Quantcast
Jump to content

As a New BannerBuzz.com Customer You Get 20% Off Your First Order! Use Code: FIRSTORDER for 20% Off Custom Banners, Decals, Marketing Materials, and Any Custom Print Needs! Offer Does Not End


As a New BannerBuzz.com Customer You Get 20% Off Your First Order! Use Code: FIRSTORDER for 20% Off Custom Banners, Decals, Marketing Materials, and Any Custom Print Needs! Offer Does Not End


As a New BannerBuzz.com Customer You Get 20% Off Your First Order! Use Code: FIRSTORDER for 20% Off Custom Banners, Decals, Marketing Materials, and Any Custom Print Needs! Offer Does Not End

Labor Rates


Recommended Posts

Just wanted some opinions on labor rates. The management teachers always say to charge an uneven amount like 82.74 so it is harder for the customer to figure out. How many use this method and is it a good idea? Dealerships do not do this and they have no problem making lots of money.

Link to comment
Share on other sites



Just wanted some opinions on labor rates. The management teachers always say to charge an uneven amount like 82.74 so it is harder for the customer to figure out. How many use this method and is it a good idea? Dealerships do not do this and they have no problem making lots of money.

 

Many don't know this, but in New York, you do not have to post a labor rate. So, I don’t post it. All I am required to do is to let the public know how I calculate my labor prices. My sign in my customer waiting area states:

 

“Labor rate may be computed by either hourly rate, which is multiplied by clock hours and / or flat rate manual.

 

Most labor costs are charged by method of menu pricing only. E.g.: oil service, wheel alignment, wheel balance, tire mounting, or diagnostic analysis.

 

You, as the consumer, have the right to additional information and explanation on labor costs upon request.”

 

I don’t know what the laws are in your area, but my opinion is to get away from talking about time. Many of the jobs we do are menu prices and don’t fall into an hourly labor rate. For example: a brake job that takes you 30 minutes you may have a menu price for 1 hour.

To answer your question, having a number like $82.74 is harder to calculate, but do you really need that to avoid confrontation by the customer? There must be a better way.

Link to comment
Share on other sites

Many don't know this, but in New York, you do not have to post a labor rate. So, I don’t post it. All I am required to do is to let the public know how I calculate my labor prices. My sign in my customer waiting area states:

 

“Labor rate may be computed by either hourly rate, which is multiplied by clock hours and / or flat rate manual.

 

Most labor costs are charged by method of menu pricing only. E.g.: oil service, wheel alignment, wheel balance, tire mounting, or diagnostic analysis.

 

You, as the consumer, have the right to additional information and explanation on labor costs upon request.”

 

I don’t know what the laws are in your area, but my opinion is to get away from talking about time. Many of the jobs we do are menu prices and don’t fall into an hourly labor rate. For example: a brake job that takes you 30 minutes you may have a menu price for 1 hour.

To answer your question, having a number like $82.74 is harder to calculate, but do you really need that to avoid confrontation by the customer? There must be a better way.

Link to comment
Share on other sites

I use an odd number both for my labor rate ($59.97) and my shop supplies amount (8.01%). The example that was used for me was what Walmart does. They won't use even numbers and they also only use 3, 7, 9 price number endings if I can remember properly.

Link to comment
Share on other sites

I don't know that it really matters a lot. Very rarely do I get asked what our labor rate is. Your labor rate needs to be what you need to be profitable and in line with your market. Our is currently $78. CARMandP where are you at in Tennessee. My daughter and son-in-law live in Cleveland, TN.

 

 

Hey I am in Cleveland, TN. It is a nice town. Where do your daughter and son-in-law go for auto service?

Cleveland is still a small town, I might know them.

 

Tony Gobble

www.gobblesauto.com

Link to comment
Share on other sites

The only time I have been to Cleveland was to visit a friend at Lee University. That has been more than 10 yrs ago but that campus was very nice. I saw a program put on my the drama team that was probably one of the funniest things I have ever seen.

