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Not Billing for Shop Supplies (Free Sample Tip from Premium Member Area)
There’s certainly nothing wrong with not having a shop supply charge at the end of your invoice. Instead, some shops itemize every little thing. In some areas, a supply charge at the end of the invoice might be illegal. But, are you taking advantage of what you are not doing? Do you have written in large capital letters near the bottom of your invoice:
***SHOP SUPPLIES – NO CHARGE***
Why not let everyone know that you are not tacking on extras at the end of their bill? Some people hate added items like that and will favor shops without that charge at the bottom – and tell their friends.
#autorepairshopsupplies
Copyright © 2003 – 2019 Automotive Management Network
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2 Replies
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Shop supplies…how to collect? Many years ago, the State of Florida installed a surprising 25% Workman’s Comp rate increase one year followed by yet another 30% increase the following year [rate increases were not based on claims from my company], I felt compelled to pass such rate increases on to my customers. The recovery of such outlandish rate increases was essential to the continued prosperity of our company and would determine whether or not we would continue to survive. Our goal was – as it has always been – to provide the highest level of Customer service, provide ongoing education for our service Teams to learn new technologies and stay the course. This year we’re celebrating our 48th year. Also, winning the area’s Best Awards 9 years in a row over all local independent, chain and new car service departments. More proudly, we were honored by the BBB in 2017 as Winner of the Torch Award for Ethics in Business for all (types) in two surrounding counties for a company our size. Back to Shop Supplies: I was exercising in the gym one morning and came up with what (I believed) a unique method to recover a portion of these rate increases while also providing my customers with the truth. So rather than add a few dollars to each parts invoice (as I’m sure most shop owners do), we created a line-item charge. This charge is listed as “InsAdjChg” and is shown at the bottom of every RO quoted [pre-sales-tax] and automatically figured within the quote created at 6.5% parts & labor limited to $200. Whenever we have a customer ask about this charge, we are eager to explain that – just as Gulf Power adds its “Fuel Adjustment Charge” to our area’s monthly electric bill (based on daily energy-fuels costs), we wanted to be open [never hide such cost in parts or labor] to help them understand that these charges cover the essentials needed to maintain a clean facility, educate technicians, meet EPA requirement and, more importantly, ensure our company remains in the community so that the next time they need services, we’ll be there for them. On occasion, we have credited part of these charges (if the job is unexpectedly higher than estimated), but given that we quote each and every job total “Out-The-Door,” we have very few inquires and are always eager to explain why we chose not to hide such costs. Since November 2017, we have accumulated more than 500 5-Star reviews and are enjoying an average of 46% gain in car count…all due to three marketing initiatives. For those of you who doubt these facts, we have 156 months management meetings and all data re the operation of our company. We are not afraid to swim upstream. As Einstein stated, Insanity is…
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There’s certainly nothing wrong with not having a shop supply charge at the end of your invoice. Instead, some shops itemize every little thing. In some areas, a supply charge at the end of the invoice might be illegal. But, are you taking advantage of what you are not doing? Do you have written in large capital letters near the bottom of your invoice:
***SHOP SUPPLIES – NO CHARGE***
Why not let everyone know that you are not tacking on extras at the end of their bill? Some people hate added items like that and will favor shops without that charge at the bottom – and tell their friends.
#autorepairshopsupplies
Copyright © 2003 – 2019 Automotive Management Network
Shop supplies…how to collect?
Many years ago, the State of Florida installed a surprising 25% Workman’s Comp rate increase one year followed by yet another 30% increase the following year [rate increases were not based on claims from my company], I felt compelled to pass such rate increases on to my customers.
The recovery of such outlandish rate increases was essential to the continued prosperity of our company and would determine whether or not we would continue to survive. Our goal was – as it has always been – to provide the highest level of Customer service, provide ongoing education for our service Teams to learn new technologies and stay the course. This year we’re celebrating our 48th year. Also, winning the area’s Best Awards 9 years in a row over all local independent, chain and new car service departments. More proudly, we were honored by the BBB in 2017 as Winner of the Torch Award for Ethics in Business for all (types) in two surrounding counties for a company our size.
Back to Shop Supplies:
I was exercising in the gym one morning and came up with what (I believed) a unique method to recover a portion of these rate increases while also providing my customers with the truth. So rather than add a few dollars to each parts invoice (as I’m sure most shop owners do), we created a line-item charge. This charge is listed as “InsAdjChg” and is shown at the bottom of every RO quoted [pre-sales-tax] and automatically figured within the quote created at 6.5% parts & labor limited to $200.
Whenever we have a customer ask about this charge, we are eager to explain that – just as Gulf Power adds its “Fuel Adjustment Charge” to our area’s monthly electric bill (based on daily energy-fuels costs), we wanted to be open [never hide such cost in parts or labor] to help them understand that these charges cover the essentials needed to maintain a clean facility, educate technicians, meet EPA requirement and, more importantly, ensure our company remains in the community so that the next time they need services, we’ll be there for them.
On occasion, we have credited part of these charges (if the job is unexpectedly higher than estimated), but given that we quote each and every job total “Out-The-Door,” we have very few inquires and are always eager to explain why we chose not to hide such costs.
Since November 2017, we have accumulated more than 500 5-Star reviews and are enjoying an average of 46% gain in car count…all due to three marketing initiatives. For those of you who doubt these facts, we have 156 months management meetings and all data re the operation of our company.
We are not afraid to swim upstream. As Einstein stated, Insanity is…
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