Are you wondering how to sell value instead of price? You’ve come to the right place!
I’m going to share a few tips we practice every day at our repair facilities to explain how we set our shop above the price wars.
Watch the video here or keep reading.
First, look at a sale as more than just adding money to the cash register. Every job you take in is great for business. But if you retain that customer for years to come, it’s a success. Every sale you must realize your objective is not only to hook the sale, but to start a long term relationship. Every car owner has a spouse, a son, a daughter or a relative with a car problem.
Today, you have the opportunity to fix the car they brought in, but your main objective is to make sure they think of you first when the other cars in the household need attention. These happy and loyal customers are going to give you the best advertising that you can’t buy – A referral. And happy, loyal customers are the ones you need to get video testimonials from, raving about your service and their experience.
HOW do we do that?
I’ll start with a sure winner. On every transmission or engine replacement or even a brake or muffler job, (OK, any repair) we always give the customer a free of charge, complete undercar safety inspection. We explain that usually any suggested repairs have no labor costs to the customer.
Picture this: “Mr. Smith, the price to replace your transmission is $2000. This includes a complete replacement of your transmission with a nation-wide warranty backed, better than new transmission, a complete cooler line and transmission cooler flush and cleaning, a torque convertor and a complete undercar safety inspection at no additional charge, all for your convenience.”
Safety is a great word and you’re not lying. It is unsafe to be stranded on the side of the road and it is inconvenient to have to return to a shop for any additional repairs.
We further explain: “Our complete undercar safty inspection is a timely procedure and what we do is take a close look at everything on your car including scanning your vehicle for any hidden codes. Our technicians are instructed to inform us of any parts that need immediate attention and those that will require service in the near future. And then I’ll give you a call and maybe you can stop by and we can take a look at those parts together. The big surprise here Mr. Smith, is that the labor to replace these additional parts will be included in your service and at no additional charge for labor. You pay for the part, we’ll pay for the labor.”
Are you thinking “Lawrence you’re nuts!”?
Keep reading to learn how this complimentary service actually ADDS money to your bottom line and how you’re not actually giving anything away.
When you have to do a transmission job, for example a fwd transmission, you already have to remove one axle. To remove both of the axles, you need to disassemble some of the brakes. You also have to remove the mounts and the sub-frame bushings. Not only that, but the exhaust has to come off, and there are exhaust hangers, a muffler, a mid-pipe and a flex-pipe to also remove.
Going another step further, you had to remove the tires. How are the tires looking? I’m sure you can set up a wholesale account with a local tire shop and just drop off the wheels and get tires mounted. Some of you may have a tire machine. Now check the suspension – tie rods, ball joints, shocks etc. Check the hoses, belts and battery. Scan the car. Check the light bulbs and headlights. Check it all!
Now remember to explain to your techs that you need a list of parts that need replacement AND parts that are OK for now but are marginal. It’s VERY important you have a list of some marginal parts. This lets you explain to your customer: “We checked your brakes as part of the complete safety inspection and although your brake pads are a bit worn, I think you can get at least another season out of them.”
The reason it’s so important to include this in your upsell is you’re doing 2 things: First, you’re showing the customer you are not trying to just upsell, but you’re actually trying to help them. Think of your customer as your really good friend and you are trying to save him or her some money. Second, you are establishing a relationship with them by showing you are honest and credible.
Did I get you thinking or at least nodding your head in agreement, or are you still not sold?
Keep reading…
Here’s why this makes business sense – Dollar sense.
When you quote a job, you look up the labor right? And this is the money you can charge to do the work. You can’t charge for the time it takes for your technician to push the car inside and rack the car. This takes time and adds up! What I’m trying to say is, the car is already on the rack, the time is already spent, so make the most of it. When you achieve a successful upsell of a few mounts, an axle replacement, and a new serpentine belt, these parts are usually at least 100% profit!
So how many transmission jobs do you do per week?
3? 5?
How does a $200 upsell on 5 jobs per week sound to YOUR cash register?
It sounds to me like $4000 of profit added to your bottom line at the end of each month!
You know when a customer drives off the lot, the stereo is off and they’re listening to their cars like never before. Don’t let a simple clicking axle or a leaky exhaust spoil their experience.
Ready for another tip?
Question: Does your garage have a hose and a bucket? Of course it does – Now use it!
Wash your customer’s car!
Better yet, take it through a car wash on your final test drive. Wipe the dash and interior down with an Armour-All wipe and clean the inside of the windshield. Vacuum the driver’s side and passenger’s side footwells. It gives you one last opportunity to remove any greasy hand and foot prints your techs might have left behind. To top it off, install a simple clip-on vent freshener and set the heat controls to vent and select the low fan setting to blow your customer away with the extra special service you provided. The last thing a customer wants to do after giving you any of their hard earned money is get back into their same old smelly car. The little bit of detailing is worth a million bucks to your customer, and it costs you next to nothing.
We also give our customers 2 free oil changes: One as a postcard thanking them for choosing us and then a second when it’s time for that oil change.
Why would we give them 2 free oil changes?
First, we’re embedding our shop’s name into their minds. Whether this is their first visit or their fiftieth, we want them to make us their first (and ONLY) call to fix their vehicles.
Second, I’d bet when the time comes for that free oil change, most will also set-up the time to get some of those marginal parts replaced. And during that oil change, we of course perform another inspection, air up the tires, clean the windshield and clip in another air freshener.
Last but not least, remember to ALWAYS go get the car for your customer and drive it up to the front door when they come to pick it up. It’s very courteous and the last thing you want is your customer to try starting their car after they paid $2500 to get it fixed, only to find out they now have a dead battery. To be sure this never happens, make sure you have a dedicated spot for a jumper pack in your shop.
You know there are many places that can fix cars. You also know there are many places that can undercut your price.
So what?!?
Ask yourself these killer questions:
If you have a story on how this helped you or other tips like these that can help other shop owners increase their “value”, send an email to captain@etereman.com. If we share it with our readers and viewers, we’ll send you a Reman U t-shirt.
You can watch the video of this article here.
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