Ins or Cash?

[glassdoctor]

Keep in mind that not everyone has the same market conditions or client base. In some areas, you may be able to get away with charging higher rates without losing much business. If the customer is paying out of pocket, there is a point with each one, where they will choose to walk. Might be $25 or might be $85. Everyone loses a certain percentage of potential work, for various reasons. Price isn't the only one, but it's a big one.

Some are fortunate enough to be able to set their rates on the higher end of that scale... say $60.... and still get the work. Consider a hypothetical....
What if you charge $60 and get 30% of the potential jobs?
What if $50 would get you to 50%?
What if $40 got you 90%?
You could argue which would be better for you, but the next guy may not agree.

Also, local competition does impact what the consumer expects to pay. When the local glass shop chains have "$19.95" signs plastered all over their vehicles and storefront windows, people come to think that is normal. Doesn't matter that their repairs suck and they are just trying to bait-and-switch. I don't chase retail work, so it doesn't bother me too much. But while working dealer lots, I have people stop and ask me if I can fix their car. Many people lose interest pretty quick when I quote them $40 or $50. I think I get this reaction more now than I used to, and I think its due at least partly, to the "$19.95" campaign.

For fleets accounts, something that impacts pricing, is what it costs to replace glass. I haven't really tracked replacement prices, but I think it's actually cheaper now than it was 10-15-20 years ago. It would be much easier to increase repair prices if the replacement cost would go up instead of drop. Locally, dealer price is about $125 for a replacement. When it's dirt cheap to replace, it's a tougher sell to repair. If new glass was $250-300+ a pop, that would make life so much easier

No matter what you charge, what if YOU raised your price 20-30% right now? Would it be a good thing?

[screenman]

No but 5% may go unnoticed.

[Brent Deines]

Most of you guys charge less than the going rate 24 years ago, understanding how much each job costs to do is a good starting point.

Thank you screenman. I think we are on the same page. I really don't understand why our industry thinks we don't deserve to raise our prices as prices for every other product and service increases. I did fine charging $45/repair 25 years ago but I didn't get rich so I sure don't think it's "greedy" of me to expect a bit more for the same service now, especially when I see the repair quality many of the local competitors provide. Horrible!

Someone will always offer a cheaper price, but I believe there is always a demand for quality. I'll never offer the lowest price in town, but I do my best to make sure the level of service I provide is second to none. Our most successful customers are "never" those who believe they can build their business by offering the lowest prices. Wal-mart does it, but you can't start a business and compete with Wal-mart for $1000. It's an entirely different concept.

You also can't expect insurance companies to keep increasing the price they pay for repairs when you are willing to do cash jobs for half that amount and then advertise that fact all over the Internet. My work is worth more than what the insurance companies pay, not less. Perhaps that is not the case for everyone, but it should be.

The first thing any windshield repair technician, or any businessman for that matter, should do, is create a budget and determine how much they are actually making on each repair after expenses, taxes, etc. Only then can you plug in the numbers to determine if raising or lowering the price will help your business. Personally I would much rather do 1 repair for $100 than 10 repairs for $10ea or 5 repairs for $20ea. I'll spend the rest of the day marketing and still make it to your place in time for tea! At the end of the day, my net profit will be higher and I will have gained more new customers than simply offering the lower price.

I never try to tell someone else what to charge but I do feel windshield repair technicians often undervalue their time.

[Cryatal_Image]

"Personally I would much rather do 1 repair for $100 than 10 repairs for $10ea or 5 repairs for $20ea. I'll spend the rest of the day marketing and still make it to your place in time for tea! At the end of the day, my net profit will be higher and I will have gained more new customers than simply offering the lower price. "

I am not trying to judge anyone here based on a price that may be workingfor them. There is a full blown glass place my wife took our van to get a repair done yrs ago and it was and it was around $30 or so. Like i said they have since sold their business and they charge a higher amount. A few months ago when my wife was working at the hospital, another co-worker was bitchin about how expensive that place is now and tookher vehicle to a different location to get her repair done. I just priced their location price and it was $30 for the first and $15 ea after the 1st.

I dont find any reason not to be a few bucks cheaper to get your name and quality of service out to customers and then after they get to know YOU, you can be more competitive. Or match your competitors and just have a promo special for the next 10 days only. Can walk into the Y.M.C.A and tell them that you would do their employees vehicles at a discounted rate (fleet) and a discounted rate for all of their customers good for the next 10 days only!

By offering something like that to 1 or 2 businesses at a time, making them feel special, you can make it up at a few other locations or fleets. Suppose you can keep taking it away kinda like mcdonalds and their mcrib. Specials dont last long so people will take advantage of such a thing...(just an idea)

Peronally, i dont think seperate warranty sheets are needed as everything could be said at the bottom of the invoice quite clearly so that would cut prices down. I dont think you need to get all fancy with special looking warranty papers and all of that just so you think others perceive you as some high end professional holding a college degree in 5 different areas of business. In the end,wont matter. Just like going to buy a treadmill. You want the treadmill, not all the rediculous bells and whistles as they are useless to most. K.I.S.S.

Like i stated earlier, in my location, everyone knows the prices of everything and the value of nothing. If they want to buy, they buy it and want to get out of their. Not going to stand around and kiss your but for 3 hours. Like on "Black Friday", people stand in line for hours waiting to get into stores cause things are dirt cheap. I am not trying to upset anyone here but hey, this thread seems to be moving quite nicely from all the postings

[screenman]

So, how much does it cost to do a repair? Not everybody buys on price, there are far more reasons.

