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Flat Rate for a New Tech
We are considering switching to a flat rate system instead of hourly. The techs need more motivation and this could be the way to do that. We are in NC. What is the standard flat rate for a new mechanic? What is the flat rate for a new body repair tech and one that has been here for about 7 years, but does not produce at a high level?
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1 Reply
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Candy Raynor wrote:
> We are considering switching to a flat rate system instead of hourly. The techs need more motivation and this could be the way to do that. We are in NC. What is the standard flat rate for a new mechanic? What is the flat rate for a new body repair tech and one that has been here for about 7 years, but does not produce at a high level?
Candy:
Flat rate (and any other pay system for that matter) really should be set according to labor gross profit goals…commonly in the 65% to 75% range. In other words, you figure out what you can afford to pay and set the rate accordingly. If that does not work out for whatever reason, then adjustments may be required to how the shop bills.
We can’t discuss labor rates here, however the idea is to pay the tech somewhere between 25% and 35% of your effective labor rate.
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