dealership accounts I try to stay at $30 but sometimes need to start at $25 just to get my foot in the door. Cash customers in this area will seldom pay over $25 for a repair. It's always your choice on what to ask for but you have to keep in mind you will always have competition. If your market area will produce jobs at $35-$40 then I think that's great. If not, you'll have too adjust.

[scratchy]

You know what. You guys are great, always looking on the bright side. I push the insurance route first with everyone possible so they can leave without any cash out of pocket. When that doesn't work I size up the customer and the vehicle trying to be fair to them and myself. Almost all the time it works. I just think the hacks are slowly doing themselves in by giving themselves the only reason to exist is they are $5-10 less than a real shop now that they have competition. They were socking it to everybody not too long ago and where are they now? Watching their daily take drop like a stone.
I am going to be buying my resin and drill bits in bulk very soon and my cost per job is going to be next to nothing. I won't be losing anything no matter what the price of the job is going for within reason of course.
Customers do get confused though and seeing someone pull up to a hack with a $45,000 car is a shame for the vehicle.
This seems to be only the case for single chip customers. Multiple chips and cracks don't have much of a haggle to them.

[mafsu]

Scatchy,
Starquest pretty much described me to a tee. I also do insurance and dealer work and when turnbacks get busy the numbers Starquest posted can not only double but quadruple. Be a little more objective in your description of a hack.

[paintlessplus]

I've struggled with cash pricing and think it's a matter of personal choice. I haven't went after fleet/dealer work, as I got burned out on it when I was in the body shop business years ago. I did count chips last Sunday while car shopping at a dealership ( No salesmen working on Sun.) and found nine cars with chips. I think volume accounts and repeat customers deserve a price break, but beware of a dealer who will call you up to fix one chip real quick so it can be delivered to the customer and then only want to pay $20. Also with retail customers, I have a set price and stick to it. If you go too low they won't use their insurance. When you act like your sizing them up for a price quote, most people will size you up for a counter offer. Go with what the market will tolerate- I remember reading a quote from Sam Walton (Walmart)
Sell to the rich- live with the masses.
Sell to the masses- live with the rich.

Bob/ Paintless Plus

[CPR]

I look at it this way, if a dealer wants to pay 25.00 and has say 10 cars for me to work on I'm doing ok. That 250.00 paycheck is alot more than I would ever make working for someone else, done in 4-5 hours to boot.

[thedentdude]

I agree with CPR. I look at it and say "where would I go to make $300 a day." Nowhere. So I just try to line up those dollar bills.

[scratchy]

I was focusing on retail drive ups in my initial post. I think $25 or less for a single chip retail is too cheap for a legitimate WSR business. Taking into account taxes, insurance and the responsibility of a lifetime guarantee the price really needs to be a little higher.
Commercial rates are different and volume makes up for it.
There is a guy I have seen, not a hack, charging $55 cash for a single chip! How many people walk away and how many pay up I don't know but I want to find out. Maybe its time for an experiment!

[thedentdude]

If we are talking about retail, cash jobs. I charge $50 for the first and $10 for each additional maxing at $70. I find that many people in my area are more than happy to pay that price. The biggest help to my retail business over the past month and a half has been accepting credit cards. I get alot of corporate types who have their point cards and they pay this way. I have also noticed that I tend to stand firm on a higher price, this is with my PDR. Keep the prices up on retail. It is the last great frontier.