Link to comment
Share on other sites

My son-in-law is a minister so they don't have a lot of money. They come to dear old dad for almost everything that will wait until they get to Indiana but I should hook them up with you. There names are Craig and Janna Jones. Craig works for Norvel Hayes Ministries. Craig and Janna even have their own web site. They are both tremedous singers and musicians. They met at Lee University in Voices of Lee Craig Jones Ministries Worship

 

Hey I would love to meet them. I understand wanting Dad to take care of things. If I can ever help them I would be glad to. I will make sure they are well taken care of. Lee University is a great school and a lot of talented folks come from there. Have a great week.

 

Tony Gobble

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
  • Similar Topics

    • By bantar

      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.

    • By Joe Marconi
      As a former auto shop owner, one of the things that kept me up at night was not knowing enough about all the labor laws and human resource regulations.  
      How do you keep up with all the changes to the labor laws and human resource regulations in your state? 
    • By carmcapriotto
      We are wrapping up our 3 part series with Bob Cooper and the Q&A discussion with a customer panel at the 2022 Elite Invitational. Chris Monroe joins us as we discuss websites, google ads and cause marketing. Don’t forget to download your complimentary Customer Care Guide and an Owners Job Description Guide by going to eliteworldwide.com/ARN or find the link in the show notes.  Bob Cooper, Founder/President Elite Worldwide. Complimentary Elite Customer Care Guide Template HERE. Listen to Bob’s other episodes HERE Chris Monroe, Monroe Tire & Service, Shelby, NC. Business Development Coach,  Elite Worldwide, Elite Top Shop 360. Listen to Chris' other episodes HERE   Key Talking Points
      Watch Full Episode on YouTube HERE Websites - What they look for on websites: years in business, pictures of shop/employees (nonstock photos), connection (dogs, kids etc), phone number and email address, reviews, attraction to family business What didn't they say? Price, list of services Google Ads - Their use of the paid Google ads found at the top of search results- they do not consider them as recommendations. Consumers want to do their own research Cause Marketing - powerful but not a top priority to sway decisions, encourage referrals, and find a cause you believe in to be involved with. Complimentary Elite Customer Care Guide Template HERE. Link to Part 1 Link to Part 2
      Connect with the Podcast: Aftermarket Radio Network Subscribe on YouTube Visit us on the Web Follow on Facebook Become an Insider Buy me a coffee Important Books Check out today's partner: Learn more about NAPA AutoCare and the benefits of being part of the NAPA family by visiting www.NAPAAutoCare.com
         
      Click to go to the Podcast on Remarkable Results Radio
    • By bantar

      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.

    • Advertise your services or products to passers-by attracting them towards your business
    • By carmcapriotto
      Guest Host and Shop Tour with Todd Cole, TC Auto Service, Corpus Christi, TX. Four years ago Todd left his medical sales job and became the new owner of TC Auto Service.
      Todd Cole, TC Auto Service, Corpus Christi, TX.
      Key Talking Points
      Was in medical device sales but looking to make a change. His great grandfather, grandfather, and father were all in the automotive business Was a customer of the business and bought the business from the owner (who was 80 years old) Senior tech has been with the business for over 30 years- loves to teach and help others, maintains quality. He is a mentor for apprentices.  ‘Running out of concrete' as they started growing- purchased satellite location  7 lifts total Look at productivity by technician weekly- scoreboard with names listed, fun competition Drive through lanes with vehicles- 3 lanes  
      Connect with the Podcast:
      Aftermarket Radio Network
       
      Subscribe on YouTube
      Visit us on the Web
      Follow on Facebook
      Become an Insider
      Buy me a coffee
      Important Books
      Check out today's partner:
      Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. Take the Dorman Virtual Tour at www.DormanProducts.com/Tour
       

      Click to go to the Podcast on Remarkable Results Radio


  • Our Sponsors










×
×
  • Create New...