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bobkyllo
Orange Level Joined: 14 Sep 2009 Location: minnesota Points: 1545 |
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Posted: 28 Feb 2021 at 2:59pm |
So I'll continue this business thread that I have going.
Yesterday dad and I were doing bills which got us talking about how we do things and the costs associated with doing business. So here are some questions for any of you guys that operate or work in a service type industry not limited to just auto work. When a customer comes in our shop for say a simple oil change and a good once over fix it if it needs it. So I write the job in the notebook/ appointment book on the desk. Bring in the vehicle do the oil change but notice the air filter is bad. Go up to the parts store and get one. Here comes my question. Do you guys run over to the service desk and note that right away or do you drag around a note pad to put thoughts on? Right now i try to just remember it but I think a few times some stuff slips my memory. Next thought fits with the first question. So say a flat tire comes in, I fix it while the customer waits. As I'm finishing another customer shows up for something. The original customer says to charge his bill and leaves with his tire and I proceeded to help the next customer.how do you guys handle something like that. Do you force the next customer to wait while you note what you just done? Last but not least chemicals, shop rags, silicone, etc is starting to get costly. In the past I'd never charge a shop supply. I don't feel right about it. For some reason I feel it's a rip off to the customer. But at the same time it's cutting into my profit. What are your thoughts on it. What do you guys charge? |
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DMiller
Orange Level Access Joined: 14 Sep 2009 Location: Hermann, Mo Points: 30971 |
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ALWAYS take the moment to write it down, does NOT cost customers in the long run for if they feel put out you did not need their grief anyway.
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steve(ill)
Orange Level Access Joined: 11 Sep 2009 Location: illinois Points: 80828 |
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YEP... i would take a minute to write it down as a go.. You have to do it sometime, might as well be right now while your thinking of it.
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Like them all, but love the "B"s.
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Dirt Farmer
Silver Level Access Joined: 15 Sep 2020 Location: Illinois Points: 348 |
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Always write stuff down, technically you weren't done with the first customer till you wrote the ticket or wrote the remarks, could loose an associated sale or concern. Side note, if the phone rings, answer it cause the person standing there is already committed to doing business with you as they are in your facility where as the person on the phone is searching to conduct business and may be a new client. If the call is going to be long tell them you will call them right back and take care of the customer that is waiting. Just my $.02
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JohnColo
Orange Level Joined: 03 Apr 2020 Location: Niwot, CO Points: 1258 |
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The shop I have stuff done at has a misc charge of about 15% for all the odds and ends. Can't say I blame them but it can get expensive on a big job, although I think they have a set charge up to something, then no percent after that. Had the clutch adjusted on my Freightliner as I had never done one like it before, didn't charge much but did add the 15%, told me, with a laugh, that's the instruction fee, as now that I knew how to do it I wouldn't be back for another adjustment.
Edited by JohnColo - 28 Feb 2021 at 6:09pm |
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john(MI)
Orange Level Joined: 12 Sep 2009 Location: SE MI Points: 9262 |
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Carry a clipboard with a notepad on it and a bungie cord hook on it. Before you start, write down everything you are supposed to do. As you go along note anything else you do or needs done. when it rolls out the door, put the paper on the desk. The hook is to hang it under the hood or on the frame so it's conveniant to get to and big enough to catch your eye so you remember! Around here, if you are a business doing what you do, Auto Parts stores deliver the parts you need, to you.
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D14, D17, 5020, 612H, CASE 446
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jaybmiller
Orange Level Access Joined: 12 Sep 2009 Location: Greensville,Ont Points: 22399 |
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if you don't write it down, you'll not get paid for it !!! Way too easy to get sidetracked and forget 'what stuff went where'... Shop supplies, YES charge for them. I built robots and servos for a guy years ago. He didn't KNOW what each servo cost,just that he made a LOT of money. I cut code to SHOW what a 'servo' was made of and included 'shop supplies' like heat shrink tubing, solder,tieraps, fuses,etc. While it only added $20 to the $500 servo, over a year it was $2000 'lost' when not written down ! That was just one product of dozens...
