Quantcast
Jump to content


Shop Labor Rate

spencersauto
 Share

Recommended Posts

  • Replies 89
  • Created
  • Last Reply

Top Posters In This Topic

Popular Days

Top Posters In This Topic

Popular Days

Popular Posts

gandgautorepair
gandgautorepair

Good point. One of the things we did to build car count was go to cheap oil changes, which dropped our ARO. We've worked hard to get ARO and GP up to where it should be, and we're finally having a ver

Joe Marconi
Joe Marconi

Premium Member Content 

This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

ohlmannr
ohlmannr

My experience in the past two years I went from $85 - $95 then $95 - $105 my car count has increased.  Industry standard is around 2 hrs per RO I think. So if you raise your rate $10 per hr the increa

bantar Community Regular

bantar

Posted
Posted

Northern suburb of Dallas....  We bumped our labor rate to $149.99 (from $130) at the beginning of August.    It's been 4 months.  No one noticed, nor complained.   We're staying busy and have more work now than before.

  • Like 1
Link to comment
Share on other sites
  • 4 weeks later...
Hands On Community Regular

Hands On

Posted
Posted
On 12/12/2021 at 3:01 PM, JerryK said:

We are in the Dallas area... Our labor rate is currently $175 for domestic, $195 for European and $245 for pre-1971. We expect to raise rates again in January 2022.

I need to make this a regular thing for myself. We do a "pre 1971" about 6 to 12 times a year. I have a 1960 Nash metropolitan in my shop, I set at I think at 229 an hour. Customer balked at first, but Noone else wants to work on it. He begrudgingly approved the work, then told me his wife is making him sell it now.

The 1966 mustang that was in at the same time had no issue at all with his bill, he was prepared financially for his hobby.

I just bumped to 144.95 at the end of the year. I think I will go for the $149.95 on Monday. It 8s way easier to find customers then employees. If I can get up to $175 an hour I will put out an add offering $55 an hour for technicians. Maybe I will find one.

Link to comment
Share on other sites
  • 2 weeks later...
Guest

Guest

Posted
Posted

Do any of you smart successful people look at the percentage of gross sales that your cost for parts is? If so, what's the goal and do you raise labor or parts prices to the customer to achieve the goal? 

Link to comment
Share on other sites
  • 2 weeks later...
  • 2 weeks later...
Guest

Guest

Posted
Posted
6 hours ago, Joe Marconi said:

Agree Frank, and to add to that, for the most part too many people in our industry have been underpaid for too long, and that includes the shop owners too. 

I also agree that being the cheapest guy in town is a  sure way to go out of business. We are not mass-marketers, we are a specialized group of professionals with a lot of associated costs of doing business. We need to charge what we are worth. 

 

I found out last week that the Honda dealer is at 198 so I raised ours another 20 to 178.  At this rate my take home pay might actually equal an Amazon driver's! Haha.  👍

Link to comment
Share on other sites
  • 1 month later...
IDAS Cleveland Newbie

IDAS Cleveland

Posted
Posted

We are based in SE Tennessee and are charging $100/hr for asian and domestic & $125/hr for European and diesels.  We shoot for 35-40% markup on parts.  We have lately had quite a few customers asking for work on 1975 and older vehicles and I have not been adjusting my prices much for this.  But like some other shop owners I think I will increase the price for those jobs as it always includes many suprises and 10x time comittment.  Thanks as always for all the great info!

