Shop Labor Rates?

Question

I have a question. Some of you people think that shops charge say 30,40,50,60 dollars an hour for labor rates. Do you have any idea what the overhead is to run a decent shop and to hire master technicians to work for you? Let me tell you a secret, any shop that charges 30 bucks an hour for a labor rate is not exactly the kind of shop I'd send my wife to. The labor rate at my shop is 90.00/hour. We are VERY competative with this as most dealers are 125/hour. You get what you pay for. If you want your car to get mis-diagnosed, go to auto zone or a 50/hr shop, that is what you are going to get. A big guess as to what is the problem with your vehicle. I guess what I am saying, pay the REAL shops with REAL techs that can REALLY diagnose your problems and in the long run, you will save lots of money. How many of you know someone that needed a brain transplant? Did you call all the local hospitals and compare prices to see who's the cheapest one to perform this? I didn't think so.

Answer 1

My shop charges $97/hour and in the metro area I am in that is about average. Some stores and dealers are up over $100/hr. That's just enough to keep us in business. The only shops that are below $90/hr use uncertified "imported" labor and are in really, really crappy neighborhoods were rents and property taxes are low. At $30-40/hr my doors would be closed within a week.

A poster above mentioned flat-rate hours. Flat rate hours are a guideline, not a requirement. Some shops use them more religiously than others. What they are designed to do is allow shops to provide accurate, consistent estimates for services. They remove the guesswork. Some jobs can be done by a good mechanic in less time than the flat rate. Sometimes it takes longer too (rusty or siezed bolts or other problems can crop up and do all the time). Many routine jobs are billed at DRAMATICALLY LESS than flat-rate. Oil changes, alignments and tire rotations are some common examples. Who wants to pay $80 for a tire rotation? By flat-rate that's what shops should be charging, but they don't. And about the same amount to for an oil change.

Answer 2

I agree as I also worked as a mechanic, as well as had my own shop. Expensive where I was living was 55 p/h, the highest price in town. BUT just because the flate rate was high doesn't neccessarily mean that you get better work. In general you are correct though.

You can understand that most people "Don't" understand how the shop rate labor works, much like you or I going to a doctor for some special procedure.

We know it is expensive and that (because we also know how things like this work) the cheapest guy isn't the one you want messing with your insides.

Just like you, I would not allow my wife to take her car to the lowest bidder. I would say go to the dealer, and pay the price. Like the doctor bill, after the flat rate gets divided up the mech only gets about 30% of it if he's lucky, then pays for taxes, tool bills, etc out of it.
You should know by now that when you are accepting peoples' money for services or goods rendered, they will never be happy. You will always be ripping them off or be cheating them somehow. The ones who dont understand are the ones bitching the most. They want charity work for free.

Just let it rest, man. The ones that say thanks and come back, refer others, those are the customers you serve, its the whiners and complainers that make the job difficult. And they comeback even though they whine and complain, too.

Answer 3

Well kiddo, it seems as though you have a thing or 2 to learn. A shops labor rate does not show hoe good they are, the work they do shows how good they are. I had a shop that charges $80 an hour install my starter without a bracket it needed, and with no shims, you know what happened? The starter bouncing while riding around without that bracket stressed the bots and I broke 3 bolts before I realized they didn't know what they were doing. Every time i went back with a broken bolt, they said it was something else that caused it, funny isn't it kiddo?

I finally took my truck to a shop that's been in business for over 80 years, they charge $48 dollars and hour, they machined the block to fix the hole the other shop striped out, replaced the flex-plate the other shop messed up with the improper install, mounted the starter, fabricated a bracket, and I have never had a single problem since, starter sounds nice and solid and it will mesh up with the flex-plate perfect every time.

So, tell me, oh wise kid in high school...how exactly was it that the $80 an hour shop did better work?

Answer 4

I strongly agree. At my shop, we charge $62.50 per hour. I would charge more if I could. I am the highest shop in this area (rural), but I am the only one that has the latest diagnostic equipment, the only one that uses online information resources, etc. In fact, I get work from the local GM dealer because of the level of expertise provided here. I wish that I could charge the $90 you guys get. And most of the time you "get what you pay for." I can't believe the number of people that think the kid at AutoZone can come out with his little scan tool and do a thorough and complete (and accurate) diagnosis FOR FREE!!! Good Luck All

Answer 5

I agree with you. It is hard to find quality mechanics anywhere. People tend to believe that a cheap price is the way to go. If I went to a shop and the shop labor was even 40 dollars I would ask, "What's the catch"? I have owned my own place and first of all, there is no way I am going to do a tune up, exhaust or brake job at 40 dollars a hour, no way. It's funny, once you repaired the car and something else, not related, the owner is in your shop asking you," What did you do to my car", even if the repair(s) doesn't relate to the situation.

Answer 6

the shop i work at is right in the middle of the labor costs for the area. we have been doing business for 31 years. labor times are a guide that we follow if it takes less time we charge less time and if it takes more time we charge the time that is alotted in our estimating software.

for buddy who said that i took HIM and HIS DAD three hours to do something but one tech working alone would get paid 6 hours for. i think i made it out of kindergarden but if you split a 6 hour job amonst 2 people doesn't that take three hours to complete.

the way i see it if you crappy service find the lowest price, if you want someone to do good work make a friendship and a committment to one shop.

Answer 7

Just because you charge more does not mean that you are better. Something he forgot to mention is that shops go by "book hours". I have a repair book the one the "master techs" use and shops will charge you for the hours the book says even if it doesnt take that long. For example, in a 2001 chavy astro van the book says 6 hours to take out and replace the transmission, BUT MY DAD AND ME can have it out and in in 3 thats with 2 people working on it, and not all the tools that are at a shops disposal. Now if 2 people can do it in 3 hours and you charge $90/hour thats an extra $270 that's not necessary. Most ASE certified mechanics couldn't tell their butt from a hole in the ground. I'm sorry if I'm ranting but its too true that there are too few mechanics out there anymore that take advantage of people. I mean look at a brake job, most places charge $90/ axle for labor to do brakes, then charge you for parts. thats over $200 for brakes. You can go to Autozone get your brakes for $40 for all 4 wheels have them on in 45 minutes and be done. Pathetic.

Answer 8

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