Perceptions...

For me I don't pay much attention to the actual cost of the service as I trust the mechanic not to do stuff that isn't warranted.

When I first got my current car (second hand) I took it to the dealer for a service ($$). They told me the rear brakes needed urgent replacing and quoted something like $1400 to do it and I said no. The week after the service I got a letter in the mail saying the brakes needed urgent replacing and asking when I wanted to book it in, I ignored it (it is a dual cab ute normally with nothing in the back so the back brakes don't do too much anyway and I am light on the brakes when I drive).

Took it to the usual mechanic 10,000km later, 20,000km later and 30,000km later and each time he noted the rear brakes but said it is not worth doing now, can wait. About 35,000km I took the car in for him to look at another issue (wouldn't go into 4x4) and asked him to do the rear brakes, he fixed the 4x4 issue for free and said that the brakes don't need to be done yet so he didn't do them.

So to me he has plenty of opportunity to get more $$ off me but never has, so I always take my car there when due for a service and don't even ask for a quote beforehand.

This is not a small shop one man shop but part of a large franchise.

If I had a large job (eg recently replaced the clutch) to do I would still ring around a few shops and get quotes, if all are using the same parts would go with the cheapest.
 
Basic service should cost $200, and include engine oil and filter change, check of all other fluids (top up if necessary), check tyres and adjust pressure, brakes and lights.

Medium service should cost $350, and include engine oil and filter change, fuel filter change, air filter change, check and rotate tyres and adjust pressure, check of all other fluids (top up if necessary), check tyres, check/bleed brakes, check brake pads, check and adjust handbrake, check exhaust system, visual inspection of undercarriage, check/tension all visible belts.

Major service should cost $4-600, and include engine oil and filter change, fuel filter change, air filter change, check and rotate tyres and adjust pressure, flush/replace engine coolant, replace power steering fluid, replace brake fluids, check brake pads, check exhaust system, visual inspection of undercarriage, check/tension all visible belt.

Brake pad change, timing belt change, etc all extra, based on kit/parts and labour. My estimates are for common Australian, Japanese or Korean vehicle.

Services described above should be conducted in the following order:
Minor, Medium, Minor, Major
...then repeat from start.

I'm not a mechanic and will no doubt have missed some stuff, and my pricing is probably off the mark as well. This is just my opinion.
 
There is a comparison engine at http://www.fixedpricecarservice.com.au/ but it was slow / somehat broken when I looked at it
We use this site a fair bit now.

Helps to narrow down the estimates a great deal, because there are so many cars and the services vary quite a lot in cost - makes it almost impossible to give folks an idea without it.

Interestingly, when I punch in the specs, almost every time the dealerships in our area on the site come in as the most expensive.
 
The local garage does the falcon utes. And they are always under $200
I think this is very cheap for a service, but if they are "always" under this figure; it makes me wonder what is not getting done...

Eventually, an air filter/spark plugs/fuel filter/brake fluid/wiper blades etc need to be changed. Brakes need to be adjusted, tyres rotated etc.

The perception from the customers seems to be that everything takes 5 mins to do. If only.

Some of the modern cars - to change a headlight globe involves removing the battery and/or the washer wiper bottle or air filter box, or even a panel inside the mudguard.

~$80 - $90/hr labour is probably around what I'd think is reasonable, plus retail prices for parts/consumables. If I was paying for a minor service (oil + filter + cursory check of stuff) I'd hope for it to be sub-$200

Interesting reading these two posts.

For our workshop, it is pretty much impossible to conduct a proper "service" for under 1.25 hours.

We can do a quick lube - oil and filter change and check tyre pressures, push it out the door, but that's about it.

That is not a service though.

To do a proper service where everything is checked, it is no less than 1.25 hours. By the time you do a test drive, get it up on the hoist, get it off again at the end and do another drive to double check; easily that long.

Our hourly rate is $95 + GST per hour = $104.5 per hour.

So, basic timeframe starts at $130 for labour, plus parts and "consumables". This makes our very basic "service" ~$200 for most cars - only the smallest of cars with say; 3 litres of oil would come in under $200.

When you have staff to pay - circa $25 per hour - rent etc; you cannot charge much less than this and make enough profit to stay profitable.

