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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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  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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