Search the Community
Showing results for tags 'labor charges'.
For the first time in a VERY LONG time, I see a lot of positive news with regard to labor rates. More and more shop owners and managers are crunching their numbers and increasing their labor rates to better ensure their companies achieves a profit and also to be able to pay their employees what they deserve. Profit is needed in order to build for the future and to be able to attract quality people. I really think that this is perhaps the best time in our recent history to revisit your labor rates and bottom line and adjust your rates accordingly. Have you adjusted your labor rates recently, or plan on it?
Some repair operations have finality to them. By that, I am referring to jobs that do not require additional labor after the job is complete. For example; installing a tail light lens, set of wipers, an air filter or cabin filter. Once these jobs are done, they are done. There are other labor operations, such as brake work and wheel alignments, that even though a road test is required after completion, there is enough gross profit built into these jobs, that we do not need to worry about the total labor charges. Now, let’s take an O2 sensor, catalytic converter or other similar jobs. Theses jobs are not over once the part is installed. The tech needs to retest the system and the component, verify the repair and road test the vehicle. In addition, more time is needed to sell that type of repair. Where I am going with this? Understand that you need additional labor charges for retesting, verifying the repair and road testing. The labor time to replace an oxygen sensor is only part of the repair. You also need to account for the additional time needed to complete the operation: retesting, verifying and road testing. Not taking this into account could hurt labor production, which will affect your bottom line. Oh yes, I am hoping that everyone is getting paid for testing too.