Do you over price? Or do you underprice? Both are common! How do we define overpricing or underpricing though? To a customer it relates directly to the number on the invoice – the total amount. I would suggest however that the definition should really include value. If a customer feels like something is overpriced they either looked it up on the internet, obtained another estimate, or just plain didn’t feel like they got their money’s worth. In all cases there was no context for what value was being obtained for the money. A large part of the service advisor’s job when selling is to create value. A customer that understands you only use quality parts, employ expert technicians, and that the job is backed by a nationwide warranty for 2 years will feel more value for the money than someone only looking at prices. Value needs to be created though. Many people don’t realize what they get, or don’t get, for the lesser price. Many shops “hate” price shoppers because they feel that they waste their time. Think about it though – one really good thing about price shoppers is that they are in the buying process at a point of need with something. Often times the only thing customers know to ask however is “what is the price”. The average automotive consumer may not think to ask about warranty, quality, diagnosis, complete repair, etc. This is where they need to be educated about value! Overpricing and underpricing only exist because too often we do a poor job explaining value in a way the customer understands. Be sure to explain the value your next customer will receive in terms of warranty, diagnosis, and quality. You’ll be glad you did!

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