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Flat rate at repair shops

Discussion in 'General' started by crashman, Nov 25, 2014.

  1. crashman

    crashman Grumpy old man

    Where do those numbers come from? I replaced tie rod ends and lower control arms on the kids car while drinking beer and bullshitting with a friend and still did it under the hours quoted. I also got the parts off of Amazon Prime for about 1/2 of what the shop quoted for better parts than they were going to use. I understand they need to make money but an old guy that has never done the job before and working off of jack stands should not be able to do the job in less time than a shop with a lift and all of the proper tools. 100% markup on parts seems a bit steep too...
    3 repair shops were close in price so it was not just 1 shop.
     
  2. Mongo

    Mongo Administrator

    Experience in what it takes to run a shop at a profit is my guess. There is an actual book that has the rates in it but no clue who makes it or if there is more than one.
     
  3. crashman

    crashman Grumpy old man

    I have seen the flat rate book for bikes and assumed that cars had something similar but I was just wondering where the numbers came from. If I can do repairs in less time than someone who does that for a living there is something wrong. If it really doesn't take that many hours then repair shops are billing for hours not worked.
     
  4. Mongo

    Mongo Administrator

    Of course shops are billing for hours not worked - same as bike shops. That's where the profit comes in for the shop and the wrench.
     
  5. Dave K

    Dave K DaveK über alles!

    Got to pay for the over head some how. They ain't the United Way.
     
  6. crashman

    crashman Grumpy old man

    Ya, I know. I am just bitching that they charge so damned much that it was worth my while to crawl under the car and get dirty. I would way rather let someone else do it but over $700 savings for 4 hours work makes it worth my while. I would have far rather given them $300 or $400 to do the work but with so many mechanically incapable people out there today the shops can charge pretty much what they want.
     
  7. RM Racing

    RM Racing Tool user

    Those who have never done flat rate work for a living seem to have a hard time understanding it. Realize that most motorcycle shops multiply published flat rate by 1.5 for non-warranty work. This is so efficient mechanics can feed their families and such stuff.

    Your job went smoothly - there are always flat rate jobs that kick your ass. Believe me, it all evens out.
     
  8. ESmith

    ESmith Well-Known Member

    I'm a mechanic that get's paid flat rate in an automotive shop. Everything we quote comes from a labor guide. I'd say generally I get things done around half of book time or a little more. What you don't consider is that some techs do a lot they don't get paid for like diagnostic/ pricing jobs/ talking on the phone. ( We don't have a service manager.) That's how we make a profit. Sometimes you get your ass kicked on a job that doesn't go smoothly and get paid the same. It evens out. In my opinion mechanics don't get paid enough for what we go through.
     
  9. redtailracing

    redtailracing gone tuna fishin'

    Labor guide rates are determined by what the factory suggests, iirc. Now where they get their numbers I have no idea.
     
  10. Past Glory

    Past Glory I still have several AVON calendars from the 90's

    Flat rate tables come from the manufacturers and as 'RM Racing' states, they're not always on the mark. Only people who haven't done shop work for a living think that shop pricing of parts and labor is a rip off. They never seem to take that ultimate step of opening up their own shop. Imagine the number of shops that would close because of their entrance into the game.
     
  11. crashman

    crashman Grumpy old man

    So what y'all are telling me is shops need to double their hourly rate to be profitable and double their mechanics hourly wage to pay them fairly? IMO, padding the hours is a bullshit solution. And the "some jobs go rough and it evens out" doesn't really fly with me. If it is my job that takes extra work I should pay for that. But flat rate does make it easier for the service writer.
    The guy that was helping me drink my beer while I was doing this used to work flat rate as a motorcycle mechanic so I did have the perspective of a flat rate guy. I am just glad that I have the ability to perform these repairs myself when the costs get out of hand.
     
  12. Reckless_Kelly

    Reckless_Kelly Well-Known Member

    Having spent 15yrs working flat rate mechanical jobs, I can say without hesitation, that sometimes you beat the quoted time and sometimes you wonder who the f$%k can do the job that fast. Example: replacing the headliner in a VW Jetta. "book time"-1.3hrs, "real time"-4hrs. You have to remove the passenger front door, passenger front seat, and the center console trim in order to get it to fit without ruining it. On the flip side, replacing the fuel injectors in the same car. "book time"-4.1hrs, "real time"-1.8hrs. Hopefully you have a service manager who recognizes which jobs are realistic and keeps an eye on who has what hours, without playing favorites...
     
  13. JJJerry

    JJJerry Well-Known Member

    My uncle was a 'service engineer' for EDS/GM for a long time.

    That was his job - tear cars apart, write the manual and determine labor hours.
     
  14. RM Racing

    RM Racing Tool user

    Simple solution - don't take your vehicle to a flat rate shop. Like I said, unless you've busted your ass through flat rate work, it's hard to understand. There are numerous posters on here telling you that the system is fairly equitable, if not even a bit unfair to the guy doing the work over the long run. You asked for opinions, you got some, they didn't jive with your view, you rejected them. Cool. Do the work yourself - we'll even offer helpful advice. :)
     
  15. metricdevilmoto

    metricdevilmoto Just forking around

    Did the guy helping you drink beer help in any way, shape or form with the job? If so, your hourly rate doubles any time four hands were in there instead of just your two.
     
  16. Critter

    Critter Registered

    1) How long did it take you to talk with the customer?
    2) How long did it take you to write up the repair order in your garage?
    3) How long did you spend with the cashier?
    4) How much was your light bill last month?
    5) How much was the power bill last month?
    6) How much was your insurance?
    7) How much did you pay for your house?
    8) etc Etc etc

    Add all those things up and that will tell you why you beat flat rate...
     
  17. mmfoor

    mmfoor Team Stupid!

    It always amazes me when a complainer wants to make 100 grand a year and bitches about his unfair pay scale, but then chastises a professional that wants to earn maybe half of that resulting in some kind of quality of life for his family.
    Overhead? Medical insurance, sick days, life ins., building, power, water, administration, advertising, inventory, blah, blah, blah.......
    Great if you can do the work and save a buck, but damn look at the full picture of the dude trying to make a decent wage. Guess flat-rate should be based on a socialist financial model.

    And, I near got killed when a motor put together by an amateur with a beer drinkin' buddy seized at Rd Atlanta. Just sayin.'
     
    Last edited: Nov 25, 2014
  18. chwolfe

    chwolfe Well-Known Member

    Automotive flat rate times are far more generous than in the motorcycle industry. I know car techs that routinely turn out 80 - 100 hours per week. That is unheard of in the motorcycle world. I believe that M/C manufacturers keep flat rate times low to control warranty costs. It is also why bike shops usually charge more per hour than car shops.
     
  19. 418

    418 Expert #59

    Surprise, surprise. Guess he was rolling in so much money he retired?

    No where more than in automotive/powersports service industry do people feel entitled to tell the shops what they should charge. Crashman, since it's obviously such a racket you should open your own shop and show us how it's done. Good luck.
     
  20. Banditracer

    Banditracer Dogs - because people suck

    When we had Suzuki the tech guys told us that realistically most of the time if we could do the job in 1.5 the time of flat rate we were good. Time was calculated on brand new stuff in ideal conditions. Not rusty and starting to seize like in the real world.
     

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