How to Sell Targeted Repairs

Over the past few weeks, I’ve received numerous inquiries about my last article. I’ve also helped two shops deal with customer complaints that could have been avoided if they’d used the warranties I covered in that article.

In the previous issue, I explained how you can guarantee targeted repairs while protecting both your shop and the customer while providing added value to justify your price. It’s a good idea to review that article in preparation for this one.

In this article, I’m going to share an example of how to explain and sell targeted or diagnostic repairs using the “Informed Consent” warranties presented in the January/February issue of GEARS Magazine.

A Quick Review

Today, most shops provide a written warranty on major repairs. Whether it’s the ATRA Golden Rule Warranty or one you’ve cobbled together by copying from other companies, chances are your written warranty does the job for you.

However, today’s vehicles may display serious symptoms while not requiring a rebuild. Targeted mechanical, computer, and electronic repairs often run into thousands of dollars, and the customer reasonably expects a warranty.

This raises the question, “How do you protect your customer and your shop when you perform targeted repairs?” If something goes wrong, you were the last one to touch it, so customers often think you’re responsible.

• You can’t issue a transmission rebuild warranty because you didn’t rebuild it.
• You can’t predict how long the repair, or the transmission itself is going to last afterwards.
• You shouldn’t take the risk of issuing a vaguely written warranty or relying on the vague interpretations of the Implied Warranty statutes described in my last article.

How can you both sell and warranty the targeted repair? For the answer to part two of this question, reread my last article in the January/ February issue. Now let’s look at how to sell the job and use the “Targeted Repair Warranty” as a sales tool.

For purposes of this article, I’m going to assume that you offer some level of a no-charge preliminary check before you recommend any service, repair, or give an estimate. Examples might include Free Road Test, Free Performance Check, Free Visual Check, Free Pre-Check, or Free No-Wrench Inspection.

The key to making any sale is to eliminate the customers’ confusion and provide them with enough information to make an informed decision. The following steps and explanations can easily be adapted to fit just about any situation you’ll face in selling transmission services or repairs.

1. Explain the purpose and process of the Free Precheck.
   • The purpose of our Precheck is to confirm the concern you’re experiencing with your vehicle. (Describe the concern and ask if there is anything else).
   • Our Precheck includes a road test and visual checks, so we’ll be in a better position to advise you.
2. Explain the “Possible Results” of the precheck.
   • There are essentially four possible results of the Precheck.
   • We might determine that your vehicle is operating correctly and there is no transmission problem at this time.
   • If we do find a problem, it could be something that can be repaired by a minor service or repair. In this case, we’ll give you a quote to take care of the problem.
   • If it turns out to be a major problem that requires rebuilding your transmission or a transmission replacement, we’ll usually be able to give you an approximate time frame and price range to complete the job.
   • However, the results of the precheck might be inconclusive. In this case, we’ll need to perform more extensive diagnostics to figure out what will correct the symptoms and the root cause. If we don’t correct the cause, the symptoms will only recur.
3. Explain the results of the Precheck and selling the next step.
   • The results of the Precheck confirm that the transmission if working correctly. At this time, we recommend that you (you might sell a preventive service or recommend driving and rechecking at a future date or mileage).
   • The results of the Precheck indicate that a (describe the service or repair) will correct the problem. We can complete this repair/service for $______, and we can have your vehicle ready by (insert day and time), or (schedule an appointment).
   • The results of the Precheck confirm that your transmission has suffered major internal damage and will require (rebuild or replacement). (Continue to sell the major job as you normally would).
   • The results of the Precheck were inconclusive. This means we’ll need to do more diagnostics to determine the corrective steps needed to resolve the problem. These steps include such things as more extended road testing, electronic and computer diagnostics, and electrical testing. This falls under our (Level 1, Level 2, or Level 3) diagnostic service. We’ll need to have your vehicle for ___ (hours or days) and our fee for this service is $______. In some cases, the diagnostic process itself resolves the problem, and if this is the case, your total labor cost is limited to the diagnostic service fee.
4. Explain and Sell a Targeted Repair.
   • We’ve confirmed that the symptoms your transmission is exhibiting are the result of the failure of (insert the source and cause).
   • There are two ways we can approach resolving your problem.
   • We can perform a targeted repair, or we can rebuild/replace the transmission.
     • The targeted repair is the least expensive option. In this case we will replace the specific parts that we’ve confirmed are causing the symptoms. We know that at the very least you’ll need these parts replaced to correct the problem.
     • These include: ___________ ______________________ ______________________.
     • The cost to do this targeted repair is $______ labor and $______ for parts.
     • However, we won’t know if this will resolve the entire problem until we do the job.
     • Unfortunately, even if it does correct the symptoms, we cannot predict how long the transmission itself will last because we don’t know the condition of the parts and components located inside the transmission. They can only be inspected if we remove and disassemble the unit.
     • However, for your protection and peace of mind, we do offer a labor guarantee.
     • If at any time in the future, additional transmission repairs, a rebuild, or a replacement transmission is needed, we will apply (___%/$____) of today’s labor charge toward those future repairs.
     • So, since we know you need these parts at a minimum, all you’re risking is (___%/ $____) of today’s labor – $______.
     • If you prefer, we can rebuild/ replace your transmission.
     • If you choose this option, we will guarantee that your symptom(s) and the cause(s) will be resolved, and we’ll guarantee all parts and labor for ____ months / _______ miles.
     • (Explain and sell the job as you would with any major job.)
     • The total price of rebuilding/ replacing your transmission is $________, and again it is fully guaranteed for ____ months / ________ miles.
     • So, we can do a targeted repair for $_______ with a (___%/ $____) labor guarantee or a complete rebuild/replacement for $_______with full parts and labor guarantee.
     • That’s a difference of $______; which of these options do you feel is best for you?

Last month’s article included samples of Informed Consent Warranties that you might use once you’ve modified them for your shop. I suggest that you reread that article and review the sample warranties. I also recommend that you use the right warranty for the repair option you’re presenting as a guideline for presenting the repair option(s).

The Features and Benefits of Informed Consent Warranties

1. They don’t expire. Remember, after a warranty expires, the customer isn’t bound by its terms or conditions, and the Implied Warranty rules of discovery may kick in for up to 4 years.
2. They explain what you’re doing and why. This addresses the, “I don’t remember” scenario.
3. They say what you’ll do if it fails. You choose whether to offer a percentage or fixed dollar warranty credit. It takes the guesswork of the “what to do if” scenario.
4. They limit the shop’s exposure to lawsuits. As with the doctor, the customer has been informed of the risks, and they’ve given their consent.
5. They help keep customers for life. They have a financial incentive to return it to you for as long as they own their car. This keeps them out of competing shops and gives you the chance to do future repairs with a modest “preestablished” warranty credit.

When done right, warranties build value and create long-term customer relationships. If you have any questions, please email to coachthom@gmail.com or call (480) 773-3131. I’m always happy to help my readers with any questions or in getting things off paper and into practice.

Thom will speak at this year’s Powertrain Expo. His session will save you the cost of coming to Expo and will continue to pay future dividends. Don’t miss “10 Fatal Marketing Errors that Shops Make… and What You Can Do About It.” Keep an eye out for more details.