Labor Rates

[Gary A]

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.

[Joe Marconi]

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[Gary A]

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.

[Gary A]

I was just wondering how many use the odd number method. I don't need it to avoid conflict with the customer. I try to never talk about the rate and if asked I say it depends on the job.

[xrac]

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[CARMandP]

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.

[xrac]

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[CARMandP]

I am just north of Nashville within a few miles of I65.

[GobblesAuto]

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

[xrac]

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[CARMandP]

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.

[GobblesAuto]

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