Posted by Buzzman72 on April 27, 2011 at 17:05:29 from (74.129.205.211):
In Reply to: O/T - Shop Fee RANT posted by jCarroll on April 27, 2011 at 07:08:49:
When I worked at one dealership, they had a $5,000-a-month parts and servic consultant who came in once a quarter, looked at the books, and told us how we were doing everything wrong.
The consultant told us to "sell value"...in other words, you would sell the alignment, and you would also disclose [but not TOO loudly] the shop materials fee, or whatever they call it today, as a separate charge. Bcause you were giving them "something of value," when you charged them for shop towels, hand cleaner, and the like.
Another shop where I worked had a different policy...they had a service "menu," and the parts and labor were NOT broken out separately for the customer. There was also NO shop materials fee. The customer was quoted the TOTAL price, less sales tax, so they could decide whether to do the service at our shop or not. One side of our "menu" had "packaged" services, ones we could discount when purchased together because of labor overlap.
The shop with the menu charged a higher shop labor rate [which was posted on a sign in the wall in the service writeup area], but unless you knew the "code" on the menu, the customer didn't know how much labor he was being charged for. [The "code" was the "cents" column of the menu. For example, full-service oil changes that paid the technician 0.3 hours were $34.03; a larger service that paid, say, 1.4 hours, was priced at $189.14...and so on]
So which shop was ripping off the customer? The one with the higher labor rate to include his shop supplies expenses, who quoted the total price...or the one who broke out everything separately to "sell value" to the customer?
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