Getting Up the Curve By David C. Stieler It was almost 30 years ago when the B.S. Curve was first explained to me. Although the concept was presented as an analysis of a specific situation, I have since discovered ways to use this handy tool for illustrating many of life’s little idiosyncrasies. From a shop owner’s point of view, B.S. can typically be expressed in terms of over-the-counter price resistance, cus- tomer complaints, warranty work, or just plain baby-sitting the sale. Generally speaking, most would agree that when a customer starts handing you a fresh load of B.S., the common denominator is usu- ally money, because the more someone pays for something the more they expect to get in return. The less the guy down the street charges, the lower your prices should be, right? What if I told you the B.S. in your shop could actually be reduced by raising your prices? Grab your coffee, a pencil, and a clean sheet of paper and I’ll show you how to map your future: 1. Beginning in the lower left corner on your page, draw an “L” shaped graph (one vertical line and one horizontal line). 2. Label the vertical line “B.S.” and the horizontal line “Dollars.” 3. Place equally spaced marks on both lines and assign values as follows: “B.S.” scale = Least to Most; “Dollars” scale = $10 to $200 (in $10 increments). Here’s the exercise: Let’s say you are selling a remanufactured (and I use that term loosely) alternator over the counter for $10. Try to imagine the relatively low amount of B.S. you might expect to receive as it pertains to that particular sale. Now place a dot on your graph at the appropriate B.S. level directly above the $10 mark. Next, add $10 to the selling price and plot a new coordinate at the expected higher level of B.S. directly above the $20 mark. Continue this scenario at each of the $10 increments on the graph until you reach the place where your prices are high enough that the B.S. customers will have gone somewhere else. From that point on you will increasingly find your- self dealing only with customers who understand that you get what you pay for. Now connect the dots. You should have a bell shaped curve indicating low levels of B.S. at the extreme left and right ends of the “Dollars” scale! Graphing B.S. might be nothing more than a lighthearted way of looking at your rebuilding operation but I believe its application can also reveal something about where you are in regard to the market you serve. It’s a simple formula. Raising your selling price allows you to build more quality into your product, which will reduce B.S. warranty repairs. Your customer satisfaction will rise and your reputation as a reliable rebuilder will grow, reducing B.S. complaints. If you are baby-sitting the sale consider it the same as putting integrity into your prof- itability. And that’s no B.S. It’s generally true that lowering the selling price lowers customer expecta- tions. The trouble with that mentality is your cash flow suffers, your profits dwin- dle, and you only succeed in developing a customer base of shade tree, junk yard mechanics who won’t pay for a new stick of gum. In other words, cheaper is not always better. Dealing in the cheap mar- ket is just asking for more B.S. and once you have started wallowing in that pit of despair good luck trying to repair your reputation! There is a limit to how much you can charge but even in an unsettled economy there are still people willing to pay good money for good work. Trust me. Here is a rule I have lived by that never goes out of date: There comes a point in time when it becomes necessary to send your customer down the street and let him put your competition out of business. Translated: Fear not for there will always be someone willing to do the job for less—and that’s a game nobody wins. Eventually the quality-minded dis- count store customer will tire of poor per- forming products and come banging on your door to be rescued. When he does, help him make the connection between low price and low quality. You don’t want to rub his nose in it but I think it’s a good idea to point out the amount of B.S. he has endured thinking he was saving a buck down the street at Discount Dan’s. From then on, the people who walk through your door will be inclined to hand you a lot more cash and a lot less B.S. Unless, of course, you happen to be that guy who keeps getting the customers I’m turning away! David C. Stieler is owner of CARCO Auto Electric, Marlette, Mich.