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MOT Fee Negotiations  Rate Topic 
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 Posted: Mon Mar 17th, 2014 11:34 pm
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billyloadsamud
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Mana: 
Doesn't always work this discounting fees, we charge full fee, I did 7 tests today and an abort(water leak), so took £383.95, a few bulbs/wipers also, one smallwelding job, and some pads/discs and others coming back, so generated approx £1000+ today, the customers want GOOD SERVICE, reliability, and do not look for discounts.
Most fails have the work done. 2 other test centres locally I speak to charge £27.50, they do 10/11 tests a day so(wear and tear on equipment is 40% higher) generate £275 for 4 more tests, get very few staying on site for repair, so generate little more £££s.

I know what I prefer, and I average 5 tests a day for the three days I test, and 4/5 from the other tester.

Quality and service DO win out in the end.

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 Posted: Mon Mar 17th, 2014 04:13 pm
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Stealth
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Mana: 
Catch 22 in my opinion.

There's no 'fixed fee' on the horizon but how can the government justify an increase when so many sites are discounting the current fee and doing free retests.

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 Posted: Sun Mar 16th, 2014 10:27 pm
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DB9
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Mana: 
Not very often but when I have talked about this subject with DVSA in the past when they were called VOSA,they advised that if the fee was fixed TESCO would jump on the band wagon and apparently the only thing stopping TESCO moving into the MOT Trade is the low charge out rates and cut price/free retesting that is rife in the market place.

The problem to me seems to be that if there are ten mot stations in a local town (statistically speaking),the customer knows this and asks how much are YOUR MOT's, interestingly they are still DVSA MOT's not ours?

So the customer does a shop around, but in the mean time some MOT garages are not getting the work through the door, so the look at prices and attitudes of what goes on at other MOT garages to try and steal the customers away if you like, so competition begins, the prices drop lower and lower until an average is found in the market place, then overheads go up and the MOT scheme start wanting this test fee increase, but DVSA and Government are not daft, they have the records from your site visits, which show them that you already cut the test fee, you already giveaway the retest free, and some garages even stoop so low that to get people through the door, they say FREE MOT with a service.

There is room for an increase in revenue from what already exists in my understanding, if the test is charged out at £40 then there is a potential to increase it towards the current test fee of £54.85, that's an increase of up to £14.85, then there is the retest fee up to £27.45, these revenue losses in business are a lot, and I can't see the Government ever setting a new fee level when they can see from the site visits that the scheme don't need the increased revenue based on your price charges you provide to DVSA.

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 Posted: Sat Oct 26th, 2013 12:56 am
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castrolrob
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Mana: 
while there aint many stations that just do tests and nothing else they do exist,mainly flow lanes and the like but they are out there.freezing the price is probably gonna hurt em,cutting it could kill em.

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 Posted: Fri Oct 25th, 2013 05:52 pm
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martins
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Mana: 
I believe it is more likely that any fixed fee (and it seems to be a long way from happening, if ever at all) would be at a significantly lower level.

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 Posted: Fri Oct 25th, 2013 05:42 pm
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Favell
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Mana: 
If the fee became a fixed fee, with no discounting allowed that would effectively give us all a rise in the fee without the government putting up prices.

But then the 'chains' would give a free service with a MOT.

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 Posted: Fri Oct 25th, 2013 04:39 am
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martins
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Mana: 
If you mean Halfords, I understand the person you are referring to (Bill Duffy?) is no longer with them. In any case it's not really the point. In a market where discounting is rife, it would be foolish not to. In fact it could be argued that a company in a dominant market position could and should out-discount smaller rivals in order to put them out of business and having done that restore full price.

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 Posted: Thu Oct 24th, 2013 04:45 pm
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baz657
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Mana: 
Isn't it true though that some members of the trade bodies that have been negotiating for a fee increase are top executives at the companies that are offering and heavily advertising MOT test discounts?

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 Posted: Thu Oct 24th, 2013 12:36 pm
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martins
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Mana: 
The real slap in the face is the way that the announcement was made out of the blue after suddenly withdrawing from well developed negotiations with the MOT Trade Forum. It seems an opportunity was seen to lump an MOT fee freeze in with a clampdown on fraudulent whiplash claims to give an overall impression of acting in the motorist's interest. The MOT is an easy target.

As you say, the fact that discounting is so widespread inevitably makes the DfT assume that there's plenty of scope to cut in that direction.

So all the hard work the trade bodies go to to to negotiate a proper fee is undermined by widespread discounting.

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 Posted: Thu Oct 24th, 2013 02:40 am
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castrolrob
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Mana: 
yeah heard that on the news this morning,stop me if im wrong but hasnt it already been frozen for a few years now?dont most garages already discount tests to some extent?dont most garages already offer free retest or similar which effectively means some punters are already getting their test at half price?if the answer to all the above is yes then said minister is already pissing up a rope before he started.why not get him to suggest vosa do their tests at the sort of rates that us stitch up merchants are obviously charging.what do you reckon your hopes?you got bob hope and no hope,my names bob,guess that leaves you with no hope....

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 Posted: Wed Oct 23rd, 2013 01:04 am
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martins
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Mana: 
In the interests of "saving the motorist money" Roads Minister Robert Goodwill has announced that there will be no MOT Fee increase until 2015.

A very disappointing announcement, in view of the ever increasing list of items to be inspected emanating from the EU and VOSA. More here:

http://www.motester.co.uk/mot-news/mot-news/mot-fee-frozen-until-2015

MOT Testing Magazine Editor Jim Punter will be expanding on this in the November edition of MOT Testing Magazine.

Last edited on Thu Oct 24th, 2013 12:26 pm by martins

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