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Posted

Just wanting to know how you all are handling labor billing for the smaller things ie Bulbs, Air Filters, Wiper Blades, Cabin Air etc. We tend to charge only a few bucks ($10) for cabin air labor (we make about 70% profit on the part) and no labor for air filters because these are typically done with some other services and sold as an upsale. Wiper Blades are labor free and bulbs are typically $10 installed (not headlights). The thing here is that when you look these things up in the labor guide it seems that they are way overstated. We have seen several cabin airs which took 5 minutes to install but called for .5-.8 hrs which is great profit but seems like highway robbery and hard to justify to the customer. Brake bulbs typically call for .4hrs etc. So just wanted to see how you all are charging for this. I think we are leaving a lot on the table here personally but not sure what the market will pay.

Posted

Bulbs and wipers are good to comp on labor but make sure it's stated in the invoice and mention to the customer. Get some value out of it if nothing else, tell the customer you comp these items for great customers like themselves.

Posted

We got into the habit of selling a mileage service when doing cabin air filters. If the tech notices low flow or foul air from the vent I'll suggest a 30k mile service. That way we get paid 2 or 3 hours to change the filters and wipers and the customer gets on a maintenance schedule. Most of the mileage maintenance is easy but important. Normally if the cabin filter is clogged the whole car is overdue for the scheduled maintenance service.

 

As for small repairs that take less than 10 minutes I normally dont charge labor, the word of mouth advertising is worth it. It's a fine line I guess between giving away time and providing outstanding customer service.

Posted

I charge labor on just about everything except wiper blades. $10 for air and cabin filters, $15 for bulbs, etc. Some are super easy to do, others suck. It evens out. Also, my employees incentives are based on hours sold, so I would be cheating them if there wasn't any billed hours.

 

... I pay 0.2 for filters, 0.3 for bulbs, 0.5 for tire rotations. Obviously I adjust the labor rate for these specific jobs. This is where you want to start watching effective labor rate and such.

Posted (edited)

We do not typically charge any labor for air filter or cabin filter. We do make exceptions for some cabin filters that are more difficult to install. For marker/parking/tag light bulbs we have been charging $5 for labor but after reading this post I think I might increase it. What do you all charge for labor for headlights? Do you go by estimated labor or do you have a general price for most vehicles?

Edited by 5 Star Auto Spa
Posted

We try to do a show and tell. Many vehicles come in with damaged air filter boxes/retainers, tree debris in the cowl and a clogged cabin filter. We vacuum out the debris from the air filter box before we install the new filter and ditto with the cowl.

most air filters .15 labor

most cabin filters .5 labor

most easy bulbs .15 labor

wiper blades n/c labor but we only sell blade assemblies that are of good quality.

 

If the car is due for mileage based service we try to bump it to a proper service.

 

we work off a $139.50 shop rate.

Posted

We charge $10 for bulbs that are easily accessible, wipers and air filters are free. We have been charging book time for cabin filters. Its hard to keep Techs motivated to sell parts they are not getting paid to install but we have been doing it for free for so long now its expected by our customers. Techs are being pulled away from working on paid customer vehicles too install wiper blades outside for free.

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  • Have you checked out Joe's Latest Blog?

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      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
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      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
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      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
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