“We are a group of highly-skilled, trained and educated professionals that are exposed to more advancement in technology and vehicle development than we have ever been exposed to in the past.”
Written by Craig Baills, SafeTstop Partner, Toowoomba
The value of our trade is determined by the sum of the marketing our customers are exposed to.
Customers are bombarded with offers from dealerships, franchises, online platforms, corporate entities and individual businesses. Some repairers claim they can perform or supply the “cheapest” logbook service in town. We need to be very careful that our value and image as industry professionals won’t be tarnished if we get involved with cutting prices and profit margins long term.
Every time a consumer sees advertising or signage for a “Logbook Service” for $99, or an air conditioning regas for $85 or cheap as chips pink slips, then that price, subliminally becomes the benchmark for their perception on pricing in our industry. It could also raise doubts over the quality of the service, or the customer may assume they were overcharged at their last service.
I have had discussions over the past few months with workshop owners who have lost work because they were priced out of the game by some lowball offers or businesses underselling the same job.
I would say that this is actually underselling the industry and quite likely underselling themselves. Now I’m not talking just a 10% difference, I’m talking about a figure of 25 – 50% plus differences on many occasions.
I don’t know how any repair business can quote 50% less than what I would consider an accurate retail quote.
Value your time, value your business, value your staff, value your ability and most of all value your customer and your trade. Stop working for a turnover and work for a profit and the benefit and sustainability of the trade.
If you’re in it for the long haul, pay close attention to how you are marketing your business and your business will benefit from correct pricing strategies allowing you to make a reasonable profit which is needed to reinvest in staff, training, equipment and business development.
Continued price cutting cannot be sustained.
There are many of us out there in this industry that go on with our business, quietly achieving, serving our customers and realising the value of what we do. Always striving to achieve better outcomes for the business and the consumer, to increase the benefits to our staff and our bottom line, to develop our training, present a professional workshop and keep the whole operation up to date.
“Loss leader” advertising is a “Loss Leader” for the industry. Find a different strategy that will have long term benefit for your business and for the industry.