1 Year Of $60 OIS Smogs

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1 Year Of $60 OIS Smogs

Able
Here's my experience of raising prices to $60 for OIS smogs vs $50 with cert. I started this experiment at the beginning of 2019 and now its 2020 so its been a whole year.

2018
Total Smogs 4368 X $50= $218,400 Gross

2019
Total Smogs 3432 X $60= $205,920 Gross

Thats a total of 936 LESS Smogs and $12,480 LESS gross income a year. Thats a big chuck. However this is fairly inaccurate as I didn't account for BAR-97 inspections, which has also been increased!

So its definitely LESS money. But let me tell you, I have a lot more time and freedom to pursuit other hobbies and entertained myself at the shop, and spend more time with family. Bonus, I also feel like my shop has a better presence as we charge higher and we are filtering out populations that want $30-$40 smogs with certificate. (Nothing wrong with that population, but I do feel like the shop is running smoother and I have NO problem rejecting customers that want $30-$40)

2016
I started at $40 a smog with cert and I was NOT MAKING ANY MONEY AND ALMOST WENT BANKRUPT! My shop was new and I needed to get clientele. Had lots of coupons for $30 a smog.

2017
$50 a smog with cert but I had lots of coupons for $40 a smog

So "Charge more and be Happy"

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Re: 1 Year Of $60 OIS Smogs

2002
Good job, keep up the good work
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Re: 1 Year Of $60 OIS Smogs

444O444
In reply to this post by Able
i did the same 2.5 years ago.

very happy about it, of course less money but more time and more quality customers:)
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Re: 1 Year Of $60 OIS Smogs

SoCalSmogGuy
In reply to this post by Able
Able wrote
2018
Total Smogs 4368 X $50= $218,400 Gross

2019
Total Smogs 3432 X $60= $205,920 Gross
Very interesting and thank you for sharing your numbers. Raising prices and getting into a 'better' customer pool is a great business strategy.
Work Smarter AND Harder
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Re: 1 Year Of $60 OIS Smogs

Gabeluq
Interesting results, honestly not too much of a drop off. I also think the new 8 year exemption played a large part in your drop off. We all missed out on all those vehicles. I bet you would of made more money than 2018 if that new law didn't come in.
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Re: 1 Year Of $60 OIS Smogs

No One
In reply to this post by Able
I charge $60 ois. Yesterday I had customer ask me why I charge more than other shops and I said, "sir, ive been charging $50 out the door since I opened up in 2005. Everything in this state is going up and its in my best interest to charge more. And if you want to go somewhere else because im charging more, then do so. These shops that are charging less will soon follow and prob end up charging more than me in the next coming years. And if you want to haggle me, I'm going to hold my ground and say sorry I cant do that price."

He mentioned that the smog shop where he usually goes is charging $30 and I told him that if hes testing 10 cars a day, hes making only $200 day and that he might as well quit and go work at Walmart. To which he agreed.

I'm also starting to see shops charge $70 for OIS and $90 for BAR-97.

Good shit, Able. Charge more be happy.
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Re: 1 Year Of $60 OIS Smogs

444O444
This post was updated on .
the other day i got a customer with 2015 lamborghini, just bought it. he brought me a coupon from down the street for 23.75 + cert for 2000 and newer cars. and wants me to match it. flashed him down the street;

the point is with this kind of customers there will always be prices like 20 + cert around
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Re: 1 Year Of $60 OIS Smogs

Able
In reply to this post by Gabeluq
Gabeluq wrote
Interesting results, honestly not too much of a drop off. I also think the new 8 year exemption played a large part in your drop off. We all missed out on all those vehicles. I bet you would of made more money than 2018 if that new law didn't come in.

Thats right, I forgot about that. My area has lot of those as well.
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Re: 1 Year Of $60 OIS Smogs

Able
In reply to this post by No One
No One wrote
I charge $60 ois. Yesterday I had customer ask me why I charge more than other shops and I said, "sir, ive been charging $50 out the door since I opened up in 2005. Everything in this state is going up and its in my best interest to charge more. And if you want to go somewhere else because im charging more, then do so. These shops that are charging less will soon follow and prob end up charging more than me in the next coming years. And if you want to haggle me, I'm going to hold my ground and say sorry I cant do that price."

He mentioned that the smog shop where he usually goes is charging $30 and I told him that if hes testing 10 cars a day, hes making only $200 day and that he might as well quit and go work at Walmart. To which he agreed.

I'm also starting to see shops charge $70 for OIS and $90 for BAR-97.

Good shit, Able. Charge more be happy.
Yeah, I am seeing that too. $70 is very nice.
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Re: 1 Year Of $60 OIS Smogs

WealdstoneRaider
In reply to this post by Able
How much is your lease in OC? Is the 205k enough to feed you & your worker?
want sm'ting I'll give it to ya
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Re: 1 Year Of $60 OIS Smogs

dcf1ver
In reply to this post by Able
Nice.

We are a T and R and smogs take a back seat to our primary business(repair)

We do OIS only and charge $75 per + certificate.

At that price we dont get a lot of smogs,but its mostly for our regular customers anyhow....
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Re: 1 Year Of $60 OIS Smogs

Best Answer I Can Give
 Those prices before or after Cert?
 Never make fun of the choices your wife makes. You were one of them.
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Re: 1 Year Of $60 OIS Smogs

805smogtech
In reply to this post by dcf1ver
dcf1ver wrote
Nice.

We are a T and R and smogs take a back seat to our primary business(repair)

We do OIS only and charge $75 per + certificate.

