[stantheman]

Joseph,

I would recommend that you contact your Parts Vendors (someone you trust) they have other customers in your area also… He knows a lot about his customers and will know area labor rates. Labor Claims for parts failure …. Personally I would want an idea but I would still base My Labor Rate based off what it takes for My Shop to be Profitable. Not what everyone else is charging….All aspects of a Automotive Repair Shop have a Target Number (percentage) that needs to be met for the business to turn a Profit.. Labor is a Key Performance Indicator (KPI). Expenses is another one … Parts Margin is another one .. Average Dollar Per Car is another… So I would recommend that you start with working on these first. If you don’t know how don’t let that get you down. Most don’t. Seek some training from someone then Invest in a Software Management System that will provide you with that information so you can Work On Your Business. Hope this Helps…

Stan Williamson
Business Improvement Specialist
AMS RO Writer

[stantheman]

For instance, let’s say that your labor rate is $100 an hour and your monthly labor sales were $50,000. If you have three technicians and you paid each tech 200 hours that month, that’s a total of 600 labor hours. In theory, you should have made $60,000 in labor sales. But since you only made $50,000, that means your effective labor rate is at $83, not $100. You’re paying those 600 hours to your technicians but you’re not collecting them from customers