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According to Zip Recruiter, tech pay on average is about $41,000 per year.  Is this an issue?   I know many of you pay more than average, but do you think that we need to increase tech pay in order to attract more people to the auto repair industry.   One other thing to consider, the shop and shop owner needs to be profitable and make the money first in order to pay anyone a decent wage.

Your thoughts?  

  • Like 2
Posted

Yes I do believe we need to make this industry more financially attractive. Many are lured in by interest in how cars work and fixing them as a hobby but soon find out how steep the earnings curve is when it comes to buying tools and going to school. Nowadays a tech nerd can buy a small toolkit  online and become a computer repair technician with minimal investment in tools and education. These jobs have far better starting pay and you don’t get your hands dirty. 

  • Like 3
Posted

You have to be as smart as an electrical engineer, with the knowledge base of a doctor, working in conditions similar to a garbage man, for the same salary as a garbage man.

  • Like 3
  • 7 months later...
Posted

Tech pay is determined by the profits generated by the repair shop.  Too many repair shops struggle and want to remain competitive, but don't realize that all too often we compare our prices to the masses that undercharge their services and repairs.  I have seen this time and time again for decades. It has changed somewhat since I started in 1974, but we need to go further.

Sit down and do the math.  Determine all your normal costs of doing business: Your rent or mortgage, insurance, workers comp, utilities, tools, equipment, computer programs, training, advertising and all other ordinary expenses. Then add up all those monthly costs. These expenses occur without even making a sale. AND, you haven’t even factored in payroll yet, or payroll costs.

Once you have this number, you will then have a better understanding of what you need to charge in order to pay all your expenses and to generate a profit….yes…a profit. 

 

  • Like 4
Posted

I believe tech pay will be going up rapidly, but so will shop labor rates. With the low unemployment currently, wages are going up in every industry. With the average tech pay of $41,000, if a tech was at work 40 hours a week all year he's only making $19.71 an hour.  While that's a decent wage for many, most techs have to invest in a lot of costly tools.  I was in a McDonalds a few months ago and saw signs all over the store advertising for employees with starting wage of $14 an hour.  Of course my breakfast there gave me sticker shock also.  The same will have to happen to the automotive repair industry or there will be no more techs.  I see shops all around going out of business. It's not because of it being a profitable business. It's because the shop labor rates throughout the area are to low to be able to pay techs well enough to attract them and keep them while most customers gauge the cost of one shop vs. another entirely on the shops labor rate.  Hands On says we have to have the same knowledge base of a doctor. Considering they only work on one make and two models, I'd say we may have to have a larger knowledge base in our profession. If we operated as doctors, we would also have a specialist for heater blower motors, and a different specialist for hood release cables and yet another specialist for brakes.  The same tech that replaces the spark plugs wouldn't even consider working on the exhaust system.  If we are going to keep techs coming to our industry, it will not be long before it will have to be an 80K or better per year profession.  That will be achieved as shops either raise the average shop labor rate significantly or go out of business placing more demand on the shops that survive.

  • Like 3
  • 2 weeks later...
Posted

I've always felt like it's an absolute travesty what I pay my techs compared to what they're worth, the unfortunate thing is as an industry we come nowhere close to getting paid what we're worth.  When I look at (and I mean ZERO disrepect here) what local Plumbers, Electricians and HVAC guys are making with a fraction of the tools an Auto tech has, I ask myself 'if I were to start over again, which trade would I pick...?'  and I figure most young soon to be tradesmen ask themselves the same question.  I've always felt the lack of licensing in our trade has been part of the issue as to why the trade as a whole is underpaid. Just my $.02

  • Like 2
Posted

I agree with everything said above.  Tech wages are too low and will need to rise, but in order to do this,  labor rates and parts margins will need to rise also.  The money needs to come from some where and the cost of living isn't shrinking, so this is the wakeup call that most shops are faced with. 

This has to do with the criticism / wake up call that I received recently.   I was told that my shop wasn't clean and orderly, which could have cost me an opportunity that I was in pursuit of.  Attracting techs and customers alike begins with your shop's appearance.   Clean and safe work place sets your shop ( in some cases) apart from the competition, which in turn allows you to raise rates and hopefully be more profitable.  This is only a piece of the puzzle and stepping back and analyzing your operation should be done regularly to optimize profitability. 

Attracting quality techs is and will always be an ongoing challenge, so I'll be watching out for any advice that I can get.

  • Like 2
Posted
14 hours ago, JOEPROPER said:

I agree with everything said above.  Tech wages are too low and will need to rise, but in order to do this,  labor rates and parts margins will need to rise also.  The money needs to come from some where and the cost of living isn't shrinking, so this is the wakeup call that most shops are faced with. 

This has to do with the criticism / wake up call that I received recently.   I was told that my shop wasn't clean and orderly, which could have cost me an opportunity that I was in pursuit of.  Attracting techs and customers alike begins with your shop's appearance.   Clean and safe work place sets your shop ( in some cases) apart from the competition, which in turn allows you to raise rates and hopefully be more profitable.  This is only a piece of the puzzle and stepping back and analyzing your operation should be done regularly to optimize profitability. 

Attracting quality techs is and will always be an ongoing challenge, so I'll be watching out for any advice that I can get.

Well said Joe! And my hat's off to you for being professional and recognizing that we need do what we can as an industry to attract and retain quality people. And also attracting and retaining customers. Thanks for sharing and best of luck to you! 

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  • Have you checked out Joe's Latest Blog?

         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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