How will u charge for DAD cars?

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How will u charge for DAD cars?

calismog
Just a question for you fellow techs and business owners.
What will you charge for DAD cars?
I cant see charging $ 20-$30 a car.
I have bills to pay , BAR and California is not helping me.
I don't think I am going to change my prices
They want us to buy new equipment and charge less? Really?
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Re: How will u charge for DAD cars?

Mark
Lets say you do 10 cars a day, that pays the bills
and gives you a package of beans to eat a week.

So now the time it takes to do a smog goes down
from ten minuets to two minuets. Your costs are
still fixed, it still cost YOU the shop owner the same
to do that smog. You can't lower your costs without
changing your business model. If you lower the price
for smogs you will have to make up the cost somewhere
else, make less money or go out of business. The
math on this is hard core and not in our favor.

Once you get Jiffy lube and Walmart involved the game
is over.
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Re: How will u charge for DAD cars?

FRUSTRATED
Hi Mark, great points you bring up, my 2 pennies yes the time will be shorter however you still have to do the visual and navigate the couple of screens, assuming inflate tires as well.  I'm thinking will go down from 15 to 20 minutes to about 10 to 15 minutes.  There are a couple of lag times on our current machines, logging into the state with the badge numbers and the dial out time it takes to communicate the result.  If these are faster with the DAD system set up that by itself will eliminate 3 to 5 minutes, take away the dyno and possible aborts and restarts, about another 3 to 5 minutes.  Just my thought on prices, we see people advertise for $12 to $18 smogs..... still not hurting us personally anyway that I know of.  Give your customers good service and they will continue to come to you.  Will there be a drop off, of course, but I don't forsee it being as drastic as some people predict, we will be gaining Hybrids as well so couple of more customers there too.
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Re: How will u charge for DAD cars?

calismog
In reply to this post by Mark
lol true
I figured if this keeps going this way I would be working for
SGS TESTCOM and to pay certs....
I feel bad for the new guys that are getting into the industry
no one is telling them how it reallyis....
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Re: How will u charge for DAD cars?

kfworry
In reply to this post by calismog
Please do not ask the State BAR clowns "how much" to charge for DAD.
It is NOT regulated by the state.
We in the industry set the price.
As it is stated by the BAR, the price is "market driven".
The state says "with potential savings of time and money",
that is all.
In a "perfect world" all 7,000 smog stations in the state could charge
the same price for DAD. I do not see that happening in my life time.
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Re: How will u charge for DAD cars?

FiendFX
In reply to this post by calismog
it seriously depends on your area. if market price around you is $40/smog and you charge $50, you might lose some customer.
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Re: How will u charge for DAD cars?

Karupt
In reply to this post by calismog
 Mark, you are right on the money , The only thing DAD is changing around these part , is more time between cars , most of us are thinking less time on a smog = i can fit in more smogs .Well what if the amount of smogs stays the same ? If you lowered your prices , than you just lost money . I am planning on taking two minute breaks between cars instead of 15 second breaks .
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Re: How will u charge for DAD cars?

thepollutants
In reply to this post by calismog
I keep hearing everyone on this forum worrying that Wal-Mart and Jiffy Lube are going to charge $5 per smog and ruin the market but how is that possible? They still have to do the visual and those chains aren't going to hire state certified techs.
007
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Re: How will u charge for DAD cars?

007
Basically diesels are them same as doing a DAD test. We charge the same price as regular smogs and no one complains. So, I see no reason to lower any prices, keep them the same to start and see what happens in your market area and make necessary adjustments from there. The shops that hire new techs with the dumbed down licenses and charge a cheap rate will not be able to do all the cars and there will still be plenty to do. Not to mention those type of shops will more then likely get citation because the techs really don't no what to look for. It is funny because everytime I see a new shop open and they low ball the price thinking they are going to do all the smogs in town which is impossiable eventually figure out they are not making any money and try to raise there prices. In most states that have the DAD program the state sets the rate that can be charged, California is the only one that has not YET. The state is trying to fuck all the shops in California and if we had a strong collition  behind us we could stop there bullshit once and for all by everyone agreeing to charge a $100.00 per smog. The consumer would be forced to pay it and everyone could get rich and retire in a short time. Unfortunately this industry doesn't want to work together, we would rather suck are thumbs and whine behind our computers about how terrible the BAR is. There are a lot of sharp minded people with good ideals on this site but with out action that's all they are ideals. If Bill Gates or Steve Jobs never put there great minds and ideals into action where would the computer industry be today? More importantly where would they be today financially? They same place most of us are heading, to the poor house, looking for state hand outs.
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Re: How will u charge for DAD cars?

