Flat rating pricing , she said , is what many auto dealers do . Dealers should set prices for service work by the specific job - blade sharpening or chain sharpening - not by the hour . This includes the cost of parts and should be 70 percent of a dealer ’ s service work .
Next , she said , is menu pricing like in a restaurant , only for basic services . This is good for pre-season service work , for example . Paul ’ s Lawn & Garden uses both these pricing structures ; it has menu options for “ basic ” service up to a “ total ” service that includes the basics plus several more workups . Menu pricing , said Hey , should account for 20 percent of a dealer ’ s service work , and the price the customers see includes the cost of needed parts like filters and lubricants .
The other 10 percent of a dealer ’ s service work should come from time-and-material jobs . “ Pricing by time and material works when you have to diagnose problems ,” said Hey . “ Put your best technician on these jobs .”
“ Most dealers still don ’ t flat-rate , because there isn ’ t an industry standard for flat-rate pricing ,” said Tim Berman . Consultants will sell a dealer their pricing guidelines , but nothing comprehensive exists today . Many dealers that do flat-rate have
Clay ’ s Power Equipment in North Carolina posts a menu of service prices on its website , while some dealers post “ contact us .”
either written their own internal guide for common jobs or have purchased one from a consultant .”
We did find a few OPE dealers that post service pricing on their websites , though it seems most dealers prefer the “ contact us for service pricing ” method .
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