Increasing prices
Operators always justify a price increase, but one has to be very careful when they increase prices.
While you might feel completely justified as all the posters here have indicated, you have to put yourself in the consumers shoes.
You loose some customers when you raise prices. The key is, does the increase in price offset the loss of customers.
It is always better to look internally. How can you reduce costs before raising prices. How can you streamline your operation to reduce costs or do more work with the same labor, etc.
As well, by not posting prices and selling off estimate prices you never have to worry about the customer knowing your prices.
You bid the job based on your hourly shop rate. If you do not post your hourly shop rate the customer never knows that you moved from $50 an hour to $55 or $60 do they?
Price is only an issue if you make it an issue.
If you do not post prices the customer will never know.
The key to a purchase is selling the need. If you do not have price the customer has to let you look at the car to ascertain need and then you do your selling magic by selling need and why. Then price is really not as much a factor when you have established a need.
If you post prices, PRICE is a factor before you have established the needs.
It works, I did it in my two detail centers and never had a single problem with a customer not having posted prices.
Price conscious customers are not loyal customers and not ones you want.
That is my position on the matter.
Know your operating costs and have your accountant establish an hourly shop rate that includes all your expenses, your salary, benefits, vacaction, etc as well about about 15% profit. And if your shop rate is lower than what the market will pay, then by all means, charge more.
Regards
Bud Abraham