FRUSTRATED
007, I had been making this same argument since last year.  The BAR is crazy to think we are automatically going to lower the prices just because the Dyno is not used.  I know we still charge the same for Diesel and nobody blinks an eye, RETURNING AND REFERRED customers anyway, the bottom feeding customer that always wants the penny less price we don't want, they are nothing but trouble, they don't maintain their cars and give you hell when they fail or better yet, blame you for their mechanical breakdown and it was them who did not pay attention to sounds or dummy lights, etc.  
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Re: How will u charge for DAD cars?

kfworry
In reply to this post by 007
Too 007,
I totally support your analysis regarding DAD pricing.
The average consumer has NO idea what it takes to run a smog check station.
I've been in automotive repair since 1973. The first 20-years in the
United States Air Force, in Special Vehicle and Heavy Equipment Maintenance.
9-years with Sacramento Regional Transit District bus maintenance.
I've been a smog tech since June 2006. I've been an owner/operator
of a test only smog center since Feb. 2008.
October 2013 was by far the slowest month since Feb. 2008. I enjoyed 5-years
2008 to 2012, of a decent income. I am not STAR certified at this time which is why
I've taken a big hit financially. But at least I can pay the rent and keep the lights on.
We need to stand our ground and not allow the little guy price us out
of business when DAD testing begins.
Like the state says "the smog check price is market driven".
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Re: How will u charge for DAD cars?

Karupt
  I agree with Frustrated and double-oh and you too Kf worry, we need to stick together and charge the same price as regular smogs , why is the state trying to punish the people who drive older vehicles that they bought with their hard earned money? why is the BAR pushing people to go further into debt with a new car and note ? the DAD will lower the failure rate and that equals less work for repair shops , It is not a win-win scenario . I think my boss is going to charge the same price also . NO lowering prices .
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Re: How will u charge for DAD cars?

kfworry
The State and Federal government "clowns" could care less about the consumer
who cannot afford a new vehicle. California calls it the "Enhanced Fleet Modernization
Program" or EFMP that is part of the Vehicle Retirement Program. To get the older
vehicles off the road.
Only ONE person at the recent BAR Advisory Group Meeting mentioned that many
vehicles are being Retired/Crushed that have "Useful Life Remaining", right after some BITCH
said "We want them off the road". Had I attended that meeting I would have had
a rebuttal for the lady calling her comment discrimination.
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Re: How will u charge for DAD cars?

Smog Newbie
In reply to this post by calismog
Hi I am researching getting into the smog biz as an owner - to buy an existing business - it has 2 bays and does around 35 smogs a day @$59 a pop.

Can you clue me in to what is really going on in the industry and why its not a good time to get in ?

Thanks for yr help !
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Re: How will u charge for DAD cars?

Mark
Why does the owner want to sell?

Are you the only one looking to buy it, if so why?

How much does he wan't for it?

Does he own the building as well as the business?

Is it a star station?

Have you talked to his two techs they may be leaving hard to get one sometimes.

Do you have a smog license?

Is there a possibility of rezoning if ownership changes?
No allowing you to run a shop from there.
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Re: How will u charge for DAD cars?

dlll
This post was updated on .
In reply to this post by calismog
I totally agree with you, but their will always be someone out their that just eats fish head soup or beans. I myself like meat. It will be the same price as my regular smog
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Re: How will u charge for DAD cars?

kwest
Charge EXACTLY THE SAME. Why should you take a hit in the wallet just because BAR wants an easier machine?
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Re: How will u charge for DAD cars?

smog king101
In reply to this post by dlll
Charge The same . We Have to Spend On This equipment . Just Provide Good Customer Service And People Will Come To u.
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Re: How will u charge for DAD cars?

Monkey
We charge 49.95 plus cert and van with dog house 50.00 up charge with no complaints on price. We are doing 13 to 17 cars a day and the shop across the street is charging 36.00 out the door and he said he does 5 to 8 cars a day and both of us are Star.
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Re: How will u charge for DAD cars?

smogman
In reply to this post by calismog
Agree, can't see ppl charging $20-$30/smog.  Forget the $20/smog. For $30+cert you still don't make $$$.  Most test only centers got on average about 200 smogs/month, with $30 smog it only brings in roughly $6,000/month revenues. After rent $2,000, insurance + utilities $1,000, full-time tech $3,500, you ended up paying at least $500 out of your pocket, if not $1,000.

I don't think we're going to change our prices.  Our goal is to charge an average of $60 include certificate per smog.  So, good luck for those want to charge at $19.95!!!
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