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Who's Cheating Whom?Posted 7/5/1998By T.J. Reilly, AAM
I recently read an article in a local newspaper claiming that auto repair facilities have the third worst record in the attorney general's office in terms of receiving complaints from consumers, right behind phone solicitors and used-car salespeople. The public has been told too many times by the media that auto repair shops are "out to rip you off." Now, I know that there are a few shops out there that do actually cheat their customers, but I've found that those shops are the exception, not the norm. As a former Automotive Service Association (ASA) local chapter and state president, I had the privilege of getting to know several hundred auto shops. I believe I only found one shop that was actually dishonest to its customers. To the contrary, most of the rest of the shops were dishonest to their families and to their employees! Before you think I've blown a gasket, let me explain. Every time we try to solve a driveability or electrical problem and charge less than the time actually spent, we are cheating our employees and our families. I know we all rationalize doing this by thinking that we should have known to check this or that first. Sometimes we think that if we were more familiar with the car or had more experienced employees, that we could have found the problem sooner, so we often charge less than we should. I have been in business for over 10 years and have probably given away enough time to pay for several brand new cars. Giving away our time is something all too familiar to most automotive shop owners I have talked with. So what is the answer? Here are some things that we have tried: First of all, we don't charge for "diagnostics," we charge for "tests"! I have found that customers don't want to pay for "diagnostics." They have the perception that diagnostics involve opening the hood and taking a guess. Most customers don't mind being charged for a compression "test," or a cylinder leak down "test," or a fuel pump pressure and volume "test," or removing the front seat and performing 28 computer "tests." Get the idea? Tests performed involve time spent, not guesswork. Diagnostics (or diagnosing the problem) imply a thought process that shouldn't take much time and therefore shouldn't cost anything. The other key to proper billing is proper communication. We give free estimates for repairs before performing any lengthy troubleshooting. If it's a driveability problem, we will open the hood and check for an obvious vacuum leak or loose spark wire. That much is free. Then we give the estimate and communicate what exactly is involved and how much it will cost. "Mr. Customer, everything looks OK; we'll need to run several tests to determine the cause of your problem. The cost of the first set of tests will be [$xx.xx]." If we haven't found the problem during these tests, we will call the customer for additional money for additional testing. The Automotive Management Institute (AMI) has many fantastic classes available to help us learn how to make more money honestly. As an AMI graduate, I would encourage every shop owner to take full advantage of the educational opportunities offered by the industry.
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