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Re: What do you consider normal practice? Kinda long...


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Posted by EX 450 Owner on December 29, 2011 at 07:36:39 from (173.190.164.40):

In Reply to: What do you consider normal practice? Kinda long... posted by Bob Huntress on December 28, 2011 at 18:51:34:

As you know to stay in a business of any kind you have to pay your expenses and have a little left over to pay yourself a living wage. You have to recover the cost of getting your vehicle to and from the job it just a matter of how you bill it out.

People watch 60 minutes and are always looking for a scam from a service person, another problem is that in almost any trade they can get on the internet and look up the cost of any part you can imagine and often that price is lower than you can buy it through your local sources. Never mind that they would have to pay shipping, wait for a number of days, and many time parts bought over the internet carry no manufactures warranty. They will still use that cost as a comparison so it is hard to make money on parts markup these days.

We use to hide some of the mileage, vehicle and inventory costs in parts markup just because it was easier than trying to explain to a customer about your vehicle insurance, fuel, maintenance, inventory, and eventual replacement cost as an actual cost that you incurred to just park your service vehicle in their driveway.

I think your way is honest but each customer will perceive it differently, regardless of who services this guy’s stuff he is paying the cost of setting that service vehicle in his drive way. The cost may be hidden in parts markup, in hourly labor charge, it may be hidden service call charge but the customer is going to have to foot that bill. Trying to get the customer to understand this is sometimes difficult.


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