Search the Community

Firstly let me say that I an just a regular guy from the UK who is the owner of a seven bay service centre/garage. I am not a financial expert. The dreaded inflation is upon us again. For the guys as old as me then this is nothing new. Back in the 70,s we had 15% inflation, but we all got by and lived for better trading days. Here in the UK we have always looked up to the USA because of your business prowess. So what do you guys look out as your worst enemy! When prices are going up then I find that the gap opens between rich and the poor's disposable income. So this question will effect garage owners in different areas. My garage is in a poor area with many immigrant families who drive cars. So this means we have to be more flexible with pricing. Finding out if your customer can afford that service ! For this reason we devised a three tier service pricing structure. This has also the effect of not loosing your profit margins. The lowest price should include an oil and filter change and a general vehicle check over. This way we find the customer will perhaps be able to afford a service and your profit margins wont drop. This is just one small idea that we carry out! What do you guys do in these times of high inflation ?

I have preached on these forums, at my shop, to my coaching clients and at seminars that price is not the major deciding factor with regard to consumers. Well, I need to restate that comment. For some people, it is. I have a customer that constantly complains that my prices are too high, that I am higher than the dealer, that he can get the same parts on line for less, etc, etc, etc. After a 20 minute battle over the price of a catalytic converter, trying to point out all the benefits of why we are his best choice, I asked him, “Is price your only concern when it comes to your car?” He sternly replied, “YES!” So, I told him, “Well, then we can’t do business, please pay me for what you owe me up to this point, pick up your car, and good luck to you.” I felt uneasy after I hung up the phone, not just because of this one person, but for the many out that have no real understanding or respect for what we do. How would you have handled this situation? BTW: I gave the guy multiple options, explained the difference in parts and also called the dealer to see what the price would be for the job. We were not higher.