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Hello Everyone, I have been Doing the shade tree mechanic thing for about 15 years now and recently have decided to give a run at the Mobile Mechanic business as my normal job is not panning out.
My question here is pricing well perhaps proffit is a better term. I work cheep I do not deny it especially since there is a high low income population in my area. Recently as in the last 4-5 jobs I have done I am having issue with runaway customers. I either get the cash for the replacement part or take the customer to the parts store ( if applicable) to pay for the parts required; normally these jobs are 30 miles away and require multiple trips to finish. I try and avoid multiple trips lately there have been part issues or the customer diagnosed the issue them selves and I find it to be something completely different so it require several trips to get new parts or hunting down a junk yard ect.
Suggestions on how to price without being crazily over or under is a problem. I am highly tempted to price higher even though it does not sit right with me because I have had several big jobs a transmission replacement and a head job when the customer has never shown up the second day to pay me. Once again I do not want to sound line a winer however it is not financially possible for me to make three sixty mile round trips for $40. After the first visit it is normally no one answering the phone or promises to meet me at the address at a particular time and never showing up. I am thinking about parts and half of labor upfront before I start work on the vehicle. My business is mobile so I do not have the advantage of having the vehicle on my property and restricting the customers access until I am paid.
I am just starting this out in this state so my number of contacts are low so I am pretty much taking everything I can. I used to work from the driveway or front yard in other states. My customers in previous state however normally where friends, or friends of friends, neighbors or people the local parts stores sent to me so I normally had multiple way to get in contact with the customer. I never had the problem with non payment there either even with people who just saw me working on something or had broken down by the road. With my landlord and location I cant take vehicles to my current yard so any leverage I have is gone in that regard, advice would be appreciated.
Sincerely: Me
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This is a very tricky issue that can lead to a lot of disputes.
You need to make invoices for all the work you plan to do as well as a contract for the customer to sign that they are agreeing to pay for the work, I use auto data to make the invoicing it’s got a basic but functional system with a customers signature is invaluable to have, Also while working kurb side when i arrive I speak to the customer double check everything is ok with the price parts labour etc Ask for the key do my work and the key will be returned when payment is received, There have been one or two bad instances a few suggestions buy a decent wheel clamp and store it in your van if a customer see’s you clamping the vehicle it can be a big motivation to pay up. If you need to work over multiple days and you’re not sure on the client make them aware you will require them to settle there debt at the end of each day or pay up front, and if you’re uneasy turn down the work It’s hard to do but better to not get the job then spend 3 days doing a job to be stiffed, trust your gut if it doesn’t feel right it probably isn’t.
Fmxvxx said it perfectly. Ifs it’s going to be more then a 1 day job cash up front and wheel clamp it.
I agree with Fmxvxx. While I don’t know if it will make you feel any better, most of my life has been spent working for car dealers and running my own shop for a while. In both employment situations we’ve had to put up with the dead beat people who will try every trick in the book to avoid paying for a repair.
In one case, a guy came in Friday afternoon to make sure his cylinder head replacement was done. It was. He also “forgot” his checkbook and said he would be back on Monday; no big deal.
He came down over the weekend and drove the car off with an extra key.
The dealer found the car at his house with no one home and flatbedded the car back to the dealership.
The car was locked in a building with several cars around it.
Not a word was heard all week long.
The next Monday the door was found to have been kicked in, several cars moved out, the guy’s car removed, the other cars put back in the building, and the overheads closed.This time the guy was gone for good. My boss put out word that he was offering a reward for info and a month later got a tip.
The girlfriend of the guy found out that he was having a fling with her sister and ratted him out on the location of the car.
My boss went 125 miles to get the car again and locked it up.
Two months go by with no word and the next thing my boss hears is that he’s being sued by this guy who had been extradited back for fraud on other matters and who was sitting in the county jail.Needless to say, my boss was HOT and even hotter when the law gave the guy his car back even though he was sitting in jail and his father took possession of it while never having to pay the outstanding bill on it for the new cylinder head.
Can’t win for losing…..
This kind of thing is what makes me so hesitant about doing side work. People see others getting paid as them being greedy, as though I’m just trying to make money off them. They seem to think that mechanics just work on cars, like we have nothing better to do with our time. I have to explain that I could be at home walking my dog, spending time with my girlfriend, going hiking, which I’d rather do than bust my knuckles on their car so they can drive around.
I’m even hesitant about helping friends with their cars. More than once I’ve tried to help someone and then their car did something else odd afterwards and they expect me to come make it right. Like recently, friend’s Yukon was having a throttle code turning on his CEL. I came out, found debris and carbon buildup in the throttle, cleaned it and everything was fine. Next day it would hardly accelerate, so I had to get the scanner and drive all the way out there and do a throttle relearn. I did it before the first time but I think the engine wasn’t warm enough. Anyways, he has throttle body issues, honestly probably needs a new TB. BUT I try to make it work for him to save him some money and it cost me time and gasoline.