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing

  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      Want to End Your Technician Shortage? Focus on Retention!
      By Joe Marconi in Joe's Blog
         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”

  • Similar Topics

    • Joe Marconi
      Are Your Using Multi Tier Labor Rates?
      By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • Joe Marconi
      What Are Your Top Ways to Attract and Retain Auto Technicians?
      By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • nptrb
      6 Financial Pitfalls That Are Affecting Your Business Profit
      By nptrb

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • Changing The Industry
      Why You Cant Raise Your Price
      By Changing The Industry
      Why You Cant Raise Your Price
    • carmcapriotto
      A Better Road to Success: Navigating Your SMS and Customer Rapport [RR 945]
      By carmcapriotto
      Thanks to our Partners, AAPEX, NAPA TRACS, and Automotive Management Network By leveraging tools like digital vehicle inspections (DVI) and customer relationship management (CRM) systems, businesses can significantly improve their operations and customer experience. These integrations allow for a more streamlined process, from diagnosing vehicle issues to maintaining consistent communication with clients. Ben Dexter, National Training Manager, NAPA TRACS Show Notes
      Ben's journey in the automotive industry (00:00:55) Ben's progression from service writer to National Training Manager and his experience in the automotive industry. Importance of shop management systems (00:02:04) The critical role of shop management systems in the automotive repair industry and the support provided by NAPA TRACS. Value of training (00:03:21) The significance of investing in training and the impact of leadership participation in training programs. Building customer rapport (00:11:22) Ben's approach to building customer rapport and the importance of effective communication and attention to customer needs. Significance of scheduling (00:13:12) The shift from reactive scheduling to a coordinated approach, addressing the issues of timely and accurate repairs through effective scheduling. The power of software integrations (00:15:37) The commitment to utilizing shop management software and the potential of integrations with other tools like DVI and CRM for business growth. Utilizing shop management systems (00:19:08) Encouraging the use of shop management systems and the availability of resources for business advancement. Role of technology in DVI (00:20:42) Discussion on the coordinated effort required for effective Digital Vehicle Inspections (DVI) and the benefits of real-time communication. Challenges in utilizing software (00:22:32) Exploring the reasons behind the underutilization of software tools and the need for effective leadership and training. Importance of testing and measuring (00:25:13) Highlighting the significance of testing and measuring business performance for improvement and growth. Communication and customer service (00:28:27) Emphasizing the importance of effective communication with customers to prevent unexpected breakdowns and enhance customer satisfaction. Impact of scheduling on service advisors (00:30:07) Discussing the influence of scheduling on service advisors' decision-making and the need for consistent customer recommendations. Rethinking business analysis (00:32:47) Encouraging a reevaluation of business statistics and reports to identify missed opportunities and improve overall business strategies. Morning Meetings and Reporting (00:33:21) Discussion on the importance of morning meetings, sales reporting by service writer, and constructive performance discussions. Maximizing Existing Resources (00:34:55) Emphasizing the significance of making the most of existing resources before seeking more car count. Linear Quantity Opportunities (00:36:32) Exploration of the linear quantity opportunities in parts matrix, addressing traditional matrix problems and opportunities for improvement. Commitment to Lifelong Learning (00:38:54) Highlighting the importance of lifelong learning for success in shop management and overall strategy. Thanks to our Partners, AAPEX, NAPA TRACS, and Automotive Management Network Set your sights on Las Vegas in 2024. Mark your calendar now … November 5th-7th, 2024. AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at http://AAPEXSHOW.COM/WEBINAR NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Get ready to grow your business with the Automotive Management Network: Find on the Web at http://AftermarketManagementNetwork.com for information that can help you move your business ahead and for the free and informative http://LaborRateTracker.com Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections            
      Click to go to the Podcast on Remarkable Results Radio


  • Similar Tagged Content

  •
    nptrb

    Spring Clean Your Finances: 5 Steps Every Business Should Take

    By nptrb, in Automotive Industry,

    1 comment 353 views
    nptrb

    Tax Season Preparation: A Comprehensive Guide

    By nptrb, in Automotive Industry,

    1 comment 487 views
    nptrb

    Understanding S-Corp Distributions and Draws | Are They Taxable?

    By nptrb, in Automotive Industry,

    0 comments 595 views

  • Our Sponsors










Main Sections

More Sections

Discussion Forums

×
×
  • Create New...