Charging Customers

[bam]

This is such a tough subject for me and I guess I'm not sure there are any good answers but I sure would like to know some rules of thumb that others use.

Some problems are so tough to diagnose. How do you charge your customers when after a couple hours you think that maybe a part will solve it and it doesn't. So you go back in for another hour or so and you put another part and that does the trick. (This story can be written many different different ways with many different numbers).

Bottom line: You have (fill in the blanks) $480 dollars in parts and four hours of labor. The actual labor on the fix was one hour and the part that finally repaired the complaint was $150. If your labor rate is $70/hour, what do you charge them for parts and labor, $290 (includes 1 hour diag) or $760 or somewhere in between. And how do you pay your tech?

[dodgeboy]

I MIGHT GET SOME FLACK FROM SOME OF THE OTHERS IN THIS FORUM, BUT I WANT TO GIVE MY OPINION ON THIS SUBJECT. THIS DEALERSHIP SPENDS THOUSANDS OF DOLLARS FOR TECHNICIAN TRAINING AND ADVANCED DIAGNOSTICS TOOL ANNUALLY TO BETTER SERVE THESE CUSTOMERS. WE GET AUTHORIZATION FOR A MINIMUM DIAGNOSTIC TIME OF 2hrs. MOST OF US KNOW IN THIS BUSINESS THAT VERY SELDOM IS AN ELECTRICAL PROBLEM ALWAYS CLEAR CUT. I HAVE HAD MY TOP TECHS SPEND EXTENSIVE TIME TRYING TO TRACK DOWN AN INTERMITTENT ELECTRICAL PROBLEM AND PULL THEIR HAIR OUT DOING IT. I FEEL THAT WITH THE TRAINING MY TECHNICAINS HAVE, THEY ARE BETTER THAN ANY INDEPENDENT SHOP OUT THERE. I FEEL THAT IF WE CAN'T FIX IT, THEN IT WON'T GET FIXED ELSEWHERE. I HAVE NO QUALMS ABOUT CHARGING THE CUSTOMER THE FULL LABOR TIME ON A TOUGH DIAGNOSTIC REPAIR. IF I FEEL THAT MY TECH WAS OVER HIS HEAD, OR JUST FLAT ON THE WRONG TRACK THAT WOULD BE A DIFFERENT STORY. WE STAY IN CONTACT WITH THE CUSTOMER AT ALL TIMES TO INFORM THEM OF THE PROGRESS OR LACK OF PROGRESS AND THEY ALWAYS HAVE THE OPTION TO STOP AT THEIR OWN COMFORT LEVEL. THERE ARE SOME OF YOU OUT THERE THAT MAY FEEL THAT IS SOMEWHAT HARSH, BUT WITH THE COSTS ASSOCIATED WITH RUNNING A BUSINESS TODAY I DON'T GIVE AWAY LABOR. I'VE SEEN TOO MANY CUSTOMERS COME TO ME AFTER THEY HAVE ALREADY SPENT A FORTUNE ELSEWHERE AND DIDN'T GET THE PROPER REPAIRS. WE'LL FIX IT RIGHT, BUT IT'S GONNA COST YA!

[robc]

Repairs are always like hindsight - 20/20. That is never the point. Anyone can say after the fact - oh if you just would have replaced the widget first, that would have fixed it. There is simply no way to know that (besides guessing) without going through the procedures.

If I trust that my guy was doing his best, with the tools and training that he has, then I am going to charge for it. If a tech goes off the manual because it leads him nowhere then I trust his judgement. No tech that I've ever met likes to get his butt kicked on a difficult to diagnosis and just starts guessing. His experience may tell him, "gosh in similar circumstances a coil would fix this" and try it. If it doesn't work then he moves down his list - again based on his own experience. Afterall, I totally believe it is the knowledge in the man's head that people are paying for. Any c-tech can read a drivability manual and follow the steps. An a-tech knows where to go when the manual stops.

Now if I don't trust the guy and he is clearly wayover his head - then I'll eat it or not pay him. I mean if I look at the symptoms and stupid me can figure out "hey we should try a coil here (or whatever)" then I am not going to charge the customer for his wild goose chase.

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** Rob, Editor Dealersedge/WD&S **
Help is only a message post away!
robc@dealersedge.com

[dodgeboy]

DITTO. ROB YOU SAID IT BETTER THAN I DID. THATS THE WAY I FEEL ABOUT IT TOO

[TomD]

Gentlemen, unfortunately we in the Dealerships have always missed the boat on this one! We still treat cars like its the 50s. We are 25 years into the age of computers in cars and we havent changed our way of selling diagnostic time. The one line I hope the next generation of service people will drop (because we havent) is the we get an hours check-out time We need to take the lead (and profit thats generated) from the medical field. Selling diagnostic tests to find the problem with the vehicle (whether the condition exist or not). Examples would be computer and electrical test, Chassis and suspension test along with the usually compression test, leak dye test, midtronics test etc. These should be menued out just like a maintenance schedule so the advisor and techs have a means of selling a product to diagnose a vehicle and get rid of the guessing. Afterward, the results of the test can be shared with the owner, and the advisor then can advise what repairs are needed at what cost.or if no repairs are needed. If the owner decides not to do further repairs then he pays for the test(s) performed and your assured hes leaving with the correct diagnoses.

[NetProfits]

Well, we could follow the medical field, but I advise that we do so with caution. I know a guy who had a stress test and ekg, all tests were good and he dropped dead of a heart attack the next day. Is that considered a "comeback" or "a never will be back"?

[TomD]

Netprofits, you've proved my point..At least the doctor got paid for his "test"!!