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Survey – Labor Charges
Which best describes your labor charge system?
_____ One hourly rate_____ Two or three rates_____ More than three rates_____ Labor matrix_____ Other ________________________Which labor guide(s) do you regularly use?_____ AllData_____ Chilton_____ Mitchell_____ Motor_____ Other ________________________ -
6 Replies
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Mine is three rates, although most labor is billed at the middle rate. The low is used for promos, and the high rate for extended warranty or heavy diag. Using the average to high real time labor guide times as I am in a rural area without parts delivery and the nearest jobber is 10 miles away. Round trip tp the parts house takes me .6 and that gets reflected in my labor times, as well as parts margins
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I should mention that I do not add .6 to each job, but rather rely on the RT labor times to offset the fact that I have to run my own parts
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I have 2 hourly rates. One for everyone and one slightly less for fleet customers with 10 or more vehicles. We use Alldata rates + about 20% X our hourly rate.
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Which best describes your labor charge system?
__X___ Labor matrixWhich labor guide(s) do you regularly use?_____ AllData__X___ Chilton__X___ Mitchell__X___ Motor -
We are a transmission shop. We do mostly transmission and drivetrain-related work and no general repair. The jobs we get are pretty repetitive to us. We quit using hourly rates and the labor guide years ago. We charge by the job and not by the hour.
Just like in general repair, if somebody had to do a water pump or timing belt on the same type of vehicle over and over they would get pretty quick and pretty good at it. We beat the labor guide so bad because of that phenomenon, I got tired of explaining it and dropped the hourly charge concept because I think it is antiquated. Most techs can beat most times unless it’s a first time repair.
When we have to charge an hourly rate, like insurance companies or extended warranty companies, we do charge $125/hr. But even then, some of them say “We only pay $XX per hour.” We have a choice of getting the difference out of the customer or letting it go. We make that choice on a case-by-case basis due to the fact that the number of hours is sometimes so great that we don’t worry about it.
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2 rates, Normal and normal x 1.5 for “Bring my own parts people”. Most won’t bring own parts then.
We use Alldata 95% of time. 5% Mitchell and Chilton.
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