Charging a storage fee for vehicles left longer than 48 hours

R

Richard Grasa

New member
Ok so I've got a wholesaler, a cheap SOB who is always trying to haggle the price and get more work done for less money. I've got a Ford Lightning at the shop that I've had here for about 2 months getting a full wetsand/compound with a HUGE break on the price which I'm now kicking myself for. I finished it 4 days ago and he said he'd be here 2 days ago to pay and pick it up but he hasn't shown yet. I need this thing gone to free up some room so I decided to start charging anyone who leaves their vehicle here for more than 48 hours after completion a $35/night storage fee to motivate them to pick it up. So I call him a few minutes ago to tell him and he gets all mad that I'm going to start charging this fee. I told him this isn't a free place to store his vehicles so come get it today or the fees are going to start adding up.



I've seen these storage fees at just about every mechanic's shop and what not I've been to, so would you say it's fair for me to start charging a fee? And does $35/night sound fair? I don't so much care about it being a "fair" price, but if someone gets mad about it, I think I'm in the right to charge the fee. What do you think? I actually think $35/night is on the low side and 48 hours is more than a fair amount of time before the fee gets charged.
 
He is actually reducing the size of your shop by storing his truck there, and possibly costing you money, plus you're insuring the truck, and now have the risk of damage occurring to the truck. Yeah $35 is very fair.





John
 
1st off Wholesalers suck balz and they are the real scum of the dealer industry IMHO. They are known to abuse detail shops on not just price, but storage of their cars. I've dealt with quite a few in my day and they are all the same.



2nd -

Did he sign a repair order stating that he'll be charged a storage fee?

Do you have a sign posted in plain view about your storage rates?



If not, you'll have a slim chance of *legally* recovering any storage fees. You need to send him acertified letter threatening to lein his vehicle if he doesn't pay/pick up the vehicle by XX/XX date (as a scare tactic).
 
I did not have him sign anything because as you know these guys won't ever sign anything. I'm pretty sure I will be firing him as a client the minute I get the cash in my hand for this one. The only reason I agreed to do it in the first place was because I needed filler work during a slow month. I'm not even worried about getting paid for the storage fees if he wants to get all shiesty with that, I just want this thing out of here.



I'm putting up a sign in the shop today about the storage fees where everyone can see it. I just want to put it up so people know this isn't free storage. I don't mind keeping people's cars here for a couple days, as long as they are fair back to me, but I've just had it with this guy.
 
Yeah, sometimes, it's just not worth the hassle. He'll just move on to the next shop looking for a new revenue stream.



It's always a smart idea to have a sign up about this and your posted hourly labor rate. Especially if you do insurance work.
 
Considering this isn't a valued customer and also considering the position he is putting you in, I would tell him he can either:

  1. FAX you signed paperwork stating he agrees to the storage fee
  2. Pick up the vehicle today
  3. Pick up the vehicle at his convenience but after today it will be sitting outside



Sidenote: doing work without having a signed work order is not something I have ever done and sounds like a sure fire way to get into a comprimising situation
 
Since you are going to fire him as a customer anyway, I would add the charges. Accept payment for the job done minus the storage fee, but let him know those charges must be paid before any additional work will be performed for him. Or deliver the vehicle and charge a delivery fee with the same terms. When he needs work done and comes to you later you can laugh in his face as you remind him of the outstanding balance.
 
David Fermani said:
1st off Wholesalers suck balz and they are the real scum of the dealer industry IMHO. They are known to abuse detail shops on not just price, but storage of their cars. I've dealt with quite a few in my day and they are all the same.



2nd -

Did he sign a repair order stating that he'll be charged a storage fee?

Do you have a sign posted in plain view about your storage rates?



If not, you'll have a slim chance of *legally* recovering any storage fees. You need to send him acertified letter threatening to lein his vehicle if he doesn't pay/pick up the vehicle by XX/XX date (as a scare tactic).
Click to expand...



Once again, in the word of Dave Hester---YUUPPP!

Got to have it on the work order, signed and shop signage or one might as well do that urinating into a strong wind thing.

Grumpy
 
For Wholesale accounts, since it is tough to get a work order on each vehicle try doing this.

When you make a deal with a wholesaler or pop lot operator, have a blanket work order, showing normal price that is agreed to.

Additionally, have a statement on the blanket work order than any additional services required above the normal agreed to work, you will notifiy them before starting such work.

If this notification is done by phone, inform them right up front tha, during the phone conversation, you a making a notation of their approval, via phone conversation, the time and date will be written on the work order and you will then send them a copy of this addition to the work order.

Of course, also have the storage fee schedule on all work orders as well.

Scares the heck out of the shyster types.

Grumpy
 
Man, I remember wholesalers. So cheezy and simply untrustable. My dealership's owner would actually take them to the bank with him to cash their checks for used cars.



I know it's work but be careful. They can vanish very fast leaving you unpaid.
 
ExplicitDetails said:
I did not have him sign anything because as you know these guys won't ever sign anything. I'm pretty sure I will be firing him as a client the minute I get the cash in my hand for this one. The only reason I agreed to do it in the first place was because I needed filler work during a slow month. I'm not even worried about getting paid for the storage fees if he wants to get all shiesty with that, I just want this thing out of here.



I'm putting up a sign in the shop today about the storage fees where everyone can see it. I just want to put it up so people know this isn't free storage. I don't mind keeping people's cars here for a couple days, as long as they are fair back to me, but I've just had it with this guy.
Click to expand...



Had an auction I used to deal with like that. I think it took 2 weeks before I "fired" them as a customer. Some business just isn't worth having
 
Justin Murphy said:
Man, I remember wholesalers. So cheezy and simply untrustable. My dealership's owner would actually take them to the bank with him to cash their checks for used cars.



I know it's work but be careful. They can vanish very fast leaving you unpaid.
Click to expand...



Had it happen several times around here where a wholesaler working for a dealership bankrupted the entire store. One guy in my city had a big used car lot and had a guy take him for what I heard was close to a million dollars. Lost his lot and had to start over in his 60's. Pretty crappy deal
 
ShineShop said:
Some business just isn't worth having
Click to expand...



Yep, that's the bottom line, short and sweet. There are going to be able you simply don't want to do biz with. And that's OK.
 
Ron Ketcham said:
For Wholesale accounts, since it is tough to get a work order on each vehicle try doing this.

When you make a deal with a wholesaler or pop lot operator, have a blanket work order, showing normal price that is agreed to.

Additionally, have a statement on the blanket work order than any additional services required above the normal agreed to work, you will notifiy them before starting such work.

If this notification is done by phone, inform them right up front tha, during the phone conversation, you a making a notation of their approval, via phone conversation, the time and date will be written on the work order and you will then send them a copy of this addition to the work order.

Of course, also have the storage fee schedule on all work orders as well.

Scares the heck out of the shyster types.

Grumpy
Click to expand...



Or even better yet, tell them you're recording the phone conversation (and actually do record it).





Yeah, there's an app for that. ;)
 
You must log in or register to reply here.
Back
Top