Believe It or Not, Cost is Just a Tiebreaker for Customers. Here’s Why.
July 25, 2018
It seems like customers are more price-sensitive than ever these days. When you need a football, it’s so easy to go to Amazon, type in “football”, sort by price, and buy the first one with good reviews. That mindset has become so common that it’s floating into the service industry. The problem is, when someone needs an oil change, there’s almost always a shop down the street that’s willing to lose money on it just to get them in the door. Given this reality, it seems crazy to think that cost is just a tiebreaker – but it’s true.
Consider this example. Every day, 17,000 people in the US buy a house. How many of those people do you think went on Zillow (or called a real estate agent) and asked for the cheapest house in town? Of the 20 million children in the US under five years old, how many parents do you think search for the cheapest child care in town?
The reality is that price isn’t as important as some other factors. In the case of houses, people place a priority on safety, school districts, house size, their neighbors, and the age of the house, among other things. For childcare, parents want to know that their kids will be safe, that they will learn and develop skills, and that they will be cared for physically and emotionally.
These decisions are so important (and so difficult to change) that people are willing to learn about what really matters before they make the decision. Then, they discuss what decision is best with their family and with experts they trust. It’s only after serious thought that they make a decision – and if there are several options that meet most or all of their criteria, price will become very important when choosing between those options. Price is the tiebreaker.
In terms of safety, reliability, and financial importance, vehicles are actually very important. They might fall behind a house, child care, and an employer, but that’s about it. The problem is that most people consider vehicles to be complex and intimidating. They also don’t have a source they think they can trust on what they really need to be fixed. That means that many people don’t ever build a list of criteria – what really matters when selecting a mechanic. Without a list of criteria, price is still the tiebreaker, but there are no other factors. This creates a race to the bottom, where only the cheapest shop stays in business.
This is what happens with that football on Amazon. It’s not worth putting together a list of criteria on footballs – life is too short. So rather than do research, most people would just buy the cheapest one that was rated well by random people on the internet they’ve never met.
The thing is, a car isn’t a football – you’re relying on it to keep you safe when you’re going 70 miles an hour down the interstate. Most people are hoping to keep a vehicle running so they can avoid spending tens of thousands of dollars on a new one. Vehicle maintenance is a very important purchase.
Helping a customer to understand and accept this isn’t hard, but it does require effort. You have to be willing to honestly tell a customer what should really matter to them, and what can be put off for now (or forever). You have to be willing to explain as much to a customer as they want to understand to help them make a good decision. Most importantly, you have to make sure to always live up to your promises, so they know they can trust you. They need to believe that you’re not trying to sell them – but instead that you’re trying to empower them to make a good decision for their own well-being.
If you can convince a customer that it’s worth their time to select a great mechanic, and you can help them understand what criteria should really matter to them, then you’ll go a long way towards fighting off the cheapest, least reliable shop in town. You’ll go a long way towards making price what it should be – a tiebreaker.
To learn how Repair Shop Websites can help you build a professional, trustworthy online image that helps you attract new customers, call us at 866-665-1605 or email us at Team_RSW@RepairShopWebsites.com.
