Mitch Schneider’s “So…What’s on the Menu” article that ran on June 18, has received quite a few responses from Autocarepro:news readers. The article, which can be viewed HERE, addresses “loss leader” advertising and menu pricing.
Note: All the readers’ responses and Mitch’s replies can be viewed by clicking HERE and scrolling to the end of article. Feel free to add your opinion to the discussion.
Here are a couple of the reader comments Mitch Schneider received:
Here at our shop, we have one thing we consider a loss-leader, our oil change services. More or less you could say, price locked or frozen. We looked at our cost for the parts necessary and Technicians cost/time and just a tic of profit. We still don’t have the cheapest oil change in town (which includes a vehicle inspection), but, then again, we don’t want to. And our customers seemed pleased at the reasonable cost of this service. So, why do we call it our loss-leader? Because it is. But we are wanting to get the customers in here, show them who we are, what we do, what we believe. And you understand the Technician’s side of this, find what the customer/vehicle needs.
James W. Gordon
My view point on loss leaders and menu pricing is that you generally don’t want to offer these services because the only thing you can menu price these days are oil changes and usually about 10% of those will turn into a loss leader if your not careful where you set your price point. When our customers call in for a price it’s usually because they don’t know what else to ask. WE DON’T give prices over the phone. We ask them what type of concern they’re having, and tell them that today’s vehicles are all different and very complex, and each vehicle needs to be inspected by an ASE certified technician. We ask them to bring their car in for a FREE INSPECTION and a NO CHARGE ESTIMATE. If they are serious about quality and not just looking for the cheapest price they will either bring in the car now or set an appointment at their earliest time of convenience. This will allow you to control your phone time and increase your car count.
Bartel’s Auto Clinic