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Dealer Reducing Flat Rate Time


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I just hired a tech from a local Toyota dealership. He said he was tired of the flat rate pay program. There were weeks when he booked over 60 hours and other weeks where he barely broke 10. But, the interesting thing he told me was that the dealer has been reducing flat rate times below published times in order to compete and to raise revenue.

 

For example, a wheel alignment may have paid 1 hour, but the dealer, to compete with the market, has reduced the price and adjusted the alignment to .6 tech time.

Other reductions are tire rotations, tire mount, major services, oil changes, Timing belts, other repairs and tire balance. In addition, Toyota has severely cut back on selling fluid services and any other preventive maintenance services that are not in the owner’s manual. All these reasons combined are making it difficult for an honest tech to make a decent wage in a dealership.

 

Could this be an opportunity for the independents to acquire technicians?

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How has your experience been with hiring dealer techs? The ones who have been deaaler techs for very long haven't done too well for us?

 

From my experience, if a dealer tech has a lot of years with one car line (15 years of better), they can't make the transitiion to an independent that deals with multiple car lines. The only dealer techs that have worked out for me were the younger techs. I now have 3 former dealer techs, but when they came to me there were all in their mid 20's. They are all working out fine. The dealer techs that were hired in the past that had 15 years or more did not work out. In fact they lasted about a month.

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I'm hearing the same from my brother who is a service advisor for Mercedes. They are really cracking down on the times and what they will allow with the warranty work. In turn nobody wants the warranty work. I'm glad I dont have a new vehicle that needs warranty work.

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