Tech to Tech
Driveability Work And Value, Value, Value
All of my articles to date have been about driveability and technical issues. This article is no exception - the twist is that it relates to selling driveability service. This is an important issue for everyone in the shop.As cars become more reliable mechanically and more complicated electronically, there is no doubt that diagnostics will become a larger repair area. So the ability to sell diagnostics becomes more important. Yet, we hear statements such as: "I can't afford the equipment. I can't afford the training. I can't afford the information system. I don't want to do driveability because the brake guy does better flat-rating. Customers won't pay for diagnosis."
What's wrong with these statements? The problem lies with our inability to properly charge for diagnostic services. Why is this?
The problem is changing from a flat-rate frame of mind to one of value. It used to be that most jobs required little diagnostic time and mostly labor that could be defined by a book. This made life fairly simple for estimating and guaranteeing a reasonable wage for the tech. However, changing times demand changing techniques.
Value is the key word for consumers in the '90s. Value is a subjective quality. What does it mean? It means that tickets to a NASCAR race have value to me, and they have no value to my mother. It means ballet tickets that have no value to me have value to my mother. So value is in the eyes of the beholder. Heck, some people see no value in a haircut, imagine that!
With customers, there are two important types of value: real and perceived. Real value is fairly simple; it's doing a fair job for a fair price. I hope we all deliver real value. Perceived value is the subjective part. Perceived value can be enhanced or destroyed easily.
OK, techs, here's how you can destroy perceived value for the customer. Leave a greasy hand print on the hood or door handle. Leave the radio blaring on your favorite station. Forget to return the wheel lock to the correct location in the customer's car. Leave the cool air duct loose from the air filter. You may have performed a great valve job on this car, but when the customer opens the hood and finds the duct loose from the air filter, their perception is that you do sloppy work. The value in their mind is lost.
Now it's the service advisor's turn. This is where most perceived value mistakes are made. How you speak to a customer and the words you use are critical to the customer's perception of value. Let's say you have started a diagnosis on a driveability problem and after an hour there is no solution in sight. The service advisor had pre-approved an hour for testing and now the service advisor needs to call the customer for further authorization. The service advisor calls the customer and says, "Well, we don't know anything yet and we'll need authorization for another hour of diagnostic time." Where is the value in that statement? You are judged more by the professionalism of your presentation than the quality of your work. Sad, but true.
I advocate a diagnostic check sheet (not a trouble tree) to document all the steps that have been taken in the process of elimination to pin point the problem. With a checklist, the service advisor doesn't have to waste time quizzing the tech as to what has been done. Also, if you seek advice from others (techs, tech lines, etc.), you've documented the steps already performed and can easily provide this information to whomever is helping you. In addition, when it comes time to write the bill, it's easier for the advisor to justify a bill with all the steps written down. This assures that you get paid for all the tests performed. A check sheet system also helps someone learning the ropes to better understand the diagnostic process of elimination. You can also evaluate what steps in the checklist are the most successful for future repairs.
We have all heard the terms "bait and switch" and "low-balling." Both terms involve starting at a low price and then switching the customer to a higher price. Of course we all get caught in this trap because as we check cars over we find more problems, and bills almost always exceed the original estimate. Hopefully, everyone reading this article is doing the correct thing and confirming every step with the customer. The problem is that every time you call for more money, your credibility shrinks, even though all charges are legitimate.
So here is my solution: don't be afraid to write an estimate that takes into account the complexity of diagnosis. For driveability work at my shop, we ask the customer to pre-approve a set amount. Consider the following real example. A customer comes in failing state emissions, a job that holds precious little value in his mind already. You tell him the beginning diagnostic charge is one hour. You run tests and determine the HC failure is due to a bad spark plug. You call the customer and inform him of the cause and quote him the diagnostic time plus X number of dollars to replace all plugs and X dollars for the parts, equals Y dollars for the whole repair. Everybody is happy. Now, with the new plugs in, you retest the emissions and lo and behold the catalytic converter has fried from the plug being bad for so long. Now you have to call this guy back and explain that in addition to Y, he also needs to spend Z to finish this repair. We all know how fun this can be.
By quoting an estimate that accounts for the proper diagnostic steps - we get two advantages. We don't lose credibility as we need to do more work and we don't have to keep calling the customer back every step of the way. You can't imagine how much service advisor time is wasted calling back all the time, not to mention the tech's time wasted waiting for approval.
I also tell customers with a driveability problem that I want the car for two to three days. How can you work on a complex problem with a gun to your head? We complete most cars in the first day and under the price quoted, which makes us heroes in the customer's eyes. There is nothing worse than for a customer to be strung out all day only to find out at four o'clock he/she has to find alternate transportation for the next day. When a customer starts to complain about our policy, I ask, "Have you ever taken your car into a shop and it cost more than expected and it took more time than you expected?" The answer is always yes. Then I ask, "How did you feel about that?" The answer is always angry. "So wouldn't you feel more comfortable if I was honest up front about the possibilities?"
When explained properly, we have only had a few decline our service. Like the kid that said, "Gee, I've only got $30." Boy, am I glad we prequalified him! I should have known he saw no value in what we did because his car still ran (barely). Also, he had $800 worth of gold rims, $600 worth of tires and a $2,500 stereo system, all invested in a car worth at best $400. Be confident in your reputation and ability. Take the high ground! You should run your shop, not the customers!
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AutoInc. Magazine ®, Vol. XLIV No. 1, January 1996