THE 21ST CENTURY
IS GOING TO BRING A LOT TO OUR INDUSTRY. MORE HIGH-TECH CARS, MORE
COOPABLE ADVERTISING PROGRAMS, A GROWING SHORTAGE OF SKILLED TECHS
AND …TIERED LABOR RATES!
Before you say
no to the thought of tiered labor rates, let me share some facts with
you. First of all, as you know the competition is continuing to heat
up and good isn't good enough anymore. The motoring public has many
choices when it comes to who's going to service their automobile.
The second thing I'd like to point out is this. Through the power
of today's media the entire world is starting to share many similar
beliefs, and one of those beliefs is built around value. You see,
not long ago it was chic to spend a lot of money and buy quality at
any price. Mercedes held fast to their premium pricing and companies
like Nordstrom's shot to the top. But today times have changed. Mercedes
has now become more competitive in price, Nordstrom's now offers price
guarantees, and there's no question we are moving toward a "value"
driven society looking for the best bang for their buck.
I would also like
you to think about this. As vehicles become more sophisticated your
costs are going to rise. The equipment you're going to need to diagnose,
and the people you'll need are both going to cost you more in the
coming years. So before you start scratching your head and wondering
where I'm going with this, you need to accept these facts: We are
moving toward a more competitive era, the motoring public is going
to be more price sensitive, and at the same time your cost of operation
is going to go up substantially.
So if all
this make sense to you, then you need to think about this. As
your cost of operation continues to rise you'll need to raise
your labor rate in order to continue operating your business.
The new equipment you'll need to diagnose and repair late model
vehicles, information systems such as the Mitchell Systems,
technical support programs and skilled technicians to operate
the equipment will all have a financial impact on your business.
There's no question. Your labor rate will have to rise. But
here's the problem. As you raise your labor rate in consideration
of today's high tech automobiles, what are you going to do when
all someone needs is a cooling system service or an oil change?
Are you going to charge them the same labor rate you charge
for diagnosing a drivability problem? To put it another way,
are you going to charge them $87.00 an hour to change their
oil? Because if you do, you might get the sale, but odds are
you'll never see the customer again. It's time for you to step
ahead of your competition. It's time for you to have tiered
labor rates for different levels of service. One rate for low
skilled services, another rate for low skilled repairs, another
rate for high-tech repairs and another rate for diagnosis.
As we move toward
the next millennia all successful business people will have
one thing in common. They'll all know we're quickly moving toward
a value driven society. The great doctors, the great lawyers
and many of the great auto service center operators have already
taken the step and implemented tiered pricing. Now it's your
turn to build a 21st century value driven business that'll put
your competition … right out of business.
Employment
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