Looking for input from experienced shop owners

Slick · November 4, 2014

Hi everyone. To start off, I haven't been around much at all the past year or so, and now that things are starting to slow down a bit, I imagine I will be spending some more time around here. To all those that know me, I look forward to catching up with you, and for those that don't...well, you really don't matter anyway so.... :spit Just kidding. I look forward to getting to know you guys too. Now, onto the discussion:

First off, I have been running a tint shop solo for well over 20 years now. I run it solo because I got sick of either training my up and coming competition, or wasting time with people who were only looking for a paycheck, not caring about quality or the reputation of my shop. I keep myself very busy during the spring/summer/fall seasons. In fact it is rare that I am not booked out for at least a week ahead. Most of my work (80% give or take) is dealer work, and I love it. I know there are many on here who hate dealer work, but if you saw the situation/relationship I have with my dealers, you would understand why I love working with them.

It seems in recent years, I have almost plateaued as far as speed and income goes. Although every year there is still increases, they are decreasing. I have good pricing and don't think I could raise prices too much more. I have been able to swing some deals and reduce my costs. But now I am thinking of ways to increase profits. I currently work 8-5 Mon.-Fri. and don't want to change that...I work to live, not live to work.

One idea I have been tossing around is graduated pricing. As I say, from about March til October, I am booked solid for at least a week in advance. Now, if you do dealer work, you know that they usually want cars done within a relatively short period of time. My dealers are no different, but continue to fully support my business even though they have to wait extended periods. What I am thinking of doing is graduated pricing for those who are in a bigger rush during the busy season. Example: if you are willing to wait until my next regular appointment, price A. If you want to cut the time in half...say 3 day waiting period, price B (which would be say price A+10%). 48 hour demand time-price C (price A+20%). 24 hour turn around-price D (price A+30%).

In order to accommodate the shorter wait periods, as well as the schedule I am wanting to work, I would probably start off in the spring, booking one less car per day. That would be risking loosing out on the price of a car per day if nobody wanted to pay the increased rate for any given day, but I believe that it may work out that the risk would be minimal.

Now for your input. Have any of you ever tried this? What do you think? Any input you experienced guys could give, I would appreciate it. I think I have looked at this from all angles but maybe not, so your input would be appreciated.

Also, I would appreciate comments on this idea, not ideas like work longer hours, hire other people, etc.

Thanks guys.... :thumb

Rjsi · November 4, 2014

Think about it... the impact it may have if it goes the other way around...although is what many companies do if you need work done in a pinch, it may be seen as a weakness in your business plan by the faster, younger and up-coming tinter behind you - that is money hungry and craving the establishment around you.

Why not offer service tiers? Price your service, not your time.

3 yr warranty

7 yr warranty

LifeTime Color Stable

Ceramic

Slick · November 4, 2014

I have already done tiered pricing years ago.

Lets put it this way, at this point, I am not overly concerned about the younger, up and coming tinter....

Jake · November 4, 2014

Good to see you back around Slick. You may not know me, but I have been around awhile and know you from your posts. I am at around 15 years at owning my job. I have 3 other employee's than myself. I will admit I think of giving everyone the boot at times, and going solo. So far this year my gross is up 40k from last year with one extra person in the shop (shop helper/runner). But all that has done for me is add more stress as my net profit is down 5k. But on the bright side it has got me out of doing so much of the actual labor. I still do quiet a bit but it has helped out. My 2 installers are both in school so schedules change constantly , and that's a battle as I myself do mostly dealer work, and need people here at all times. My plan is to try and scale down to one other good installer that wants to do this full time for a long time, pay them well, plus myself, and 1 shop helper. Does not really answer your question but, its just a look into another shops experience.

On another note more to what your thinking of. I had a guy try to get in same day . I told him no possible way I could do it. He was very persistent as was I. He then offers a good amount more money if I get him in right away. It was close to double.I said for that I would make it happen. He then got upset and said he just wanted to see if I really would be able to do it but just didn't want to try hard enough to get him in. Not the exact same situation, but something to think about.

