Scanner Fee

[artadot]

We charge a fee for a hook up to a scanner/computer, currently we have it as a canned job, but that includes it with our labour numbers, we don't want to put it to parts as that would affect the parts margins, it isn't a sublet. Does any one have any suggestions as to how to charge this?

[ricmorin]

We don't charge this separately. If we were to, we would do as you and use a canned job.

I guess the bigger question is why do you charge this? Do you charge a fee when you use a balancer? How about when you mount a tire? Maybe when you put a vehicle on a lift? How about when you use that special 800 dollar tool? Are there separate fees or is there just labor?

My suggestion is cover your equipment needs within your labor. We have a higher rate for testing/diagnosis. That covers the equipment end of things. Plus I think customers react negatively to a bunch of line item fees.

Everyone runs their business a little differently.

[Sauvageaus]

What do most people usually charge for Diagnostics (hooking the scan tool up)? Also, if you do a standard check up putting on a lift?

Also, if you do a full check through on brakes, leaks, check engine light?

We have a lot of returning customers that come back and have developed a relationship with them. We have a Genisys Evo Scanner but also just have a small one and for me to walk outside and get a code or to clear the light doesn't take long at all, hate to charge them really anything If there is something wrong we know they'll get the work done and then I'll usually add half hour diagnostics.

We pay our mechanics on commission and so if a customer comes in says they have squeaky brakes, but we bring it in and take a look and notice they're fine for now. Most those customers don't like paying for that kind of stuff, because we didn't do any work which I can understand. If they did need brakes or we discover something else wrong (tie rod ends, sway bar link etc.) they would have whatever needed to be done, so is it worth charging them anything when nothing is wrong, but if there was anything wrong they'd have it worked on?

hope most of this makes sense.

[brianp87]

If someone came in with a brake noise or a cel. I would absolutely charge them. You did do work by removing the wheels and checking the brakes, you also took time to check and diag the cel. They should be expecting to pay if you went to the doctor with a cough wouldn't you expect to be charged? Why work for free? To me this could make thos guys on commission try to sell uneeded services also since they do not get paid for work they are doing. Just my .02

[ricmorin]

I'll give you my 2 cents....

What do most people usually charge for Diagnostics (hooking the scan tool up)?

We don't have a separate fee for the scanner. It is rolled into the tests needed for a CEL diagnosis. We approve 2 hours of time at the diagnostic rate and tell the customer that this the maximum it could cost and that most problems are found in around an hour. We bill what we work up to the 2 hour limit. If I can't find the problem in 2 hours, I need some training.

I want to stress that we DO NOT credit this if they approve the repairs. Tests are tests and they take time, training and equipment. Even if we find nothing wrong at the time, the charge remains.

Also, if you do a standard check up putting on a lift?

If you are referring to while it is in for a CEL, then no. I might get flamed for this, but I'm not a believer in free inspections designed to help my bottom line. Most of my customers are wise to this. Now that's not to say we have blinders on, either. We keep an eye out for the customer. I actually CHARGE for a thorough inspection that will find most maintenance and repair items. Any regular customers are already up to date or have recommendations posted.

hate to charge them really anything If there is something wrong we know they'll get the work done and then I'll usually add half hour diagnostics.

Agreed. We don't charge for a simple plug-in.

Most those customers don't like paying for that kind of stuff, because we didn't do any work which I can understand.

You DID do some work. You have a facility, lifts, insurance, your salary, utilities, and an expected profit. And you spent time. When you give that away you demonstrate to the customer that it has no value.

If they did need brakes or we discover something else wrong (tie rod ends, sway bar link etc.) they would have whatever needed to be done, so is it worth charging them anything when nothing is wrong, but if there was anything wrong they'd have it worked on?

Most of the time we still show a separate fee, unless the needed teardown is a normal course of the repair. If we check a brake problem and pull things apart, then the customer has the repairs done, then no fee. But if they were to leave without repairs, fee.

Bottom line is if I am doing something for you I expect to get paid for it. My customers don't expect me to work for free. They also expect me not to double dip. There's been a long standing conception that CEL's and inspections should be free, mostly perpetuated by ourselves. It going to take the same group to undo it.

Think about it this way: If you go to a doctor with a cough and he doesn't find much, is the visit free? If you have the surgery, is the visit discounted? You'd think that was absurd. So why does it happen with our industry? Because we let it happen.

[mastertechauto]

We do it the same way, Ric.

[ricmorin]

Way to go, Mark. When this becomes commonplace, there will be no resistance. Then we can start making the money we deserve.

[brianp87]

Im almost exactly as ric but not as articulate

[ricmorin]

Im almost exactly as ric but not as articulate

We were typing at the same time. We must be connected at some higher level. Too funny.

[brianp87]

That's funny. Im glad there are the places that do not charge I know they cannot afford to stay in business long or if so not and afford to stay up to date. It helps separate the best from the wannabes.

[Sauvageaus]

Thanks guys, My dad has had the business for 30+ years and his problem is he gets close with many people and he's to nice of a guy to either say no and in my opinion gives to much to customers. I'm trying to get it to where if we bring it in and do some looking into and don't fix now that they owe something.

I'm fine by not charging if I just put the computer on to get a code or clear the code, but if we do more than that I think we need to bill something out and sometimes we do, its just some customers that are loyal he doesn't always charge.

