Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Thu Mar 13, 2008 4:43 pm Post subject: Charging For 'Shop Supplies'
A new client came in today to have some maintenance. While his vehicle was being serviced we were talking. He told me he had always used the dealership for service in the past. On his last visit there, he had the serpentine belt replaced. On his invoice was the charge for installing the belt, the charge for the belt and a charge for “shop supplies.”
He asked the cashier about the charge and was told it was for supplies used on the job. A little perturbed, he asked the service writer what supplies were used to change the serpentine belt? The SA replied, none, but we now charge this to everyone. At this he paid the bill and decided to find another source for auto repairs.
I have always felt people don’t mind paying for what they get, but fiercely resist paying what they see as unwarranted. Itemizing shop supplies, in the quantity actually used is not very difficult. Billing when and if they are used is childsplay with a proper invoicing system.
Tacking a percentage of the total on every ticket, might be great for business, but perhaps not the business that is charging in that manner?
Joined: 15 May 2007 Posts: 146 Location: Garden City, KS
Posted: Thu Mar 13, 2008 8:37 pm Post subject:
I've seen where management seminars suggest that you develope "kits" that can be charged out to the client. Such as a "Brake Kit". This would include grease, cotter pins, brake fluid, rags, brake-clean, etc. The list of kits could go on and on. I, personally, see little difference between this or Shop Supplies. Later, Matt.
_________________ Matt Fanslow
ASE CMAT/L1
Crag-Technologies, Inc
www.wavehook.com
Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Sat Mar 15, 2008 8:58 am Post subject:
Bud wrote:
It is also illegal in some States to charge for supplies unless they are itemized and reasonably tied to that specific invoice.
Hi Bud,
Apparently some management guru is making the rounds locally. This quick-fix method seems to suggest people are not smart enough to spot an extra charge on their bill. I have been told the charge is a percentage of the total service charge and billed on EVERY job.
If I weren't already a week backlogged, I would hire this guy to teach all of my competitors.
Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Sat Mar 15, 2008 9:06 am Post subject:
MattFMN wrote:
I've seen where management seminars suggest that you develope "kits" that can be charged out to the client. Such as a "Brake Kit". This would include grease, cotter pins, brake fluid, rags, brake-clean, etc. The list of kits could go on and on. I, personally, see little difference between this or Shop Supplies. Later, Matt.
Hi Matt,
I can't condone a blanket charge either, no matter what it is called. To me it seems either lazy or dis-honest.
My opinion is if it leaves with the vehicle, it's a supply. If not, it's cost of sales and covered under my service rate. For instance, brake fluid, refrigerant or coolant leaves with the vehicle. I bill for the amount used on each vehicle. Shop towels, hand cleaner, hacksaw blades, etc. do not leave with the vehicle. My service rate covers their cost as a part of the cost of doing business.
Im not sure if I have posted this before but in ontario we have a law called bill 22 which is suppose to protect consumers of the auto repair industry.It includes written estimates must be provided and invoices have to stay with 10% of the estimate unless you obtain approval from the customer.Everything must be listed on the invoice and no bulk shop supplies.Like Matt said we can charge for brake kits or electrical kits but the contents of the kit must be posted for customers to see.I dont really know who enforces this law or if its been put to the test. I agree with Louis, some tems are just part of doing business.It just looks tacky charging for rags and uniforms.
_________________ Jason Clark owner/tech
Clarks Automotive
Wellington Ontario
Canada
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