Tagged: #autotechpay #needtechs
May 10, 2017 at 6:32 am #25417
Not at all like an ASE test, but more of a natural gifts test is available from the company noted below for techs and for advisors.
5355 Plainfield Ave. NE
Grand Rapids, MI 49525
Tom@AutoCentricRepair.comMay 10, 2017 at 6:13 pm #25431
I’m not sure my shop could keep that could keep an A tech in parts. we 65 miles from parts . I would love to try though. it hard to find A techs in rural Wyoming.May 15, 2017 at 12:17 pm #25494
Seems to be an easy question for anyone to figure out for any technician:
Tech costs you: 75k a year = 1442 a week
Figure in a 15% load and that tech really costs- $1660 a week
Now you want your tech cost around 17.5-20% so lets take his $1660 a week and divide it by the 17.5% = $9485.71 (this is the number of sales $ in labor he needs to produce)
Since he is at 50 hrs per week- take your 9485.71 and divide it by 50= $189.72 which would need to be your effective labor rate in order to keep his percentage in line.
Now if you wanted to keep him at the 20% cost your effective labor rate would have to be around $166 per hour to pay for him on the work that he does.
Of course there are some instances where you may be paying this- for instance an A tech who has 20 years tenure- but then you would have to be cheaper on your other technicians by a wide margin.May 15, 2017 at 3:49 pm #25512
Hi Catonauto, I do not follow your math. 50 hour’s at 135 hr is $6750 You could pay tech 1687 and be under 25%.
Give me a great A+ tech i pay him whatever is needed. Great techs keeps me away from the shop with low stress.May 16, 2017 at 8:23 am #25528
Sorry yes my math is flawed forgot one step-
It is correct to say his amount of sales production must be $9485.71
However to calculate the labor rate you would need to find your part to labor ratio. For sake of argument call it 50/50-
so his labor needed is 4742.86 which is then divided by his 50 hrs per week- meaning your ELR needs to be 94.85 on the work he performs- much more palatable but, it still depends where in the country you are and what you collect.
Thanks Vdepot for checking up- I knew something seemed a little off.June 4, 2017 at 11:55 am #26196
I was a tech from 1983 to 2003 and always a drivability diagnostic and electrical specialist. 2004 until 2016 I was in management and then decided to go back to my true love, diagnostics. I took a job in a small tire store chain because they hired me. I averaged $1100 a week doing maintenance, brakes, chassis and I was their diagnostic specialist, but there was very little diagnostic work there. I finally got a job in a Mazda dealership for the purpose of becoming their go to diagnostic tech. They are training me and I am already their top guy for difficult issues. I now average $800 a week, about 10% more than I made 25 years ago 1992. I would make much more to stay a brake pad changer in a tire store, unfortunately I find that just to boring to do.
When I diagnose difficult wiring problems, intermittent drivability issues, ect., the kind of repairs that save us from lawsuits, CSI disasters and buybacks, my boss is lucky to get enough time out of Mazda to make my flat rate pay to actual time come out to minimum wage. I enjoy this work and fortunately am in a position in life where I can take the hit sometimes. The thing is that while I’m doing this the other techs that are making 45-55 hours a week and are vocally glad I’m there so they don’t get stuck with this work. There is zero incentive to gain my diagnostic ability by techs that will be financially punished for doing so. Manufacturers pay so little warranty time now that the best a tech can hope is, with practice, to break even after a few attempts. (I just got paid 0.6 hours to diagnose a poorly functioning parking brake, and replace and bleed a left rear caliper)
Much more is covered under warranty, (we are getting ready to put free ball joints on THIRTEEN year old cars). Maintenance intervals keep lengthening. Cars don’t break like they used to. These realities are the reasons we have survived this long with the dwindling talent available.
Now manufacturers have changed all sales departments to unit volume incentive so service departments are being depended on more to provide profit to the dealership while maintaining perfect CSI against surveys that are not designed to register customer satisfaction but force dealers to provide more services. That means the business plans for service have had to lower the percentage of tech cost per hour to make gross profit. The system is close to collapse.
It has taken a long time and a lot of small changes to get here. There is no one answer. The solution will take a lot of small changes. Someone better start making those changes or manufacturers are going to have no one to do all the warranty work they sponsor to stay out of court.
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