At that price we dont get a lot of smogs,but its mostly for our regular customers anyhow....
Where I'm at now most shops charge between $40-$50 + cert for OIS and most offer a $29.99+ cert coupons in the local newspapers. Charge $75 in this area and you wouldn't get any ois smogs.
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Re: 1 Year Of $60 OIS Smogs

xcinlb
In reply to this post by No One
No One wrote
He mentioned that the smog shop where he usually goes is charging $30 and I told him that if hes testing 10 cars a day, hes making only $200 day and that he might as well quit and go work at Walmart. To which he agreed.

I'm also starting to see shops charge $70 for OIS and $90 for BAR-97.

Good shit, Able. Charge more be happy.
We periodically get the customer stating so and so down the street does it for $30, so why are they not at that shop? Usually that is a BS line. Depending on how busy we are that day, we may offer $10 or $15 off if OIS or decent BAR 97.

Good to see some are raising fees and making their time, work or investment in our industry worth what it should be. This is our livelihood and we can't let the low ballers devaluate it.

BTW that Lambo would pay $120 at our shop. We aren't taking a chance on a small scratch or  on at $100k or more vehicle for $30 bucks.
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Re: 1 Year Of $60 OIS Smogs

xcinlb
In reply to this post by Able
Able wrote
Here's my experience of raising prices to $60 for OIS smogs vs $50 with cert. I started this experiment at the beginning of 2019 and now its 2020 so its been a whole year.

2018
Total Smogs 4368 X $50= $218,400 Gross

2019
Total Smogs 3432 X $60= $205,920 Gross

Thats a total of 936 LESS Smogs and $12,480 LESS gross income a year. Thats a big chuck. However this is fairly inaccurate as I didn't account for BAR-97 inspections, which has also been increased!

So its definitely LESS money. But let me tell you, I have a lot more time and freedom to pursuit other hobbies and entertained myself at the shop, and spend more time with family. Bonus, I also feel like my shop has a better presence as we charge higher and we are filtering out populations that want $30-$40 smogs with certificate. (Nothing wrong with that population, but I do feel like the shop is running smoother and I have NO problem rejecting customers that want $30-$40)

2016
I started at $40 a smog with cert and I was NOT MAKING ANY MONEY AND ALMOST WENT BANKRUPT! My shop was new and I needed to get clientele. Had lots of coupons for $30 a smog.

2017
$50 a smog with cert but I had lots of coupons for $40 a smog

So "Charge more and be Happy"
Good job!  The trick is to keep regular prices high and use a coupon. So in your case raise your price to $65-70 or so and then negotiate if you need too. It's the same tactic that airlines, hotels and rental cars use. Ever see that little card on the inside of the door of a hotel room? It usually has an insanely high price on it. We stayed at a La Quinta in, for about $135 per night, but the card had a fee of the room on it for $500 per night! That is obviously an exaggeration and we could not (un luckily) get away with that.
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Re: 1 Year Of $60 OIS Smogs

Best Answer I Can Give
 Hope you are more than Test Only.
3432 divided by 307. 307 being the amount of days a shop is open.  Counting the six major holidays. Closed on Sunday
That is a little over 11 a day.

 Lets say 12 a day. On a 8 hour day that is 1.5 a hour. 8 to 5 like I do, 9 hour day that is 1.3 an hour.

 3432 divided by 365 is 9.4 a day

 You better do high $$$$$ checks just to pay the bills.
 Never make fun of the choices your wife makes. You were one of them.
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Re: 1 Year Of $60 OIS Smogs

none
In reply to this post by xcinlb
xcinlb wrote
... The trick is to keep regular prices high and use a coupon...
I don't do coupon games and I think it helps people trust me. I don't want to have three people in my waiting room with the same cars paying three different price.
People are usually shocked when they find out I'm not a very good electrician.
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Re: 1 Year Of $60 OIS Smogs

No One
none wrote
xcinlb wrote
... The trick is to keep regular prices high and use a coupon...
I don't do coupon games and I think it helps people trust me. I don't want to have three people in my waiting room with the same cars paying three different price.
I put coupons out a long time ago. No one and I mean not one person showed up with coupons that I put out. But lately I've been getting new customers coming to me because of the shops that closed up around and I've been stapling them to the customers invoice in hopes that they will return or maybe hand it out to a family member. I unlike you none, do not get 30 cars a day coming in. On a good day, ill get 10 or more come in. My location isn't very visible, im located in an alley where I have to compete with surrounding business for parking and also watch out for the ticket lady doing her annual runs through out the day(no parking at all in the alleys). The mechanic shop next door is always getting tickets. One time when we all weren't paying attention, the ticket lady got 10 cars. Some of those were my customers(they didn't come back to me after that).    
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Re: 1 Year Of $60 OIS Smogs

XXAMM1
I am a star test only.OIS- $60.75 plus cert.Just recently raised BAR 97 prices-96-99 $89.75.
75-95 $99.75.Finding a number of 'star stations' around here are always claiming their machine is down.
I like testing the older vehicles,BAR 97 was all anyone did up until 2013 anyway.
   I run a coupon for 2000 and newer only,new customers only,cash only.
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Re: 1 Year Of $60 OIS Smogs

none
In reply to this post by No One
NO-ONE, Don't sell yourself short though. I am sure you would get plenty of return customer and referrals anyway but I get the idea behind what you are doing.

You bring up a good point on advertising costs versus high rent location. I don't advertise at all anymore but I pay fairly high rent for my location. In the beginning I advertised a lot with little reward but I would put up banners until my city code enforcement made me take them down and wait a while and put one up again. Now that I'm established my sign and my free Google and Yelp reviews are enough.
People are usually shocked when they find out I'm not a very good electrician.
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