I'm thinking of getting a board in the office with prices like that.

Full Check through (brakes, light, fluids, etc)

Brake Check

not sure what others to have on there.

[Sauvageaus]

That's funny. Im glad there are the places that do not charge I know they cannot afford to stay in business long or if so not and afford to stay up to date. It helps separate the best from the wannabes.

haha ok, there's a reason he's been here for over 30 years, so guess we're a wanna be.

[brianp87]

If I were a flat rate tech and I did not get paid for work I did Id be pretty and and it also may be illegal to not pay a person for work they do in that case? If you spend an hour looking over a vehicle as they requested and do not charge that's lost $ plain and simple. Things were different in past times I am aware of that. In current times even scanning cost money. Updating all the scanners you use and replacing them when needed. And as Ric said that does not include the other day to day expenses.

[brianp87]

That's funny. Im glad there are the places that do not charge I know they cannot afford to stay in business long or if so not and afford to stay up to date. It helps separate the best from the wannabes.

haha ok, there's a reason he's been here for over 30 years, so guess we're a wanna be.

Im sorry if it came off as a slight it was not intended that way.

[ricmorin]

That's funny. Im glad there are the places that do not charge I know they cannot afford to stay in business long or if so not and afford to stay up to date. It helps separate the best from the wannabes.

haha ok, there's a reason he's been here for over 30 years, so guess we're a wanna be.

Yes there is. It's because you know how to treat your customers. Now it's time to learn how to treat yourself.

I purchased this place from a guy much like your dad as it sounds. Make the changes slowly and all should be well.

[liljoe]

We were discussing some changes here and the way I put it to my boss is that I don't want to flip a switch but rather turn a knob to make the changes we are wanting to implement here. He said that was a good way to look at things when a change is needed...

[Sauvageaus]

If I were a flat rate tech and I did not get paid for work I did Id be pretty and and it also may be illegal to not pay a person for work they do in that case? If you spend an hour looking over a vehicle as they requested and do not charge that's lost $ plain and simple. Things were different in past times I am aware of that. In current times even scanning cost money. Updating all the scanners you use and replacing them when needed. And as Ric said that does not include the other day to day expenses.

Well if we put an hour into something we pay, I was more or less if its like 5 mins or briefly looking at something its really hard to charge someone an hour or so for that.

[Sauvageaus]

That's funny. Im glad there are the places that do not charge I know they cannot afford to stay in business long or if so not and afford to stay up to date. It helps separate the best from the wannabes.

haha ok, there's a reason he's been here for over 30 years, so guess we're a wanna be.

Yes there is. It's because you know how to treat your customers. Now it's time to learn how to treat yourself.

I purchased this place from a guy much like your dad as it sounds. Make the changes slowly and all should be well.

I didn't purchase haha, Just been here the last 2 years working the front office/books as he's not very good when it comes to computers. When I first started in the office we wrote up estimates with Quickbooks/ and the Disc Pro Demand a year later I finally got him to get the new updated Mitchell1 Prodemand and SE which has been great to use. I'm learning more and more daily with it. The next step is I want to get CRM going, but we also would like to get more workers before we do that next step, but the problem is there isn't much help around here.

[Sauvageaus]

If I were a flat rate tech and I did not get paid for work I did Id be pretty and and it also may be illegal to not pay a person for work they do in that case? If you spend an hour looking over a vehicle as they requested and do not charge that's lost $ plain and simple. Things were different in past times I am aware of that. In current times even scanning cost money. Updating all the scanners you use and replacing them when needed. And as Ric said that does not include the other day to day expenses.

That's the big thing I'm trying to get into his head and that's why I want to get a Board in the office when customers walk in they see the flat rate prices on certain jobs.

[steven kiser]

I was just flipping through the posts and landed on this one. A point that nagged at me for a long time. I'm not a dealer so we'll forget their policy and how they do things. Along time ago I stopped competing with all the area shops and decided to look at it a bit differently so what they charge and policies they have are irrelevant.
My rules are simple and easy to follow. If a vehicle comes into the shop for service work and asks to have the brakes inspected thee is no charge. We do it automatically so it's a non issue. However if it comes into the shop for a brake inspection looking for something that is causing an issue we'll tear into it and do a detailed diagnosis and report. The charge policy is like Ric's. Since we road test most of the brake inspections the charge is a minimum hour unless it's metal to metal, broken line etc. Basically all diagnostic services are a minimum hour and my policy of absorbing the fee varies a bit. Scanning for issues and a bit of investigation usually remains an hour and on occasion I'll drop the charge to an hour if it's two. Knowing my customers may have an impact on fees. Another fee that I always wrestle with is the "used car inspection" I have a minimum charge of 1 hour. The only thing that can effect this is if we see a major fail point right away. Then depending on the customer the diagnostic fee may be adjusted. On rare occasions I will do a comp for a good customer. Again I will discount the inspection fee if the customer purchases vehicle and I do the repairs on what we found. Obviously I can't say I strictly adhere to my policy but I certainly do compared to 8 or 9 years ago. Then I was a "Good Time Charlie" and this changes when I started seeing repairs made to vehicles I inspected and comp'd being done at other places that were having specials, I learned a long long time ago that if I'm consistent it works out. Some customers may opt out of bringing their cars to me but I've found that eventually others fill their spaces.