Garage Prices - By the Hour or By the Book Rate?
#1
Burning Brakes
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Anyone ever wonder how garages sometimes bill for jobs based on the time rating in a shop manual for a specific job, regardless of how long it actually takes them to complete the job?
For instance, oil change... 1h labour...? Even the least mechanically talented of us know that it's a bolt, a new washer, some new oil and a couple of filters... in the proper facilities, I'm quite confident I could personally do this in 15 - 20 minutes as a total amateur...an hour labour at $100.00+ ??? Come on...
I suppose this by-the-book-rate can be helpful if the garage runs into snags, stripped bolt, encountering other issues in complicated cases....
For instance, oil change... 1h labour...? Even the least mechanically talented of us know that it's a bolt, a new washer, some new oil and a couple of filters... in the proper facilities, I'm quite confident I could personally do this in 15 - 20 minutes as a total amateur...an hour labour at $100.00+ ??? Come on...
I suppose this by-the-book-rate can be helpful if the garage runs into snags, stripped bolt, encountering other issues in complicated cases....
#2
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Its called flat rate and most shops do that. I get .3 for an oil change- thats 18 minutes to find the car, bring it in and do the job and put it out, as well as check the whole car over. Front brakes are .9 whether it be a new car with no rust, or an 84 cavalier where everything is rotten. But also, when there is no work, there is no pay. You only get paid for what you bill out,.no guarantees. And people wonder why there are no new people becoming mechanics!
Oh, and we have to buy $20- $30 thousand in our own tools
Oh, and we have to buy $20- $30 thousand in our own tools
#3
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It really is a fair system. On the other hand my son fried the brakes on his 07 G6 and went to the dealer and was quoted $950. He then went to an indy I've used and was quoted $ 650. He called me and asked how difficult a job it was. In the end it was $ 240 in parts and he learned a skill. Sometimes the bolt does break and if it was by the hour it would be tough explaining to a customer why that simple job ended up costing $ 900 in labour and thats before the busted knuckles.
#4
Burning Brakes
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I guess it can go both ways - I remember once a few years ago I got an oil change and two new tires on my sport bike... I was charged for 3h, since that's the flat rate inclusive of both jobs.
The bike was only with them for 2h total, including me checking in....
The bike was only with them for 2h total, including me checking in....
#5
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Yep I've taken my DD to the dealer for multiple repairs on the same visit totaling 10hrs work by the book.
Dropped it off around 10 in the morning and got a call around 2 in the afternoon letting me know it was ready.
When I questioned my advisor how it only took 5 hrs to complete a 10 job she said that the book rate for each job allocates time to find the car on the lot, pull into the garage, put it on the lift, do the service and return the car to the lot. If a tech is doing three jobs on the same vehicle there is no reduction on the overall bill to account for the vehicle already being on the lift or if the tech is faster than the book time.
I've also heard of dealers increasing their book time so they can post lower hr rates.
Dropped it off around 10 in the morning and got a call around 2 in the afternoon letting me know it was ready.
When I questioned my advisor how it only took 5 hrs to complete a 10 job she said that the book rate for each job allocates time to find the car on the lot, pull into the garage, put it on the lift, do the service and return the car to the lot. If a tech is doing three jobs on the same vehicle there is no reduction on the overall bill to account for the vehicle already being on the lift or if the tech is faster than the book time.
I've also heard of dealers increasing their book time so they can post lower hr rates.
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One thing that I think people will see in the automotive trade is a lowering of prices, epsecially in the aftermarket shops. As a tech, I feel that the trade has gone to hell. Cars are built better, they have way better warranties (5 years is average now), and when it comes time for the owner to spend big bucks on a bunch of repairs, many people trade that vehicle in on a new one. Most shops around here are approx $90-100 an hour plus taxes, and the tech only sees a very small percentage of that.
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#8
Burning Brakes
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The local Porsche dealer pays his guys hourly. They explained that this ensures that there are no corner cutting and the care and attention is taken with each vehicle. Being a Service Manager I can appreciate this but it does limit a technicians appetite for productivity.
gtihop, as much as I understand your plight, I have seen many a tech still make 6 figure salaries and the customers love them. I think that the industry has moved from repair to maintenance and computer diagnostics. Balljoints and tie rods still wear out and there will always be the people who would rather not have new car payments. Then again, we live in different areas and I can tell you that Vancouver was a much different mentality than Ottawa or Toronto when it came to auto repair.
Overall, the flat rate system is fair for everybody. Good technicians that can complete jobs quickly, efficently, and properly (they don't get paid for come backs on their work) should and will make more than a slow or sloppy mechanic. No different than any industry, the talented and skilled ones should be compensated appropriately.
My two cents.
gtihop, as much as I understand your plight, I have seen many a tech still make 6 figure salaries and the customers love them. I think that the industry has moved from repair to maintenance and computer diagnostics. Balljoints and tie rods still wear out and there will always be the people who would rather not have new car payments. Then again, we live in different areas and I can tell you that Vancouver was a much different mentality than Ottawa or Toronto when it came to auto repair.
Overall, the flat rate system is fair for everybody. Good technicians that can complete jobs quickly, efficently, and properly (they don't get paid for come backs on their work) should and will make more than a slow or sloppy mechanic. No different than any industry, the talented and skilled ones should be compensated appropriately.
My two cents.
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