The service manager backed down and refunded all labor to the customer as part of his pacification program.
Well, obviously that is a foolish approach that is destined to backfire in all directions. That person has no place in customer facing situations. Taking a stand when appropriate is good and necessary. When compensation is called for, it should be at an appropriate level. You don’t refund the entire amount unless you’ve done something to warrant it. That just breeds more of the same. Bet dollars to donuts this customer has played this guy for a sucker before. And he’s bragging it up to all his friends who will want to test the waters too…
“I bet a lot of the people using coupons are trying you out for the first time. That is the worst possible time to give a sub-par performance.”
Exactly why it’s a horrible idea for a business to use a coupon in any situation where the employee pay is directly related to the customer’s bill. And yet the first thing almost all auto shops do is advertise something cheap in an effort to get people in the door.
Here the only people who get coupons are established good customers, as a way of thanking them for their continued business.
@TwinTurbo, this actually is not that rare and happens all of the time; and you’re exactly right; the service managers are being played for fools.
One example is a 300 dollar estimate that went 14 cents over one time because a sales tax increase approved by voters had taken effect during the 2 or 3 weeks the car was down awaiting an obscure part. The customer went ballistic over that 14 cents and the service manager gave the guy 100. 14 in a refund to pacify him; making the bill 200 even and a money losing job for the company. The service manager then went and backflagged the mechanic’s wages even though the repair was done properly.
The mechanic (a very good one) said this was not gonna happen and got fired for a “negative attitude”.
A full or partial refund on a legitimate screwup is one thing but often what happens is the mechanic gets hammered even on a non-justifiable gripe.
Look at the GM ads on TV promoting a 59.95 front brake pad job; parts and labor inclusive with fine print about extra parts and services possibly needed.
That can be a slippery slope to travel on as the customer expectations may not be what they expect for that price.
I confess to not having plodded through the entire thread in detail, however in brousing it there appears to be a belief that how employees are paid is only between the employer and the employee, unregulated by state regulations promulgated to ensure complance with the Federal Fair Labor Standards Act. Shops can charge however they want, but they must pay in complance with the “Act”. The average tech in the average shop is not exempt under the Act.
I gave a list of ridiculous things that can happen working flat-rate, and let me assure you they are common business practices and perfectly legal.
Federal law specifically states that flat-rate technicians at car dealerships are exempt from overtime pay. So you get your hourly flat-rate and that’s it.
Now lets say I hire you to work at an “average” shop. I hire you for $20/hr flat rate, meaning you earn in hours what you bill out. I require you to be at work for a full 40 hours per week. Last week you were there for 40, but only billed out 28 hours. Your gross pay is 28 X $20 = $560. Sure I required you to be clocked in for 40, but minimum wage is $7.25. 7.25 x 40 = $290. I’ve paid you according to our agreement and met the requirements of the law.
Like any industry where the pay is commission or performance based there are hundreds of different compensation packages.
Here is a cut and paste from another forum (for auto professionals) that just happened to show up today:
“The old plan gave every tech a reasonable guarantee each
week if they did not turn 40 hours. All of these guys are
good hour turners and made it most weeks. Then, when times
got slow recently, these shops implemented a low flat rate
only system where the shop pays the tech $10 per hour from
hour one to hour twenty. Then the bumps start for the pay
scale. In the end, if you turn 40 you will actually be paid
a higher rate than the old plan. Sounds good right? Well
that lasted for about a week during the slow time and
everyone quit and went elsewhere.
He said that it was put in place to make the
techs hungrier for so that they would try to upsell more
work as it came in. What disturbed me the most is that the owner said that if he
is suffering due to lack of business, so should his
employees.”
So for the average driver out there looking for a “good deal” on auto service, think about this: If the shop owner is willing to screw his employees this way, how bad do you think he’s going treat his customers?
Wow. What’s with the axe to grind on real estate agents? Made some bad decisions choosing one? My experience with real estate people has been quite good.
No, I’m saying that there are cheats and thieves in every kind of business, this was just one example of a shop owner who has no clue about how to run a business. I’m not privy to professional fora in the real estate, dental, legal, plumbing or any other industry but I’m sure there are poor managers aplenty out there.
I am neither boastful nor ashamed of being in this business. I do my job with honesty, integrity, and quality. I know it and that’s all that matters. I don’t need anyone to confirm or deny it.
Most mechanics are honest and perform an often mind-numbing, thankless job day in and day out. Everyone hears about the complaints but seldom does anyone hear about a job done right.
Many car owners assume the solution to a problem is always a black and white issue and it’s not that way at all.
While mechanics and shops are often vilified (sometimes with reason, sometimes not) what the news never reports is anything to do with the countless number of ways customers are unethical in their dealings with auto repair shops. The thickness of the book on that…
I’ve had good luck and back luck with mechanics over the years.
The chain stores are the worse. Most have the model of mechanics getting a commission for every part they sell. This has lead to many places replacing perfectly good parts…just so the mechanic can get more money that month.
Dealers are hit and miss also. Some dealers have that same chain-store model which leads to mechanics becoming dishonest. Even if the dealer is honest their prices are still much higher then the local independent. Here in NH…the difference is a bout $40/hr DIFFERENCE.
Local independents have always the best. But even they have problems. Many times a good mechanic decides to go on their own and opens up their own shop. The problem is that they have no idea how to run a business and they end up failing. One guy I know who’s retired now…had a great business…He was very good and well respected mechanic. And his wife had a BA in business. So she ran the business end…and he and one or two other guys did all the mechanical work.
What disturbed me the most is that the owner said that if he is suffering due to lack of business, so should his employees."
Well, this guy was a real tool in many regards based on what you say but this last part is true in any business. The only difference is where I work, they don’t just cut your pay, they immediately start cutting heads. Back in the 80s, I worked for a place that sucked it up and the owner suffered greatly rather than command workforce reductions. Once business rebounded, we had 100% employee retention even in the best of times. Only one way people were leaving that place. People were beating down the doors to get in so we could pick and choose only the cream of the crop so to speak. But that was a private company and he was an exceptional owner.
Today, you have one bad quarter and most companies are eyeing headcount. How the business goes, so goes your fate. In better companies with profit sharing, employee welfare is directly tied to company profit. Company isn’t generating profit, neither are you. Fall below a threshold and you’re out of a job. Not many businesses that will insulate you as an employee from the realities of needing to be profitable…
@TwinTurbo–Public colleges and universities have a great way to deal with declining enrollments–hire more administrators. The university where I taught though enrollment might decline. The second in command visited one department where this high level administrator announced that there might be cutbacks in faculty due to declining enrollment and financial exigency. One faculty member asked, “Will there be similar cutbacks in administration?” “Oh , no”, the administrator answered; “With declining enrollment and decreased revenues I believe we will need even more administrators to handle the problems that we encounter”. The sad thing was that this administrator was serious.
The former governor of Indiana, Mitch Daniels, took over the presidency at Purdue University in January. He froze tuition for two years and no administrator earning over $50,000 will get a raise. He has a goal to save $40 million dollars for the next academic year and he his 80% of the way to this goal. He also cut the president’s salary and put any of his own raises on his performance. I wonder what the presidents of other major universities think of Mitch Daniel’s idea.
