Thursday, February 11, 2010

Competitors Charging $50 Dent Repair San Diego - Lowball

Now I have seen this before in different parts of the states like; Texas and Florida but never in my wildest dreams think it would happen in my area anytime soon. Matter of fact, the companies who are offering these lowball prices have been around for awhile.

OK, so times are slow. But really? $50 dents? There are some big consequences that happen when a company starts to lowball or advertises such a low cost.

#1. Let's say a customer comes to the location and says, "I have a ding right here." The technician says, "Oh I'm sorry but that does not qualify for our $50 dent repair." Then explains reasons why. Meanwhile the customer gets pissed off and leaves knowing they just were pulled in with a bait and switch. Customer writes a bad review and there goes that bright idea.

#2. Company has good intensions but now is working twice as hard to earn what they could have earned in half the time. Quality starts to drop off, dents don't come out perfect and they are dealing with problematic situations often.

#3. Cause and effect. The principal behind the $50 dent repair is not a win / win situation. It will back fire either way because it draws the whole market down and soon a lot more companies would be doing it for the wrong reasons. Don't forget there are new companies getting into the market and they look for the lowest competitor and start their prices lower than that! Just like the wholesale market. All of a sudden the public assumes that a ding is automatically $50  or lower no matter what. Even if a company changes their outlook about realistic prices, the effect is done.

My conclusion is that if you really want to stay in business, sell your company quality and service. There are a lot more people who are willing to pay for quality if you target just that. In my experience, the cheapest customers are always the most pickiest. PDR takes much time, money and experience to learn. In the end, ask yourself.. am I, my trade and my company only worth $50?

If you happen to be a retail customer and have a dent, then I invite you to give us a call (800.420.3368) and speak with me personally, Myke Toledo. I will be happy to help.

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