Dealerships are $140 per hour and upwards mostly. But they have more staff between the customer and the actual mechanic (reception, supervisor, parts dept etc) than yer average workshop.

One lady I know recently was charged $308 by the Ford Dealership for her 30,000km service - $160 for labour, plus oil and filter and two wiper blades.

A "backyard" enterprise with only the proprietor can charge less, and an industrial estate type place with only the proprietor to run it can do so as well and still make money.

We often get folks coming in asking; "How much for a service?". There is not set answer, but my normal response is that a basic service will be between $200 and $250; depending on how much oil and cost of filter, etc.

This often invokes a raising of the eyebrows response. So; the perception is that it is too expensive...but I wonder what they expect a service to encompass?

Most folks - from my experience and therefore my perception - want their car to be "guaranteed" safe after a service, but want it to cost almost nothing.

A visit to the doctor for a consultation is ~$70 and it might last 10 mins of you are lucky.

But, thankyou for the feedback, folks.
 
Hi BV,

<<We often get folks coming in asking; "How much for a service?". There is not set answer, but my normal response is that a basic service will be between $200 and $250; depending on how much oil and cost of filter, etc.>>

<We can do a quick lube - oil and filter change and check tyre pressures, push it out the door, but that's about it. >>

Perhaps others just quote for a "quick lube, oil and filter change" $ 120 ? and then add "if we find any problems it will be more"

In the mind of mug punters an oil change is a service, also perhaps check the coolant levels and paint the sides of the tyres with that shiny stuff and away you go :)
 
If your services are perceived as costing more - because you actually do more - then you need to make this your unique selling point.

Have on prominent display a large sign with two headings:

Our services include .... Their services include (without naming who they are)

.. and then list what yours includes as apposed to the cheaper places. A comparison list. Something you can refer potential clients to. A value for money checklist type thing.

Gotta play your strong points.
 
I think the problem is lack of trust. It's the same with lawyers, real estate agents etc. People expect you to take the p*ss, so even if you are delivering good value they are not likely to believe it.

Some lawyers do grossly overcharge, many real estate agents lie through their teeth to get the best deal, and lots of mechanics are equally dishonest (over charging, charging for something that they didn't do, pretending work is necessary when it wasn't) etc.

Unfortunately the good guys get tarred with the same brush ..
 
I service my car with a Dealer (and knowingly get ripped off at the exorbitant price they charge), but thats only while the car is under warranty.

Once the warranty period is gone, I take it to another mechanic who does the regular services for $90.

I weighed up the cost over the 3 year period. It was $1,200-$1,500 saving if it went to my regular mechanic. But the reason why i pay it is because it takes away the ability for the dealer to argue something isn't their fault.
 
I think shopper dockets are a good way to go

Recently used a carpet and pest guy that was really good and also well cheap...and am now about to try a $99 mobile car service, though I'm not fussy on that

Would it be worth sending the apprentice out and around the burbs doing mobile services? We dealt with a restaurant that advertised with shopper dockets and the people just poured through the door :eek:

I apologise if I have offended you by suggesting shopper dockets by the way lol;)
 
I think the problem is lack of trust.

Thats a big one.
When a mechanic advertises a 3000 point 'safety' check I just roll my eyes. If you look at what is included - most of it I can do myself (and do) for nothing.
I even like to test them out on their so called checks and have known faults. Often they don't pick them up, or if they do they tick a box on a form saying its faulty (then do nothing about it), or fix it and attempt to charge you 3,000 times the price for it.

However, Im reasonably mechanical, so will usually do my own oil, filter and fluid changes every 5,000-10,000kms (light duty diesel) and then take the car in every 12-18months for a proper service. I would think it costs about $500 if there is nothing majorly wrong with it.

Note though I haven't owned my own car for about 7years - so can't remember for sure.

Blacky
 
part of the challenge is, if your pool of potential clients dont have the funds or the sense to have car serviced to a minimum safety level you have other issues.


If you cant sell basic safety over cost in that community........ its a hard ask

ta
rolf
 
We get new cars (salary packaged), and it usually costs between $200-250 for each service. No idea if that is good or bad, but it's all pre tax $$$ and we do it through a dealer who we know does a decent job {had issues with the last mob}.

