Dollars per windshield repair?

[screenman]

Amazing how a very simple question can cause so much stress.

Price raise going in on 1st January.

[t4k]

I know....this is crazy.

[clearquest]

I am a dedicated business owner/operator and full-time wsr technician. It provides for my family, puts food on the table, pays the bills and provides for the extras we enjoy. It helps with my kids college tuition. So I'm not a leisurely operator or a hobbyist. I don't quit early and drink Pina Coladas on the beaches of Cabo Wabo. Anyone who thinks that dollars per wsr doesn't matter is either foolish or doesn't care that much about making more money. If you are increasing the dollars per sale without increasing your cost of doing business you are making more money, If you are increasing those sales dollars while reducing your expenses that's even better. I have reduced the expenses that go along with mobile service by limiting distance and charging a fuel surcharge. I also now do much more in-shop service as my residence/shop are at the same location at a high visibility & high traffic area. My insurance referal work has also increased dramatically over the last few years. I take what I do seriously and always strive to meet my personal sales goals. That's what keeps me at work during the afternoon even though I've knocked out my sales goal with a killer morning.

[Frank EU]

Amazing how a very simple question can cause so much stress.

Price raise going in on 1st January.

It is a very simple question indeed Graham.
If we only look back to the time when we started out in this trade.....what was the price for a gallon gas back than?
And what is the price today?
The very same, of course, applies to anything else, your cost of living has changed so much, it is only a perfect normal thing to do the same thing and to be raising your prices too.
Cost-saving is nice, but it should not, never, come out of your own pocket, affecting your own revenues/profits, that simply is (imo) not good business.
With that being said, one can continue to be using the ''cost-saving'' factor as an USP (in the overall marketing-mix), but it should never be your main USP and always be used against the cost (total cost) of a replacement.

We have been raising our prices too. Simply because it is good for business and it only makes sense (ANY customer understands it, oh, btw: is there any insurance company lowering it's annual premiums....? >there you go!).

This whole thing boils down to the same old problem....selling a (any) service/product.
If you cannot sell, you simply fight with your ''lowest price in town''.
That is so not us.

[screenman]

Nor me.

Two for the price of three as one of my customers once said about me, that was about 20 years ago and he still uses me now.

[clearquest]

It's always the guys doing the cheap repairs that say that the dollars per job don't matter. They try to justify it with this theory or that theory or some other nonsense of how they do so many repairs that low cost isnt an issue. I guess it's whatever floats your boat but isn't striving to make more money the reason why most of people are in business?

[puka pau]

So then we can assume that dollars per vehicle and/or dollars per hour is not as valid as net dollars in pocket. My perspective is that there are three ways to increase net income: Increase productivity, decrease operating expenses and increase price. Over the years I've done all three. However, you can't price yourself beyond your market. As an example, when insurance companies decided to waive the deductible and pay for repair about twenty or so years ago, the negotiated price was $55-65. It's still that today. Inflation adjusted, that $55-65 repair in 1990 +/- should be paying about $100.

Cheers;

Puka Pau

[Dr.Chipster]

It's always the guys doing the cheap repairs that say that the dollars per job don't matter. They try to justify it with this theory or that theory or some other nonsense of how they do so many repairs that low cost isnt an issue. I guess it's whatever floats your boat but isn't striving to make more money the reason why most of people are in business?

I guess since this topic doesn't seem to be going away anytime soon, I"ll give my two cents for what it's worth.
More money may be a reason, but the only reason? I think not. I know for me I chose this profession simply because I wanted more time. I worked a 9 to 5 JOB for years until I discovered I could make a days wages in a few hours. After that I was never the same. Now, I am not gone from my family 50 to 60 hrs a week. I also like the fact that I don't have to sit in boring meetings, I don't have someone giving me performance evaluations (wait I forgot about my wife), I get to pick and choose the jobs I want to do. These are just my reasons. I want to earn a living and I am not looking to get rich. I just want to provide the best service for my customer at a fair price. I would probably be what you guys call a lowballer, but there are a few companies in my corner of the world that repalce windshields all day long for just over a 100 bucks. I called a company the other day for a replacement on my Tahoe and I can get it done for 128.00 plus tax. (techna glass). They are also all over my city with with their famous $19.95 windshield repair with lifetime guarantee and sometimes put out a coupon for 10 bucks off that price. So I gotta sell my hind parts off to justify my cost. I don't get them all, but I fight for each and every one of them. I am becoming a better salesman though, and when I don't get a sale I don't sweat it like I did in the beginning.
OK, I am starting to ramble so I'll sign off now. This has been a really interesting thread.

[clearquest]

Puke Pau.

The only valid justification I see you give to having such low dollars per job is that your market won't bear a higher price. If that's the case, I'm sorry that you are unable to charge more for your services and I'm thankful that I am.

Cheers

[clearquest]

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.