It was late
in the afternoon after a busy Monday. The phone rings and I’m quick to answer
it.
“I have a
late model Audi and need some work. What I’m looking for is to find a repair
shop where I can start a relationship. I want an auto repair mechanic who’s
work I can trust, and prices will be the best and lowest. As a matter of fact,
I want to be able to bring my own parts so I can save some money. Is that you?”
“But wait! I
actually have three Audis all late models, If you can earn my trust, then you
get all three cars to work on!”
Sir, I said,
let me start by thanking you for giving me the opportunity to bid for your
repairs. However, I’d like to explain what it takes for me to continue in
business for the long run and be able to back up all the work we would do on
your vehicles.
The formula
to stay in business is relatively simple. First, of course, you need clients! But when it comes to pricing, you can break
the pricing principle once or twice and in the short run it appears to not be
detrimental. But, if you make it a habit, you’ll soon find yourself like all
the other shops that followed those steps. Out of business!
I explained that
the comments he started out with were at odds with each other. For us to have a
healthy working relationship, both parties must understand and respect each other’s
business practices. If you want me to work on your A4, your Q5 or your A7 Audi,
then you are going to have to understand that if I don’t maintain my pricing
matrix, we are not going to have a long term relationship. Simply because I will soon be out of
business.
Will you as
a consumer be able to find someone who will give you lower prices? The answer
is an absolute yes! But I know they
won’t be able to match what I have to offer to you as a whole. You see, part of the charges are for updating
and maintaining the equipment, training for technicians and service writers, and
upgrading the infrastructure and facilities to accommodate latest technology. I
knew a low-price competitor who would pray before using their tire changer when
they were working on cars with fancy wheels.
When I asked
him why, he said “I can’t afford a new machine and this one tends to cause
damage to some of the wheels, I hope and pray this is not this one”
Is this what
you are looking for I asked the client on the phone?
“Wow, I
didn’t know!”
To date, the
client doesn’t bring his parts (we provide them with a full two-year nationwide
warranty), he makes appointments and keeps them, has posted a great review of
our business and, last but not least, pays on time without griping about it.
A year has
passed, and I asked him how the relationship was going.
“I don’t
have to think about it. I love the
transparency and the consistency of your good work. I’m glad I took your
challenge a year ago”
P.S. I
remember well when I took the call, my reaction after hearing the first few
sentences, was to thank him and hang up. I’m really glad I didn’t.