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employees wages / warrany repairs
i have two questions. how many shop owners are paying their techs 1/2 of the hours they bill out? we are looking to hire another tech and some of the techs that are seeking employment are asking for 1/2 of the hours they bill out and with benefits. and also with gurantine of a base pay when work is slow. I know at one time this was the going rate years ago and also at some dealerships, but with the cost of doing business, i cant see how this is possible. our shop pays by the hour and with bonus base on hours billed out. and my other question is how are shops dealing with comebacks due to faulty parts? it seems as if we have been doing alot lately. the only parts house that pays any type of labor claim is napa and that is only on a certein dollar amount repair and then it is only for a small percent of the labor. this really cuts into the profit. we try to use only the name brand parts. but we are also having problems with them. iam told that the chain stores make you pay for 50% to 70% of the labor. any feedback would help.
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4 Replies
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Never pay a percentage of labor billed out. Only those who are no longer in business, or will soon be out of business, do so. Any time you raise the labor rate the tech would get a raise thereby increasing your costs.
Offer a fair wage per hour for your area, whether that be a flat rate or salary as is your choice, but never a percentage of billing.
Good luck and Merry Christmas!
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You need to define a “comeback” to your techs. Work not completed properly, missed diagnosis, or a general lack of responsability on the part of the tech is considered a comeback in my shop. The tech will be expected to correct their mistakes at no cost to the shop or customer. As for the parts warranty, we give the customer the choice of warranty on parts. If they want 12/12 then we only use suppliers that offer labor for that amount of time. If suppliers only pay for the part, then make your warranty 12 months part, 90 days labor. I explain that if failure was due to faulty installation, then it will be covered for the 12 months. [comeback and done by the tech at no charge] Selling a quality repair is done by the service advisor. If the customer desires a low priced/quality part, then they should be expected to take on the responsability of possible early failure and it needs to be explained that way. If the desire is for a part to last another 100k, then they should understand that those parts are more expensive and may need to be sourced from a dealer.
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We only pay flatrate. If they want a guarantee that should tell you something about the confidence they have in themselves.
If it’s a part failure I personally don’t believe that’s the techs fault. We pay them at the normal customer pay rate for part failures. If your using poor quality parts you may want to start using a better quality.
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we dont use poor quailty parts. we use mostly napa parts or dealer. we had gotten a fuel pump from the local chevrolet dealer. we always bench test it first before we install the part. well guess what? it didnt work. when my wife call the dealer, the parts manager comment was ” that dosent surprise me”. we have already found window and wiper motors bad right out of the box. and if we ever get a part were the box has been open or tape closed, we send it back. other garages in the eara tell me they have the same problem. it isnt any fun when you have to do the job over.
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