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3 D-14s,A-C forklift, B-112
Kubota BX23S lil' TOOT( The Other Orange Tractor) Never burn your bridges, unless you can walk on water |
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Grayray
Orange Level Access Joined: 12 Sep 2009 Location: Ambridge PA Points: 3810 |
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I was told years ago that "IF IT ISN'T IN WRITING, IT DOESN'T EXIST". Good advice. Document everything. If not, it will come back to bite you in the end.
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dstratton
Admin Group Joined: 09 Sep 2009 Location: SW MO Points: 371 |
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Lot's of good advice above. Certainly take a moment to record everything. I've seen consumables added as a line item at some places. I think maybe it's better just to build that into your hourly rate. It's been my experience that many small businesses don't adequately consider all of their costs. You are in business to make a living at least so don't be afraid to charge for what you do. On the flip side, be ready to eat some cost when you make a mistake. There are places I'm very loyal to because they've owned up to and fixed mistakes on their own dime.
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Darin Stratton 3000toys.com - b2bReplicas.com - AllisChalmers.com ============================================================ |
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Ray54
Orange Level Access Joined: 22 Nov 2009 Location: Paso Robles, Ca Points: 4498 |
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I have been the one waiting, and the one calling, as well as the one wanting out the door. But unless you have a prefect memory you need to write something down. Hopefully just a bit of "short hand" to jog your memory as you get to the end of the day and put it down so others can make sense of it. I did a lot of by the hour "farming", always caused myself trouble not writing things down as I hurried from one job to the next.
You need to make sure your making out as well as treating the customer well. The fact your looking for input tells me your looking to be fair to the customer. There is going to be few that will never be happy, so you need to be able to just write them off. I understand the wanting to make people happy, but those few you just need to walk away.They will not happy unless you pay them for the pirvilege of repairing there ride.
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bobkyllo
Orange Level Joined: 14 Sep 2009 Location: minnesota Points: 1545 |
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I feel I've been very fair to the customers over the years. I just don't want to be taken advantage of either. That's why I say I struggle with the shop supply charge. I'm not sure how to explain it but it doesn't feel right to me. But I also understand a nickel here a dime there over the year it adds up to some serious money.
I like the clip board idea. Like you all have said just something to put notes on to jog my memory later. |
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Hubert (Ga)engine7
Orange Level Joined: 12 Sep 2009 Location: Jackson Cnty,GA Points: 6278 |
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The job is not done until the paperwork is done!!! Finish with the first customer before you start on the next. As for the customer standing there and the one calling, acknowledge both and if the phone call can be brief get it done. Otherwise get their number and call them back. True the person standing there is already committed to doing business with you but will he be committed to coming back if he is ignored? As for the supplies charge, it is a cost of operating your business so don't feel bad about charging for it. JMHO
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Just an old country boy saved by the grace of God.
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HD6GTOM
Orange Level Joined: 30 Nov 2009 Location: MADISON CO IA Points: 6627 |
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We always wrote it down. Too easy to forget. Especially now that I am 30+ years older than when I started my last business.
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Pat the Plumber CIL
Orange Level Joined: 11 Sep 2009 Location: Springfield,Il Points: 4770 |
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Acknowledge and communicate as customers come in or call . If I am at a customer's home and working I will answer my phone but as quickly as possible tell them I am working and need to talk at another time. Texting has been a blessing for my business. Loyal customers of mine know it is much better to text me than call during the day. An answering machine that you can turn on when busy that has a message letting them know you are busy and will call them back as soon as possible, tell them to call back immediately if an emergency. Acknowledge customers as soon as they come in . Communicate as quickly as possible you are busy and will get to them as soon as possible . Most people understand as long as you are honest and act like you care . Hard to write every little thing down when busy but if I don't record it I will never remember it.
