Shop rate has a VERY significant impact on your shop’s overall profitability. Why give up more profit than necessary?
The common story is “I charge what the market will bear”. Do customers look at shop rates when selecting a shop?
Not as much as you think!
The reality is customers select repair shops on a variety criteria.
- Trust & ConfidenceTrust in the service and repair facility is the primary consideration for anyone getting their rig fixed. Customers want to know they are getting quality work at a fair price. Does the facility and operation convey a sense of quality and professionalism?
- LocationLocation is often key. If the repair facility is out of the way, or is difficult to access, many truck owners will migrate to the business with the better location.
- Ease of doing businessTruck owners prefer doing business with facilities that are easy to do business with. Value added service like periodic service reminders, electronic work orders and statements, and easy scheduling go a long way to improving repeat business.
- Shop RateTruck owners do pay attention to shop rates but, many shops are able to get a premium shop rate for premium work.
How should you be setting your shop rate?
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