I understand where you’re coming from when it comes to working on cars belonging to friends or relatives. It seems any problems are always magnified.
Some years ago a brother in law of mine just started a new job and lost the engine in his Chevy pickup. He was stuck and I felt sorry for him so I told him to be patient and I’d come up with something. A guy I knew at a small salvage had just brought in a beat up Chevy car with the same engine. It ran great and the BIL actually drove the car before the engine was pulled and sold to him for 150 bucks with all accessories on it.
I installed the engine for free and the only thing he paid for was oil, filter, and coolant. The truck ran great.
He took it out to test drive it and I never saw him again. A few days later the word got back to me that I “had screwed him over”.
The truck still ran fine with no issues and for the life of me I can’t see how finding him a good cheap engine and swapping it labor free is screwing anyone. I have no idea where his logic, or lack of, came from.The first thing you need to do if you are ever going to make money is get over feeling bad about charging people a decent buck for it.
There is a reason shops cost so much, they want to stay in business. You have specialized knowledge and an investment in tools and you deserve to be compensated for it. Not to mention you have to cover your overhead and still have a bit of profit so you can do things like eat and buy more tools. Don’t feel bad charging a decent price because that is what it takes to stay in business.
As far as the nuts and bolts of doing business the first bit of advice I have is never, and I mean NEVER, accept any kind of customer diagnosis; in the long run it will always cost you time and money.
NEVER leave a job till you have cash in hand.
Thanks for sharing everyone. A few things have changed, I raised my prices a bit still fair but cheeper then the 70$ an hour shops.
I have also changed a few other things I’m doing. Either I keep hold of the vehicle keys or it is half the labor up front. Of course my customers are given a invoice as always. I am working with the program I am using for my book keeping to add a disclaimer/ contract stating I will be in possession of the keys or at least half of the labor plus parts will be paid. Advance.
Now I just need to get a few more customers since the last few weeks have been slow. I have been advertising in the loop cal craigslist and a few other local sites. Business cards are being given to every one I am talking to who has vehicle problems any other suggestions for building my business would be appreciated.
You might consider posting a business card or flyer on public bulletin boards. Laundromats, public libraries, and some supermarkets usually have them.
Good idea not many near by but a good number of them about 15 miles away. I do work at Enterprise and even though it is not perhaps the most appropriate thing to do I often talk to customers about car repair especially when they are complaining about shop prices or uncle so and so never showing up to do the work.
Normally I would not mind the slow period however since I am trying to make this an actually functioning business and not just a little work here and there for extra cash it becomes more important. Thankfully my wife is very supportive even though she is still having to pull crazy hours at her job, it is extra motivation for me to be successful.
[quote=”tryingnot” post=143438]Thanks for sharing everyone. A few things have changed, I raised my prices a bit still fair but cheeper then the 70$ an hour shops.
[/quote]If you are mobile you should be ABOVE shop rate, not below it. It costs more and takes more time to do it work in the field over in the shop. I have been primarily a road tech for years and almost everywhere I worked and when I was doing my own thing road service billed above shop work. Doing the work onsite is a added value to the customer.
How are you charging your travel?
[quote=”notoriousDUG” post=143646]If you are mobile you should be ABOVE shop rate, not below it. It costs more and takes more time to do it work in the field over in the shop. I have been primarily a road tech for years and almost everywhere I worked and when I was doing my own thing road service billed above shop work. Doing the work onsite is a added value to the customer.
How are you charging your travel?[/quote]
I agree. You are entitled to fair compensation for your time, knowledge, and ability. On top of that, you are entitled to compensation for travel expenses. Additionally, you are providing a service of convenience. Convenience costs extra everywhere you go.
I would suggest an hourly rate of $60 per hour, billed at $15 per quarter hour increments, plus a flat travel charge of, say, $25 within a certain radius that you choose and $0.50 per mile outside that radius. Time is money, and fuel is expensive. So, for example, a customer within the service radius that has a repair that takes 1 hour and 20 minutes would bill $60 (first hour) + $30 (two 15 minute increments on second hour) + $25 (service charge) = $115 for the labor. That same repair 10 miles outside the service area would bill $60 + $30 + $25 + $5 (10 miles x $0.50) = $120.
Think of it this way, too, that your billing is not only compensating you for your labor, but also to provide growth for your business (improving or adding tools, improving/maintaining the vehicle, advertising, etc.) Your charges have to also accommodate those expenses as well. You should also look into getting a commercial insurance policy to cover E&O and PDL (errors and omissions, and general property damage liability). The premiums to pay for this insurance will also come out of those customer charges. You should be looking at this as a professional business, not a hobby, so it should be treated as one, right?
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