Every company I ever worked for has had some kind of Service charge that was for covering little things you can't charge for ; glue , caulk , tape, solder , etc , etc . Add up what you think you have for a year of supplies. Divide by the number of customers you have in a year. Double that and that should be what you charge as a service charge Edited by Pat the Plumber CIL - 03 Mar 2021 at 1:20pm |
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You only need to know 3 things to be a plumber;Crap rolls down hill,Hot is on the left and Don't bite your fingernails
1964 D-17 SIV 3 Pt.WF,1964 D-15 Ser II 3pt.WF ,1960 D-17 SI NF,1956 WD 45 WF. |
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Coke-in-MN
Orange Level Access Joined: 12 Sep 2009 Location: Afton MN Points: 41549 |
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this is where a Work Order comes in - a form with carbon copy - customer info on top, work to be done listed next , then materials list and time listed for you to keep track of .
Yes the add on % or shop supplies seems to make customers look at that extra charge as you are gouging them but it's a necessary part of any job . I use to just charge a hourly rate for equipment use on a jobsite , but then on small short hour jobs I found it was costing me more in travel than I made for the job so added a minimum travel charge on jobs so billing was machine time and $45 travel time . |
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Faith isn't a jump in the dark. It is a walk in the light. Faith is not guessing; it is knowing something.
"Challenges are what make life interesting; overcoming them is what makes life meaningful." |
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festus51
Orange Level Access Joined: 26 Mar 2017 Location: Osage City, KS Points: 1639 |
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When doing dozer work I always charge for hauling my dozer. Some close jobs I don't charge as much. Some people squawk at the hauling charge then I have to explain the amount of time to load and tie down. And the expense to tag and insure kinda like your shop expenses.
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We the unwilling Led by the unqualified Doing the impossible for the Ungrateful
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SteveM C/IL
Orange Level Access Joined: 12 Sep 2009 Location: Shelbyville IL Points: 8218 |
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Don't think you'll get out of any dealer shop without some shop supply and enviromental charges. That's what it takes these days. Do good work and don't be afraid to charge for it. I know a builder and a excavator who charge the most for what they do....they are covered up. (but they are also the best!)
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bobkyllo
Orange Level Joined: 14 Sep 2009 Location: minnesota Points: 1545 |
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Thank you guys for all your help and thoughts.
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Emmablaker
Bronze Level Joined: 05 May 2021 Location: USA Points: 1 |
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Business organization, for me, is the hardest thing to do. You have to know how the entire structure of the business will work. Also, the most important thing is to have the necessary employees that will do their job correctly. I opened a small car rental last week. It was an arduous process to open this business. Anyway, it's not the end. I ordered today a business doorbell with an alarm system. In this way, I will know whenever someone entered and left the shop. It's delicious and essential nowadays to be safe.
Edited by Emmablaker - 07 May 2021 at 9:14am |
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Gary
Orange Level Access Joined: 13 Sep 2009 Location: Peterborough,On Points: 5352 |
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Koran You'd make a very good Politician, or are you already one. You say a whole lot of words that add up to nothing. G |
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steve(ill)
Orange Level Access Joined: 11 Sep 2009 Location: illinois Points: 80828 |
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Emma, Kevin and Korann are all SPAMMERS... Nothing they say is ON TOPIC... just selling worthless BS.
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Like them all, but love the "B"s.
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dr p
Orange Level Joined: 24 Feb 2019 Location: new york Points: 1144 |
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My business is a little different. So I don't know how well it follows toward your business. I start with an idea of how much I want to make and how many hours I want to work. That will give me an idea of how I need to clear an hour. You have an idea of what your overhead is so that should tell what you need to charge an hour. I don't charge patients for little stuff, it frees me up from little notes. A mentor told me you always paid if you treat someone right. Sometimes you get paid in cash but sometimes you get paid in good will and that can be worth a lot more
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DMiller
Orange Level Access Joined: 14 Sep 2009 Location: Hermann, Mo Points: 30971 |
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Oh and DON'T try to use the formulas shown to calculate your farming profits, Negatives have never been popular!!
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dr p
Orange Level Joined: 24 Feb 2019 Location: new york Points: 1144 |
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No, certainly not! Lol! But milk production is the most screwed up economic model ever.
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