Ins or Cash?

[glassdoctor]

I'm not suggesting anyone set out to be the local price whore, and set out signs for $20 or $30 repairs. Don't recall seeing any such advice on the forums either, although I haven't been here much for a few years now.

One reason I play devils advocate in this, is that in the past I have seen a sort of arrogance from some... always looking to cast stones at those who charge less than a premium. If someone finds plenty of work at $40 and makes good money, maybe that's what works for them. It's not unreasonable IMO. Maybe it's true that they could jack their prices to $60 and make even more, but then again, maybe not. What is the minimum acceptable non-whore price? $60? $50?

I would like to hear more from those who charge at the high end.... $60+. Any tips used to sell the customer on a $70 repair, or insights such as if you have an idea of how many jobs you might lose because of your price? Do they ever come back and have you do it after all? Maybe it's a very small percentage? Tough to really know? I really am curious. Maybe I have missed a lot of that info.

I'm sure there is a market for high price retail work... same is there is a market for high price cars, clothes, etc. Same with choosing a place to eat. Some people gladly pay $70-100 for a steak dinner. But way more people go for a $30 steak dinner. lol

In our case, doesn't the customer choose what's best TO THEM? ....whether that is going for the cheapest priced option, or going specifically to the highest price shop in town, so that they get "the best".

Either way you set pricing, you are losing some customers to the other end. Note... this can be an argument in favor of keeping your price at the high end.

I'm not riled up... it's just an interesting discussion.

btw, just because time marches on, doesn't automatically justify or require an increase in cost of a service or product. economics 101 is b.s. In the end, the cost of something is what people are willing to pay for it, not what a handbook outlines in a theoretical world. It's too bad it's not as simple as adjusting prices according to the price of gas or candy bars the past 20 years. I would be charging about $100 for fleet work and $150 retail.

[Windshield911]

30 dollar steaks is still pretty high.

[Brent Deines]

This is a good read for anyone who is interested in growing their business. It even has good strategies for those who feel they can only compete on price...something for everyone.

http://www.amazon.com/Discipline-Market ... 0201407191

[glassdoctor]

Oh, for example... headlight repair. Today, it can actually be harder to sell it for the same price as what I charged 10-15 years ago. It has nothing to do with my cost to do it, or my cost of living, or even how good I am at it, etc. Doesn't matter what I charged last year or ten years ago, or what Joe charges in San Diego or New York. What matters is what my customers are willing to pay. What has changed, is that I'm not the only game in town and it's not a voodoo process anymore. Some of the mystique is no longer there... it's not a new idea. Now everyone sees all the kits and products advertised, and dealers know there are others out there all looking to do it too. I know some in my area are charging as little as $25 a car. Kit's on TV and at the store are $10-20. Suddenly, $60 or $70 sounds pretty steep.... especially if it's a "bone row" type vehicle.

No, I'm not getting into a price war, not dropping my pants, and I'm not scared of the competition. I can sell a better product, more experience, etc... and it justifies a higher price than the wannabe down the street. But, do I stick to my guns and refuse to be flexible in what I charge to dealers? Do I actually increase my rates from 10 years ago based on principle? I don't think that's an option. I would lose much of my headlight work. What I would be left with is just doing the nastiest ones.

Headlights for me has never been a fixed rate service. I often "bid" the price based on the specific vehicle that needs done. That gives me the ability to be flexible in what I quote, and learn what price a particular dealer is comfortable with, and how price makes them pucker. Dealers absolutely think twice about doing the work, when the price is higher. There is a limit to what you can charge.. you can price yourself out of work.

What I have done? Be flexible with how I price the work, which means actually charging less than I used to in many cases. The catch is, that I've worked to streamline the process to reduce the time and effort as much as possible, so that I CAN justify being more competitive with price. So I may be charging less on some jobs than I used to, but I can do it faster and/or with less effort. Work smarter, not harder.... right? Ten years ago, I actually charged a few bucks more on average, but it was more work and usually took at least twice as long. Also, with the competitive pricing, I get more of the easy jobs. Some headlight jobs are tough and some are cake. No sense in pricing myself right out of the cake!!!

Also, I continue to improve the product I have to offer.... so I have leverage to work on the price as I see fit.

I hope some of you find some value in what I've posted. I'm sure not all agree, but to each his own. FWIW, last summer, one of my dealers had several cars come in one week with bad headlights. Ideal high volume case, line em up- knock em down.... 6 cars in 90 minutes, using a wipe on clear coat. Polishing out all the way would have taken a little longer. None of them were tough ones like a grand prix/impala. Just basic, fairly average jobs with a couple pretty easy cake jobs. For less than 2 hours work, what $$ would you be ok with?

[glassdoctor]

30 dollar steaks is still pretty high.

I'm including a draw and a couple sides.

[glassdoctor]

Books? Does nobody have actual experience to share?

[candyman]

Its very difficult for someone new to this business, to know where to set the price for WSR or HLR services. Some dealers use the high end to get people to purchase their product and when reality sets in that the customers are not going to pay that, some fail from the start or are no longer motivated. What price a person charges in a higher income bracket is not the price that someone in a lower market will pay. Iam not at the Bottom nor at the top. I charge a fair price that I think my customers can afford and is willing to pay. I have replacement shops that will go to the customer for $125 and up. Iam satisfied with My HLR prices, but I do need to increase the WSR side. Every week I see flyers at the local detail shops with the, get big bucks in your spare time ads doing HLR, Window Tint, Dash board replacement, or Fix-a-dent. The potential income they have are unrealistic and were designed for a very high income market. The market is full of the what Ifs. If, is a word that lures many people to bankruptcy because they never achieve the If. I went to a motivational lecture several months ago and the speaker stated he never lowers his prices even in a bad economy. I noticed in a article that his business was now filling for restructure. I guess he didnt lower his price. Their is no one price that will satisfy every shop for the entire nation. I think my price is fair. Do I think I should charge more. yes. Reason! The risk we take when restoring a HL or repairing a WS. Will they pay more? Some will, others may not. Your product & service is only as good as your market is willing to pay for it. I have a low overhead expense than someone with a brick & mortar building. So my prices as they are, produce a profit at this time.

[screenman]

Still no answer to my question, seems like I am talking to a bunch of politicians.

[Cryatal_Image]

well, the value of the "dollar" keeps going down. Maybe we could offer the UV protectant for an additional $10 or so and tell them what it does. After polishing, etc. the HLR looks great to the customer as he HL looks brand new. Now you could UPSALE and say for another $10 i can spray some UV protectant on which allows us to give a 1 year warranty on the job i just did for you. When he comes back in a few months to have it done again, i bet he wants the UV at that time.

All businesses upsell. THose of you old school need to stay on top of change and should accept price decrease. Things today are much worse than they used to be and getting worse.

~Guy goes to see a doctor. Doctor says, "whats wrong?" Guy says, "hurts when i do that". Doctor says, "dont do that!"

[screenman]

Hold on young whipper snapper, why should I accept a price decrease when I can still command a increase or at the least maintain high prices. My sales skills enable me to overcome most price objections, in fact I see people talking prices as a buying signal.

Work clever not hard, seems to be the way to go.