Page 9 - On The Move - 19-3

Here are a few suggestions:

Develop a Written Discount Policy
The manager should outline their expectations in a written policy. The first question
is: What is a discount? If your prices are competitive in your market and you have
an established pricing policy, why discount as a normal course of business? Other
By Lee Harkins Independent Service Providers (ISPs) don't do it. They have trained their people to
Chief Executive Officer address the request and say no without offending the customer. Call an ISP in your area
M5 Management Services and ask for a price on a water pump replacement. After receiving, ask them for a discount
leeharkins@m5ms.com and see how they handle your request. Why are we convinced this is a normal course
of business? How did the customer get this notion we will discount? It may be because
From a complete Service we have honored the request in the past and given them the 10% off we normally give.
Department Assessment Once you start, it's very hard to stop. Are your prices too high or is the level of value
to targeted Classroom presented too low? The excuse I usually hear is “you don't understand our customers,
Service Advisor Training they are different.” Maybe they are, but a simple NO can go a long way. Because they
options, I am here to assist asked doesn't mean they think they will get a discount.
you with all of your Fixed
Operation improvements Measure Discounts
custom-tailored to your If you still feel this is a major part of your marketing plan, then at least measure the
specific needs. For more discounts per flat rate hour written. This gives you a good comparison between advisors.
information feel free I would also recommend you spot-check the customer who receives the discounts.
to contact me anytime
at (205) 358-8717 or Check for any type of pattern.
leeharkins@m5ms.com.
A number of stores have done an outstanding job earning and growing their fleet business.
Fleet Accounts
The number of discounts should be established in a pricing policy for the customer. My
suggestion is to develop a written proposal for the customer to review and approve. Once
this is done, it's locked down.
Coupons
Why is the normal discount in coupon specials always 10%? Each discounted dollar is a

“I had to dollar off your net profit. Why 10% why not 5%, 6% or 2%? Who established this 10% as

the “Norm?”
Friend of Boss (FOB)
We have all dealt with the friends of the boss. I loved it when a customer would
call us and say, "Oh yeah, I know Mr. Dealer. He and I are good friends." Ask the
do it to dealer and he didn't have a clue who he was. Ok deal with it--it goes with the
sell the job” territory. Each situation will be different. Handle it as it comes up.
“I had to do it to sell the job”

I wish I had a quarter for every time I heard this one...
STOP accepting this reply!

I don't believe this is the rule. I believe it's the exception, but because the advisors
are focused on spending out of their pockets and not the customers, they will drop
the price without hesitation. Some managers require the advisors to see them
before discounting. This is a way to control it but has some downsides.

Don't think for a second I'm saying don't discount-I'm not. I'm saying control it! Senior
citizen discounts can be value-added, Military is a great tool, and frankly is the right thing
to do. Buyer's clubs can be a real tool in earning additional business. The advisors can be
given the latitude to discounts within the manager's guidelines.

On The Move 2022 7
O n T he M o v e 2 0 2 2 7