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Dilemma-of-Honest

Honest shops often struggle. Collectively they get a very small share of the market and their profit margins are relatively small. This will continue until consumers select more carefully.

Small Market Share, Low Volume

The good guys don’t use come-on’s, bait and switch tactics, etc., so their ads don’t have the same value pull as misleading advertisers.

They also don’t sell as many parts and services on each car because they only sell want you actually need.

Lower Profit Margins

The good guys operate on lower profit margins because they use quality parts that cost more, they maintain their information and equipment so they can to service your vehicle properly and they hire and train skilled personnel.

Consumers Beware

The following table summarizes. While a substandard shop will prosper more easily, consumers will more often find cheap parts and misdiagnosed problems that result in unnecessary work sold to them.

 

 
Substandard Shops
Quality Shops
Parts
Cheap
Quality/Expensive
Training
None taken
Regularly sends personnel
Equipment
Old/No reinvestment
Maintains/upgrades as needed
Personnel
Low paid, unskilled
Well paid, highly skilled
Garageman’s Insurance
No
Yes
Unnecessary work sold
Very high occurrence
Rare
Relative profit margin
High
Low

 

Honest shops deserve ALL the business. If you work at an honest, quality orientated shop, please do the following:
bullet Ask your customers to refer their friends. Shops such as yours depend on referrals to survive.
bullet Particpate in industry efforts to recognize quality shops.
bullet Participate in industry efforts to establish standards that define quality work and quality shops.


 


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