RockyDaz · November 4, 2014

No idea Slick, sounds like something you might have to trial and see how it goes for your situation, but good to see your back

Bham · November 4, 2014

Over the last 20 years, I've been an employee, a commissioned partner and a shop owner(5 full years) and over those years, after dealing with different pricing levels, whether it be for different films or different warranties. I have gone with the simpler the better.

I try to keep my pricing the same for the general public and for dealerships. These are 2 different types of customers and they both don't understand(or want to understand) the way the other one works. Trying to manage all that different scheduling doesn't sound fun to me either. I don't offer a bunch of different shades or styles of film(but that is because that is what works for my customers in my area). Basic charcoal lifetime warranty film in about 4 shades with windshield options. I don't even offer different pricing for different shades. I price by the car and that's it.(with some exceptions like limo all the way around on a Suburban, there's always exceptions)..

Being a solo shop man myself, I get tired of standing with my customers repeating myself or waiting on them to figure out what shade is going to be best, so on and so forth, While I am standing there waiting and listening when I need to be tinting. Also, to many options of color and style makes it to easy to change your mind or complain about the way it looks after install. Keeping it simple in the beginning makes it easier in the end. I don't know how many different styles of film you use and how different you have to price because of this, but offering a bunch of different pricing just hasn't worked for me. Also my dealerships want the pricing to be consistent and LOW, and aren't going to pay extra for a little bit quicker install. And my everyday customers will want to pick the hell out of an install they just paid more for to be done quicker, so I would want to avoid that situation also.

What happens when you decide to charge someone extra for a better schedule and that gets interrupted and you still have to charge them less anyway because something happened and it took longer. And you are going to have reschedule another customer to put one in front, that might not make the customer who had the appointment already very happy. If all of these people talk to each other and realize they all paid a different price for basically the same work, somebody is not going to be happy.

Just my :twocents

Rjsi · November 4, 2014

This kept me thinking... what are you doing with the walk-ins? turn them away and re-schedule them at the lower price?

Slick · November 4, 2014

This kept me thinking... what are you doing with the walk-ins? turn them away and re-schedule them at the lower price?

turn them away and reschedule....reg. price.

Slick · November 4, 2014

Over the last 20 years, I've been an employee, a commissioned partner and a shop owner(5 full years) and over those years, after dealing with different pricing levels, whether it be for different films or different warranties. I have gone with the simpler the better.

I try to keep my pricing the same for the general public and for dealerships. These are 2 different types of customers and they both don't understand(or want to understand) the way the other one works. Trying to manage all that different scheduling doesn't sound fun to me either. I don't offer a bunch of different shades or styles of film(but that is because that is what works for my customers in my area). Basic charcoal lifetime warranty film in about 4 shades with windshield options. I don't even offer different pricing for different shades. I price by the car and that's it.(with some exceptions like limo all the way around on a Suburban, there's always exceptions)..

Being a solo shop man myself, I get tired of standing with my customers repeating myself or waiting on them to figure out what shade is going to be best, so on and so forth, While I am standing there waiting and listening when I need to be tinting. Also, to many options of color and style makes it to easy to change your mind or complain about the way it looks after install. Keeping it simple in the beginning makes it easier in the end. I don't know how many different styles of film you use and how different you have to price because of this, but offering a bunch of different pricing just hasn't worked for me. Also my dealerships want the pricing to be consistent and LOW, and aren't going to pay extra for a little bit quicker install. And my everyday customers will want to pick the hell out of an install they just paid more for to be done quicker, so I would want to avoid that situation also.

What happens when you decide to charge someone extra for a better schedule and that gets interrupted and you still have to charge them less anyway because something happened and it took longer. And you are going to have reschedule another customer to put one in front, that might not make the customer who had the appointment already very happy. If all of these people talk to each other and realize they all paid a different price for basically the same work, somebody is not going to be happy.

Just my

I don't have time right now to address all of what you said, but one thing is, this service would only be made available to my dealers. They would all know they will be getting adjusted pricing according to the service they request...