
Focusing on price isn’t a viable strategy. So how do you add value to your automotive service shop without sacrificing the customer experience?
In today’s economy, affordability and retaining customers is a top priority for many shop owners and managers.
However, focusing solely on price as a strategy for retention is a short-sighted approach for automotive service shops. While low prices on an estimate versus another shop may retain customers initially, they often lead to compressed margins, the wrong clientele and a diminished ability to reinvest in the business.
Instead, shops should prioritize delivering value through transparent communication, refined inspections and a superior customer experience.
Value is about more than cost — it’s about quality, expertise and trust. A professional inspection process is critical to identifying and communicating which repairs are urgent and which can be deferred. This not only ensures safety but also helps customers understand the reasoning behind every recommendation.
During the estimate process, clear communication is key. Customers need to feel involved and confident that their money is being spent wisely, fostering trust and satisfaction.
Understanding a customer’s financial comfort zone is also crucial. Every customer has a threshold for what they’re willing to spend on repairs. Shops must balance this with the need to prioritize safety and quality.
Honest, jargon-free communication about repair priorities and their value helps customers make informed decisions. This personalized approach builds trust and encourages repeat business without overwhelming clients.
“Shops that rely on low prices to retain customers risk attracting clientele who prioritize cost over quality. These customers often lack loyalty and are less likely to support long-term profitability.”
Deferred work is an essential tool for managing customer relationships. By identifying non-critical repairs and staying in touch about them, shops can ease the financial burden on customers while ensuring a steady pipeline of future work. This strategy benefits both parties: Customers feel less pressured to make immediate decisions, and shops maintain consistent engagement, positioning themselves as trusted advisors rather than pushy service providers.
Shops that build trust with their customers and understand their customers’ motivations to prioritize the lifelong value of the customer.
While it’s important for shops to generate an average repair order that supports the financial viability of the business, transparency and communication with clients are the key. It is the shop’s responsibility to ensure the vehicle is safe upon return to the client. Thus, there is a fine balance and an art for the owner or service advisor to navigate these interconnected dynamics within the estimation, and checkout process.
Shops that rely on low prices to retain customers risk attracting clientele who prioritize cost over quality. These customers often lack loyalty and are less likely to support long-term profitability. Additionally, price compression reduces margins, limiting the shop’s ability to invest in training, equipment and facilities — all of which are necessary to stay competitive.
Instead, shops should focus on delivering exceptional customer experiences. Clients are willing to pay a premium for clear communication, professional service and consistent quality. Competing on value rather than price creates a loyal customer base that contributes to sustainable growth.
A great customer experience goes beyond the repair itself. It starts with transparency — being upfront about costs and timelines — and extends to regular communication during the repair process. Shops should also focus on creating a welcoming environment and following up with clients after their visit to reinforce trust and satisfaction.
Focusing on value and customer satisfaction ensures long-term success. Stronger margins allow shops to reinvest in tools, training, and facilities, further enhancing the customer experience. This creates a positive cycle of growth, loyalty, and profitability.
Ultimately, the key is to make every dollar spent by the customer count. By delivering safety, trust and satisfaction, shops can build lasting relationships and secure their place in a competitive industry.
Zakari Krieger is the Fix Network, Canadian vice president of Prime CarCare, responsible for the Canadian retail business, encompassing the Speedy Auto Service and Novus Auto Glass business lines
This article originally appeared in the December 2024 issue of CARS magazine.
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