ETA - we don't have a choice about getting it serviced regularly, it is a requirement of the salary packaging company that it gets done.
If extra work is ever needed they ring to let us know and ask if we want it done, or if we've noticed something amiss then we point it out - in which case it can sometimes cost a bit more.
 
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When I find a mechanic I trust, I just ask him how much and he tells me. Usually between $250-$500 per service, but if they're doing a good job I don't care. My favourite way to check if I can trust them is to have the wife call, and if they try up-sell her stuff I know isn't required (injector cleans on new cars) I go elsewhere.
 
Hi BV,

<<We often get folks coming in asking; "How much for a service?". There is not set answer, but my normal response is that a basic service will be between $200 and $250; depending on how much oil and cost of filter, etc.>>

<We can do a quick lube - oil and filter change and check tyre pressures, push it out the door, but that's about it. >>

Perhaps others just quote for a "quick lube, oil and filter change" $ 120 ? and then add "if we find any problems it will be more"

In the mind of mug punters an oil change is a service, also perhaps check the coolant levels and paint the sides of the tyres with that shiny stuff and away you go :)
I understand what you are saying, and we do the tyre painting and coolant checks etc - just not for "a regular service for $90" as someone else said in another post :rolleyes:.

We used to advertise services for $150.

The boil-down was that some folks were getting miffed when they found they were not getting the Book stamped, or the things that needed doing, done...they were all noted to be done of course.

It was becoming more of a hassle and bad PR than it was worth, so we canned it.

The perception I've found is that folks expect to come in with a jalopy and leave with a Ferrari, be guaranteed a life of safety and trouble-free driving until they retire, and pay zippo for the experience. :rolleyes:
 
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Have you considered two service levels, print each out on form listing what is done in each instance.

Perhaps "basic service" and "full service" get the punter to select from the clearly displayed signs at the counter and sign on the correct form after you have written in their name and car rego.

Maybe a space down the bottom for notes for the mechanic of things to check for an extra fee if work needed.

You could then advertise or quote a basic service from $xxx

By getting them to pick you have covered your butt, they will still complain but that is part of dealing with the public I am afraid.
 
Have you considered two service levels, print each out on form listing what is done in each instance.

Perhaps "basic service" and "full service" get the punter to select from the clearly displayed signs at the counter and sign on the correct form after you have written in their name and car rego.

Maybe a space down the bottom for notes for the mechanic of things to check for an extra fee if work needed.

You could then advertise or quote a basic service from $xxx

By getting them to pick you have covered your butt, they will still complain but that is part of dealing with the public I am afraid.
It is an idea I have thought of and have done (the $150 service was one of three price-points we had to cover yer little Mazda 2, Getz, etc - right up to 5lt V8 Conformadores, etc)

Where it tends to fall down is in the pricing - it has to be such to cover all the variations (so you have to quote a bit higher to cover things such as weirdo air filters and cartridge oil filters and so on); so the end result is the price has to be higher...defeats the purpose for the price conscious punter

see here - http://www.fixedpricecarservice.com.au/

We use this site as a reference quite a lot, and I can tell you that the prices are nicely loaded.

I guess the counter-argument to the low-cost fixed price service strategy is; you wear the services that you make no money on, and enjoy the ones where you make money - but in fixed price servicing you don't make money unless the price is loaded (as above). Catch 22.

The long term view might be that you will generate so much business from low-priced services that the increased turnover will generate a higher level of total profit dollars.

I'm OK with that, but the transition period of getting to that level would be hard to carry financially for most places, and I think you would also need to have a staff of lots of apprentices to increase the margins....

"The "ever since" and warranty return factor would increase, thus a drop in profit. Catch 22 again.
 
hey BV what is your take on these 5 years free servicing included in some of the new car deals? Seems like it eliminates the needs for servicing with other providers and also some pickup and deliver your car to your home.
 
hey BV what is your take on these 5 years free servicing included in some of the new car deals? Seems like it eliminates the needs for servicing with other providers and also some pickup and deliver your car to your home.
It sounds fabulous.

Sorta like the "No Stamp Duty" on an OTP apartment. :rolleyes: It is built into the price.

The reality is the costs are funded in the cost of the car.

We pick up and drop off both cars and/or customers, by the way.
 
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