[Cryatal_Image]

So, how much does it cost to do a repair? Not everybody buys on price, there are far more reasons.

I live in a university college town. So having kids live on mac & cheese and pizza during their 4 yrs, price means more than value pretty much. I dont live to far away from other towns that i plan on traveling to. I will drive to get good fleet accounts though

[just chippen away]

[The first thing any windshield repair technician, or any businessman for that matter, should do, is create a budget and determine how much they are actually making on each repair after expenses, taxes, etc. Only then can you plug in the numbers to determine if raising or lowering the price will help your business. Personally I would much rather do 1 repair for $100 than 10 repairs for $10ea or 5 repairs for $20ea. I'll spend the rest of the day marketing and still make it to your place in time for tea! At the end of the day, my net profit will be higher and I will have gained more new customers than simply offering the lower price. .

Brent, apparently you have never heard that saying,, You must not have hung around old salesmen.
Lets see, charge 75 plus for repairs, how many may pucker shelling out their hard earned dollars that may have taken them 3/4 of a day to make... as to 45 -50.. It would be easier to pay out that money and be happy to do so.... That is what is being stated, not 100.00 repair as to 10.00 repairs..... Again keep your prices lower and you get more work, exposure on the road and referrals from all.....

I will have my beer after the day is over.


You may be half right on charging 100.00 them go marketing, but you will also be spending money TRYING to gain a customer...

Lets look at the 1 person you charged 100 bucks, How many will that 1 person tell that you do a good job for the money? as to 10 people telling their friends? That is also good marketing without having to convince someone that you are the best....

I personally would rather hear from someone that had work done from ABC chip shop that he is good and has good prices, as to having a rep of ABC chip repair tell me he or she is the best with the best prices, then find out his work and prices are not the best in town..... You can market all day long blowing smoke to potential customers that may not even call on you at all....

I have Fleet prices, Retail prices, and chip of the month member prices....(repeat customers with more than 2 service calls) that is something I started yrs ago as a joke and when I tell them they are now a member they love the small discount and ask for more of my cards..... My customers are my marketing members....

Enjoy your Tea,

[Cryatal_Image]

uhh, i didnt mean to start a negative debate her guys. Its all good! Things work well for different people. Anyways, take a look at a website i found. I hope i dont get into trouble for posting this thing but just showing everyone whats going on out there... http://clintsglass.com/index.php . If this guy has cars lined up for a block and i have time enough to stand there and count the cars going in and out of there. I would sure question myself on a few things wouldnt you ?

I see a few short cuts he takes and where is the UV pro. All i see is a quick sanding and buffing, am i wrong?

[glassdoctor]

1 job @$100 vs 5 jobs @$20, 10 @$10 etc.... kinda misses the point. Come on man... with that example, it's a no brainer.
Here's my take.... you do the one @$100 and I will do mine @$45..... and then I do 7 more @$45 ea while you spend the rest of the day marketing and finally get one more sucker to pay $100. I made $360 while you cooked up the two primo jobs.

Really, what matters at the end of the day is how much money you made and how long it took/what it cost you. Actual cost to run the business is peanuts. Whether you do 5 jobs a day or 10, isn't much different unless you are driving 30 miles for each job. Vehicle payment and insurance is the major expense of this biz and that doesn't change with the # of repairs done. Only extra expense to doing a couple more jobs a day, is maybe a little fuel and a dime's worth of resin. Am I missing something?

Getting $60-70 a pop is awesome, if you can keep pulling in those jobs day in and day out. But I'm doubting whether that's practical for most WSR guys. I would love to be wrong, and I know some of you say you do charge such premium prices. I'm not against that of course, and I do NOT suggest selling out and being the cheapest in town either.

Like I said, I don't really do much retail work... but from what I've seen over the years, I wouldn't expect to get much work at those rates. And it's got nothing to do with the quality of my work.... I would put my work up against absolutely ANYONE.

[Brent Deines]

This is business basics and economics guys. You just can't keep your prices the same forever, or worse yet, lower them, when your expenses go up every year. I didn't make up the rules but I have been fortunate enough to get to work with some of the most successful people in our industry, and not one of them got there by trying to have the lowest prices in town. I've also been fortunate enough to increase sales and profits nearly every year for 25 years so apparently my customers also spread the word, but instead of telling friends where to get rock bottom prices, they tell their friends where to get the best value.

Like I said, I'm not trying to tell you what to charge. If you are happy with your sales growth and net income, more power to ya! I just feel sorry for the newbies that read this form and get into the business thinking all they need to do to be successful is come in with a lower price than everyone else. That's the worst advice you could ever give an entrepreneur! Always sell value, not price.

Newbies, go to your local Small Business Administration and get yourself a mentor or find someone else that is as successful as you hope to someday be. Listen carefully as they explain how they made their fortunes and follow their advice on how to build a successful business. That may just be the best decision you ever make!

Here's one more piece of advice for newbies and veteran business owners alike. Spend more time running your business than telling others how to run theirs. On that note I think I'll heed my own advice and get back to work. I probably lost $100 just typing this message!

Sorry to get you guys all riled up.