Windshield Repair Pricing

The Wise Crack - July-August 2005

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What should I charge for a windshield repair? I hear that question a lot. It is probably the most difficult question for me to answer for a new technician. Pricing depends on so many different factors that it is almost impossible to give someone a straight answer, but I’ll try.

The best way to find out how much you should charge in any given area is to survey your competition. Check out all the glass shops, mobile techs, and any other businesses offering windshield repair. Then check with wholesale accounts (car lots, car rental companies, and other fleets) to see how much they are paying. That should give you a good starting point. Your next job is to determine how you want to position your company in relation to your competition.

Unless you are lucky enough to have a large windshield repair market all to yourself, you will find that your market will be filled with the same type of characters that inhabit the rest of the business world. There will be those that sell on price, and those that sell on quality. Because windshield repair is a service industry, it isn’t feasible to compete on both fronts. If you are taking the time and effort to perform the best possible repairs, then you can hardly afford to compete on price with someone that is spending just a couple of minutes on each repair and calling it good.

A company that positions itself as the lowest price alternative in the market is bound to get some work, maybe even a lot of work from their pricing alone. There is always going to be a certain segment of any market that will make their decision solely on price. The idea behind this kind of business model is to make up for the smaller profit of each repair with volume. Many windshield repair technicians try to break into the market this way.

A company that positions itself as the leader in quality and service in the market will not have the advantage of simply undercutting competitors pricing for market share, but there is always that segment of the market that will make their decision based on service, and the quality of your product. The idea behind this business model is that although the number of accounts you can secure early on may be limited, the increased profit per repair will make up for the lack of volume.

On the surface, both of these models seem workable for starting your new windshield repair business, but if you look a little closer you will see that one has some huge advantages over the other. The biggest advantage you will have if you build your company around being the leader in service and quality is LOYALTY. If you get customers based on price, you can lose them just as easily when someone offers to do the job for a dollar or two less. So, it may seem like a good idea to approach accounts in your market with a lower price to acquire business, but in the long run you may be doing yourself a real disservice.

Another benefit of avoiding the rock bottom accounts is TIME. By turning down the cheapos, you can focus on building your business with better paying, loyal customers. Instead of working your rear end off to land and service an account that will not pay you what you are worth and then dump you because they found someone cheaper, you can spend your time more wisely. But remember, if a potential account doesn’t appreciate what a great repair is, it is your job to educate him.

A customer that has been educated about windshield repair, understands the difference between quality and inferior work, and understands the importance of having it done correctly, is the type of customer that will be loyal and even refer you more business. This is the part of the selling process that many new technicians overlook. If your customer doesn’t know that it is important that the repair is perfectly flush with the glass, or that all moisture must be removed and why, he can’t base his decision on anything but price. It is your job to make sure he knows the difference between your repairs and the repairs your competitors are selling.

-Matt Larson

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