Auto repair shops that compete primarily on price are undermining their own profitability and long‑term viability, according to a shop coach.
At the Midwest Auto Care Alliance Hi‑Tech Training and Vision Expo in Kansas City, Bill Haas of Auto Ignite Management, told attendees that shops positioning themselves as the least expensive option in their market are sacrificing far more than margins.
“If price is your competitive advantage, I’m telling you you’re losing,” Haas said. “Don’t be the least expensive shop in your market.”
Competing on price limits a shop’s ability to reinvest in its business, Haas said, including paying competitive wages and attracting skilled technicians.
“You’re losing the ability to be profitable,” he noted. “You’re losing the ability to attract the right type of people to work in your store.”
Furthermore, would top technicians even choose to work in an environment built around low prices, he wondered.
“Do you think the best technicians in the industry want to go work at the shop that doesn’t have the ability to pay them what they deserve to be paid?” Haas asked the audience.
Instead, he argued that time has replaced price as the most valuable currency for today’s consumers. He said customers are increasingly unwilling to wait for service, regardless of cost.
“Today, time is currency,” Haas said. “Time is more valuable to people than what they’re going to spend to have something.”
He pointed to broader consumer expectations shaped by technology and instant access, saying patience has become increasingly rare.
“We live in a society where people expect everything now,” he said, adding that people have the attitude of “I don’t want to wait.”
Focusing on price forces shops into a race they cannot win, particularly against large chains and dealers with different cost structures, Haas warned. Price‑driven conversations also attract customers who are unlikely to value the shop’s expertise or service model.
“If you’re going to lose a sale, lose it because you failed to ask powerful questions,” he said, “not because you weren’t the lowest price.”
Instead of price, Haas urged shops to compete on service, speed and reliability. He said businesses that deliver faster response times and clear communication give customers a reason to choose them over competitors, even at higher prices.
“What are customers willing to wait for?” he asked. “Not much.”
Shops that stop chasing price shoppers and focus on delivering value are better positioned to improve profits, retain staff and build long‑term customer relationships, Haas said.
Image credit: Depositphotos.com
Leave a Reply