[chidsey]

Posted Labor Rates have been just under $100 for nearly 10 years now in the aftermarket while car dealers have no qualms about charging into the three digits regularly.  In fact using grid labor rates and multi-tiered rates the posted or factoring rates continue to climb as the jobs get longer and tougher.  Appropriate I say!  Posted rates are really only a sign on the wall,a calculating factor for estimating the job to the customer based on an estimated time spent, and rarely really represent the time and labor cost of the job.  “Effective” Labor Rate and the margins on the parts vs the “loaded” cost to do the job is what pays the bills and puts a little money in your pocket at the end of the day, not the posted Labor Rate.  Move your Posted rate appropriately to move your ER where you need it to pay the bills, keep your techs, attract new techs, make some money and grow your business.  Never, ever discount Labor.  If you must, discount parts. Labor only jobs are less profitable than a job with parts since there are no parts margins and should be higher to compensate for that factor and it makes sense since most labor only jobs are diagnostic in scope and takes the most highly compensated talent.  Think about this for a minute, if your posted rate was for each 10th of an hour what would you charge?  $20 per 10th?  Now it all makes sense, right?