Up Your Game And Charge More For Your PDR Service.
It’s no secret that most of us in the PDR industry think we don’t get compensated enough for the skilled work we do, but how many of us have actually done anything about it?
You can read any amount of forums on social media platforms and the like and you’ll find technicians complaining about price, or how they can only charge so much in their area.
Here we will look at raising or changing your pricing structure so both you, and more importantly your customers benefit.
If you decide it’s time to raise prices there is a chance you may lose some customers, but the likelihood is, the customers you do lose will be the ones you hate servicing. The last thing on a Friday customer, the, “ I’ve got a small one for you, it’ll just pop out “ customer. The ones only interested in price. These are the customers that are only want to see how cheap you can fix a panel or car for, or who only want you a couple of times a month to pull them out of the proverbial. Wouldn’t it be better to get rid of this type of customer to concentrate on your valuable customers? The ones who feed you regular work, understand the complexities of what we do and who see the benefits of Paintless Dent Removal. These value customers are the ones who, when you do introduce a re pricing with the correct explanation, will understand why and will probably be expecting one anyway. Especially if it’s been a while since the last one, if there has been one at all.
Signs It May Be Time To Re – Structure Or Raise Your Pricing
You’re fully booked all the time. –
You couldn’t fit another panel in if you tried. Spending your time chasing around and constantly fighting fires a sign that you’re in high demand, so it may be time for a pricing re – think.
You’re charging the same as the competition –
If you’re charging the same as the competition but you know you’re busier than them or you’re repairing damage they’re leaving behind or customers are telling you you’re better and they only want to use you, then it looks like you’re the premium service, and premium services should come with a premium price. You need to differentiate yourself from the competition if you are offering a better service, and a sure way to do that is with price. Having said that, you must have the skills to back it up.
Customers tell you you’re cheap –
If when you introduce a price to a customer and you hear “ Oh really, I thought it’d be more “ then it’s time to have a re think. This shows you are currently pricing your service on your own perception of what you’re worth, not your customers. Customers perception of you and your position in the market place is key.Your price has to reflect the service you’re providing. Don’t forget, there is a reason the customer contacted you, there was something they liked the look of, and, as previously mentioned, a premium service should demand a premium price.
You win all your estimates –
This is especially counts if you your PDR service to the retail market. You need to have a natural fall off from your estimates to know you’re charging the right money for your service. If you win all your quotes or estimates then it’s highly likely that your under pricing, and, under valuing yourself. You don’t need to win every job to operate profitably. Example. ( Prices for ease of explanation )You quote 10 jobs at £50 and win them all, you earn £500. You quote 10 jobs at £100 and only win 5 of them, you still earn £500, the same money with a 50% closing rate. The other 50% just weren’t your customer, thats all.
You feel like it’s time –
If you’re starting to feel like you’re due a raise then it’s time. If you don’t address that feeling of being under compensated for what you do then you will start to resent what you do and the customers you work for. Your passion will start to dwindle and ultimately the quality of your repairs will suffer and you’ll get known for the wrong reasons
Seriously. If you want to dominate your area of operation and set the benchmark and be the go to Dent Guy, you have to stop trying to compete with other PDR companies. Too much time is spent with technicians charging ‘ the going rate ‘. What is that anyway? Think about it. You hear things like, “ It’s all the dealerships will pay “ or “ Thats all you’ll get in my area“ Most of the time it’s as low as any one is willing to go, and that is helping no one, not your customer and certainly not you. The only reason you’re currently charging the same as the other Techs is because you’re too busy competing. YOU need to set the standards and along with it the pricing. YOU be the company that sets the benchmarks, YOU have to offer something different to make your customer take notice, but there are responsibilities and extra effort that go along with that. For example, starting earlier than anyone one else, working weekends, pitch walking dealers after work, taking on bigger damage. etc etc. Stop advertising as cheaper than the bodyshop, or less than the insurance excess, instead advertise as better and faster than the bodyshop, and advertise the ability to work with the insurance. Give more.
Give To Receive
To be able to command the highest prices and the right type of clientele in your market place you have to be prepared to give. Ultimately your whole service should be built around, “ what else could I do for my customer, what else can I give them “? You have to constantly thinking of ways to add value to your service. Once you establish a giving culture within your company then the money will flow to you and you naturally attract the right kind of appreciative and valuable client. If you operate at the low end and cheap end of the market. you automatically attract the cheaper, problem kind of customer.
How Do I Make The Changes?
Once you’ve decided to change your pricing structure then you need to go about it in a professional manner. The first thing you need to do is give your customers notice of what you’re about to do, and when you intend to implicate it, preferably in writing. Itemise how you’re going to structure your new pricing, whether you decide that your initial pricing will stay the same and you enhance or add to your service with larger repairs or advanced type dent removal or increase your advanced and large damage repair prices that you already do, or whether you’re going to start to charge for strip and fit, or polishing,or whatever, make sure you list it. Set out a clear criteria of what your future dent removal service will entail.
If you want to charge more for retail, break your estimates down into components of the repair. Strip and fit, body lines, glue, aluminium, travel time, polishing, People will make sense of smaller figures that add up to a larger total easier than if you just give them a larger figure with no explanation.
Don’t apologise for a price increase or any changes, but explain why you’re doing it without blaming outside factors like the economy or your costs going up, your customers don’t want to hear that, it’s of no concern to them, don’t forget, they’re in the same economy as you, and their costs increase just like yours. Explain how long you’ve been charging your current prices, and if they want you to continue to receive the same service with some added benefits then it needs to happen. ( Always give something back with your price increase ).
Then just do it. Put up your prices like you told your customers you would whilst factoring in the extra value you promised them. You will lose some customers as stated earlier but your new price structure will take that into consideration. So whilst losing customers, you should still see a healthy rise in your turnover and income. If you do end up with gaps in your diary, fill them with more high value customers and enjoy the growth!