11/18/2020
A customer asked me how much it could cost to do the transmission in his vehicle....
I answered him: I could be around $3000
He said: So expensive for this job?
I asked: How much do you think it should cost you?
He answers me: $1500 maximum... That's a pretty simple job right? !"
- For $1500 I invite you to do it yourself.
- But.... I don't know how to.
- For $1500 plus parts I'll teach you. So besides saving you $1500 you'll get the knowledge for the next time you want to do a transmission overhaul.
- How much are the parts going to cost?
- It depends on what failed in the unit but average $1000.
- It seemed reasonable to him and he agreed.
- I told him - But to get started: you need tools: A lift, all the necessary tools including specialty tools to properly align the pump and other parts. A parts washing machine unless you want scrub the parts by hand. And the necessary diagnostic and programing equipment to program it to the car.
- But I don't have all that equipment and I can't buy all of that for one job.
- Well then for another $500 I'll rent my stuff to you so you can do it.
- Okay, he says.
- Okay I said. Saturday I'll be ready to do the job.
- He said, But I can't on Saturday. I only have time today.
- I'm sorry, but I'm only available Saturday to teach you and lend you my stuff. Other days are busy with our regular paying customers.
- Okay! That means I'm going to have to sacrifice my Saturday
- I forgot to tell you about some of the non-productive factors to do the job yourself.
- What cost?
- Sales tax, insurance, electricity and product warranty. If you do it yourself and it fails who is responsible. If you get hurt doing the job who is responsible? The electricity has to be on to power the air and light.
- Oh no!... I'm going to spend more money and waste a lot of time with no guarantee.
- But Iām willing to help you out on Saturday. I'll make sure you have all the parts you need so we can get started at 7:00 AM.
- He was shocked. 7:00 AM! Nope! Too early for me! Iām used to getting up later...
- You know, I've been thinking. Maybe you should do the job. I'd rather pay you the $3000. If I had to do it, it wouldn't be perfect and it would cost me a lot more.
When you pay for a job, especially automotive you pay not only for the parts used, but also:
- Knowledge
- Experience
- Education
- Tools
- Time
- Accountability
- Professionalism
- Accuracy
- Warranty
- Licenses
- Safety, insurance and security
- Payment of tax obligations
No one can denigrate other people's work by judging prices.
Only by knowing all the elements necessary for the production of a certain job can you estimate the actual cost.
I did not write this dialogue, but I plagiarized it to fit my business.