clearquest wrote:I see now that increasing "dollars per windshield repair" is something that some of you don't see any value in. That's ok, we all operate with different goals, different ways of doing business, different ways of evaluating our success, etc. If you are satisfied with what you do, that's all that really matters. I'm just one who always seeks to improve my profit margin.
Since I've been in business since the late 1980's I've raised my prices consistently so right now, today, my base price (inflation adjusted) is about 1.02% of inflation. My price for additional work (I charge base/+/+) is more than double inflation-adjusted. I've also concentrated on consolidating my territory which means I drive less and repair more and I also have considerably reduced my overhead. One way I've done this is by controlling my schedule as much as possible rather than allowing my customers to control my schedule. I don't do retail unless it's an employee (or family member) of one of my accounts. I don't advertise - period. I don't have a shop. I do WSR exclusively. If I need an additional account I only market my services until I secure as many accounts as I need - then I stop marketing/selling. Consequently, I'm highly efficient and practiced in repairing complex damage that the competition can't or won't repair at the price I charge. As an example, Screenman and I both address fleet accounts. He is more discriminating than I both in price and in range of WSR products. One reason (there may be others, but I would be speculating) is that he offers other services: he does training and he's a Delta supplies distributor. My sole income is from WSR. Maybe you have other profit centers. That's wonderful. Good on you.
I recently read an interview with the CEO of Costco who is about to retire. For those not familiar with Costco, it's a big box warehouse-type store that sells everything from watches to watermelons at just about a wholesale price and in volume sizes, like packages of 36 rolls of toilet paper and ten pound jars of peanut butter (which is why you see convenience store and small restaurant owners loading up daily). Anyway, this is roughly paraphrased, but basically he said " A digital recorder sells book retail for $49. While most retailers would be scratching their heads trying to figure out how they could get $45 I sell it for $40. And I keep thinking, 'O.K. I'm $9 below market. What can I do to sell this for $38?
I don't give my work away. But a significant amount of my prior business experience is in constructon contracting, where the specifications are spelled out, all the bidders are assumed to be equal and the trick to getting the job is to be (with few exceptions) the lowest bidder who can both execute and make enough of a profit to be alive to bid on the next job.
If you're billing insurance companies for $60, you're billing a twenty year old price. I don't get sixty dollars but as I said, I've raised my prices to compensate for inflation. I was profitable twenty years ago at the price I was charging then and I'm profitable now. I'd consider a $60 repair a gift rather than a necessity. If you need $60 to make a profit on a repair the size of your little fingernail, maybe you should seriously consider re-examing your business model.
No need at all for me to "re-examine my business model". My business is recording record profits! My expenses are extremely low so my $60 average is sweet. And I'll always seek to make it even sweeter by increasing my profit margins anyway I can. I've been a successful business man all my life. I've worked in sales all my life and grew up with a father who was a very prominent and succesful sales professional. Sorry Puka Pau but try as you may you arent going to teach me anything about business, success, profits, or sales.
I'm amused by the fact that you think that by me averaging $60 per job, I must be doing something wrong!
Maybe I should lower my price, increase my expenses, extend my territory, work less hours, and give what's left to charity?
I'm surprised that someone as experienced as you would continue to mis-construe my posts. If you would take the time to absorb what I've said you could have saved yourself about 50% of your replies. I'm suggesting that you become more rather than less efficient and profitable, not less. And every successful business person realizes that increasing market share increases profitability. However, you just can't push a rope; some markets are heavily price-sensitive. You can choose to address that or not. If not, you need additional profit centers that give you what you need.
My point about billing insurance is this: there are some markets that will not accept a price increase just because you want to increase it - and insurance is one such market. Don't believe me? Next time you bill a network or an insurance company bill them the inflation-adjusted price of $100 and see what happens.
Taking at face value what you said about your father, you possibly could have let a little more of his experience rub off on you if only because what every successful salesperson learns pretty much on day one chapter one page one is NOT to be confrontational or defensive.
Haven't misconstrued a thing. Don't need extra profit centers. Not pushing a rope. Already have what I need and intend to get more. Already increase profit margins in a realistic way based on market factors and operating efficiently. Not stupid so wouldn't waste my time doing something stupid like over-billing an insurance company. Successful without laying down and being passive. Day one, page one, chapter one.......that's just a feel good theory. Sometimes you just re-write the book.
Thanks for your business advice Puka Pau. I will sleep easier now!
