What do you say when a customer has a cheaper estimate?

Ask to see the other estimate and compare it with yours, line by line, with the customer watching. Most of the gap comes from what the two estimates contain, usually the grade of the parts or a line one shop left off. Sometimes it is a shorter warranty. Show the customer where the difference is and let them choose. Match the price only when the other estimate covers the same work with the same grade of parts.

Key takeaways

• Treat the cheaper estimate as a question. The customer brought it back because they want a reason to stay.
• Compare line by line. Parts grade and missing lines explain most gaps.
• Match only when the jobs are the same job. Decide your matching rule once and write it down.
• A customer who leaves on price should leave on good terms, with the declined work logged.

What do you say when they hand you the other quote?

Thank them and ask to see it. Then compare the two out loud. Word for word:

"Thanks for bringing that in. Can I take a look? I want to make sure you're comparing the same job, because these can look alike and cover different things. Give me two minutes and I'll walk you through both."

Then go line by line with the paper facing the customer. Describe what you see and leave the other shop's motives out of it:

"Theirs uses an economy strut, and ours is closer to the original part. I don't see an alignment on theirs, and you'll need one after struts. Their warranty is a year, and ours is three."

Close with a choice:

"If price is the main thing, I can requote ours with the economy struts so you're comparing the same job. If it were my car, I'd do the one on our estimate, and here's why."

If the customer calls instead of coming in, use the same order on the phone:

"Totally fair to shop around. Could you text me a photo of their estimate? I'll call you back in ten minutes and tell you exactly where the difference is."

Why do two estimates for the same repair differ?

Because they are usually two different jobs with the same name at the top. Check these four things, in this order:

1. Parts grade. The Federal Trade Commission tells car owners that new parts can come from the vehicle maker or an independent company, and "Prices and quality of these parts vary." An OEM part and an economy aftermarket part can be hundreds of dollars apart on one line.
2. Missing lines. Some related work sits outside a labor operation on purpose. Mitchell 1 explains why many of its suspension times carry a note that says "DOES NOT include alignment." An estimate that skips the alignment, the single-use bolts or the fluid is cheaper because it is shorter.
3. Labor. One shop quoted published time and the other quoted from memory. What to do when book time is way off covers where those gaps come from.
4. Warranty. The FTC tells customers to "compare warranty policies on repairs" when they shop around. A one-year and a three-year warranty on the same repair are different products.

If the customer paid your shop for diagnosis before shopping the repair, that charge stands on its own. Should you charge for diag when you can't duplicate it covers how to present it.

What does a line-by-line comparison look like?

An illustrative example. The job, prices and warranties are made up to show the method.

The headline gap is 591 dollars. The alignment and the bolts account for 187 dollars of work the other estimate never included. The parts grade accounts for 314 more. What's left is a 90 dollar labor difference and a shorter warranty. Say it to the customer in those terms:

"About 190 dollars of the difference is the alignment and bolts they left off, which you'd end up paying for anyway. About 310 is the struts. The rest is labor and a warranty that's two years shorter."

Should you match the price?

Decide with a rule, and give every advisor the same one.

Matching an estimate that leaves out work is the expensive mistake. The shop either does the missing work for free or calls later with a supplement, and the customer hears that call as a bait and switch. An advisor who matches case by case also teaches regulars that your first number is negotiable.

If you do match, write the policy in one sentence and tape it by the counter. For example: "We match a written, itemized estimate for the same work, the same parts grade and a comparable warranty. We don't match estimates that leave out work." Every advisor then gives the same answer.

What does a shop owner say about the cheap part?

Craig Schmitke has been at Precision Automotive of Utah since it opened in 1986. On The Mechanica Show, Episode 1, he described a rack and pinion on a Chevy Malibu with electronic steering. The aftermarket rack was about 1,500 dollars and the OE one about 5,200. His team had been reading in technician forums that the aftermarket racks didn't work on that car. In his words:

"They don't program properly, and they just don't work."

Craig Schmitke, Precision Automotive of Utah

The job came to 6,500 dollars installed, and the shop went OE:

"But if we don't do it that way, we're not taking care of him."

Craig Schmitke, on choosing the OE rack for his customer

That is the conversation behind a lot of cheaper estimates. The part that saves money today can turn into a comeback next month, and saying so plainly is doing the customer a favor.

What if the customer takes the cheaper one?

Let them go graciously. The last thing they hear from you is what they remember:

"No problem at all. I've put our quote in your file, so if you ever want it, it's here. And if anything feels off after the repair, call me and we'll take a look."

Put it on the RO so the follow-up has something to say:

DECLINED: Front struts, alignment, bolts. Quoted [amount], [date].
Reason: customer chose lower quote elsewhere (economy parts,
no alignment). Follow up: [date, about 3 weeks out].

Add it to your declined work list, and a declined work log makes those calls easy to schedule. If the cheaper repair fails and they come back, fix the car and skip the told-you-so.

How do you get fewer of these conversations?

Name the parts on every estimate. A customer comparing two totals picks the lower one. A customer comparing two itemized estimates sees the alignment on yours and the empty space on theirs. California's Bureau of Automotive Repair already requires that "An estimate must contain a description of the specific job and the estimated price for all parts and labor," so the itemized version is the one that holds up anyway.

On jobs where grades vary a lot, like struts and batteries, put two priced options on the first estimate. Say the warranty out loud when you give the price. Customers rarely ask about it, and it's often the biggest difference between two quotes that look alike.

The whole comparison works only if your advisor can say where each number came from. Mechanica writes every line with its source beside it, so when a customer holds up a cheaper quote, your advisor can point to the published labor time and the supplier price on the line instead of defending a total.

More on the conversations at the counter is on the blog.