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Going Hourly Pay Rate for Tech


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This is totally area dependent. I pay $8/hour base with $10/hour incentive for a tech with those credentials.

That seems a little low. Not questioning you just curious why so low.(please dont take that offensively)

I'm a 7 year tech/shop owner with 150k in tools but no certifications...i'd hate to think im just worth $8 an hour lol

In my opinion its about the quality of work, and their talents.

I'm very interested however how the 8 base and 10 incentive works. I'd like to implement a similar plan!

 

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That seems a little low. Not questioning you just curious why so low.(please dont take that offensively)

I'm a 7 year tech/shop owner with 150k in tools but no certifications...i'd hate to think im just worth $8 an hour lol

In my opinion its about the quality of work, and their talents.

I'm very interested however how the 8 base and 10 incentive works. I'd like to implement a similar plan!

 

Sent from my SCH-I605 using Tapatalk 2

Can't compare apples to rice. It's all in what the market will allow. A shop with a labor rate of $70/hour can't pay as much as a $95/hour rate. A town with an average income of 30k vs 50k can't charge the same.

 

So without any further information your comment and this whole topic is as useless as a football bat :).

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Can't compare apples to rice. It's all in what the market will allow. A shop with a labor rate of $70/hour can't pay as much as a $95/hour rate. A town with an average income of 30k vs 50k can't charge the same.

 

So without any further information your comment and this whole topic is as useless as a football bat :).

Hey! I've got a football bat! Gave snap on 500.00 for it lol.

We're stuck in the dark age of shops around here. Takes 50k a year to live here but 4 out of 10 shops is at 40 an hour with no parts markup.

 

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PHYNY, I would be interested in how your hourly/incentive pay plan works as well. Here at our shop, our hourly labor rate is $80. Estimated median household income in our area is $45,032. Its sometimes difficult to identify what the pay rate should be for new techs that we hire based on their experience. I want to obviously pay the tech what their worth but also not overpay them. We currently pay an hourly rate plus a commission. We do not pay flat rate currently. All responses greatly appreciated!

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Hey! I've got a football bat! Gave snap on 500.00 for it lol.

We're stuck in the dark age of shops around here. Takes 50k a year to live here but 4 out of 10 shops is at 40 an hour with no parts markup.

 

Hahahaha, that's hilarious.

 

This topic is going to get very interesting. I can already see the difference between urban and rural, and I can only speak for urban. The average labor rate in our metro is $95/hr. Techs typically earn the following:

  • No ASE's, tire tech: $12/hr
  • No ASE's, diag tech: $16/hr
  • No ASE's, dealer tech: $22/hr
  • All ASE's, master tech, independent: $28 - $40/hr

Our area has a median household income around $80k/year. Hope this helps a bit.

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It's amazing how different all of our areas are.

 

So here's how we work things, I'll give you an example of one of our techs.

 

Guaranteed base salary of $8/hour and $10/hour of every billed hour. On large times jobs IE engines or transmissions he gets a $50 bonus per every $500 in labor. I also will challenge the techs often by way of betting them. Example, a job calls for 4.5 hours and I'll Bet the tech a new battery powered snap-on wratchet that he can't do it in 4 hours. I also don't use Mitchell time, I normally add 40% to the suggested time. This does 2 things;

 

Makes the workplace fun yet challenging and gives the techs a great sense of pride.

 

Gets them the newest and best tools so they can do better and more efficient work. And I get to write it off :).

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It's amazing how different all of our areas are. So here's how we work things, I'll give you an example of one of our techs. Guaranteed base salary of $8/hour and $10/hour of every billed hour. On large times jobs IE engines or transmissions he gets a $50 bonus per every $500 in labor. I also will challenge the techs often by way of betting them. Example, a job calls for 4.5 hours and I'll Bet the tech a new battery powered snap-on wratchet that he can't do it in 4 hours. I also don't use Mitchell time, I normally add 40% to the suggested time. This does 2 things;Makes the workplace fun yet challenging and gives the techs a great sense of pride. Gets them the newest and best tools so they can do better and more efficient work. And I get to write it off :).

This gives me clarity that ive never had on this subject! I really appreciate the input from veteran shop owners on here! I read this and a light bulb thats never lit up before lit up!

 

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I think our rate is as follows:

 

  • No ASE Tire Tech - $9
  • No ASE Diag Tech - $14
  • No ASE Dealer Tech - $18
  • All ASE Master Tech, Independent - $20

Just to clarify, this is an hourly rate and NOT flat rate hours. We also offer an incentive program based on recommendations that are made and sold to customers by the technicians. The recommendation is made by the tech but sold by the service writer. If sold, the tech receives 3% of parts and labor off of the recommendation.

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      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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