Reasonable Shop Labor Rate

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What do you folks consider to be a reasonable labor rate for an auto shop?

Just curious.
 
Toronto area around $85, or $95 for dealerships, plus they pad the parts prices by 100% over what you'd pay at the auto parts stores. This is one reason I do my own work when possible I don't get paid $50/hour after taxes, but I can save that much per hour doing my own brake jobs.
 
It seems like the shops here charge 75.00 an hour labor here, which I find unreasonable. I think 55.00-65.00 is in the "fair-ish" range. (Actually I think 20.00 an hour straight labor is more than fair, but auto mechanics have always pulled in the big bucks). When I say "straight labor" I mean the guy doing the grunt work is worth 20.00 an hour, I don't think I should have to pay for the shops overhead, tools, and accesories (which more than often you're billed a separate "materials" charge anyway). I know that mechanic work is a skilled trade (I even used to work at a garage) but what other comparable skilled trade commands that type of price tag? I just don't see it personally.

Dealerships are the absolute living end though when it comes to labor prices. Example: I had the ignition cylinder wear out in my Saturn, Dealership wanted 120.00 for the part and 180.00 for the install. I bought the part for 14.00 at Autozone and it took me all of five minutes to install it. I saved myself 276.00 and I'm satisfied knowing it was installed correctly.
 
All shops here are variable. The dealers were at $95/hour. My favorite indy's are at about $60 (up to date, etc.). My pal is still @ $30-$40 max.

Indy shops don't have as many people in your pocket ..although many still try. NAPA charges more for parts ..the indy just passes it on and marks it up ..so that could sorta be a poor boy version of the Parts manager reaching in there. He doesn't have the Service manager to pay ..nor the chick (typically) that collects your money and files the WO. The tool man and equipment man gets their dues from the INDY ...but that's even worse at the dealership ..but the indy is also the owner ..so there's another hand that isn't out reaching into the customer's bill.
 
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Shops charge between 85 to 150 dollars per hour here. Most shops charge about 100/hr, which is a rate that I personally find to be reasonable.

Considering the investment in tools that mechanics have to make (I know many techs who have 50-80k invested in tools), coupled with the costs of facilities, continuing education and workmans comp, 100/hr doesn't seem unreasonable to me.
 
Quote:
I know many techs who have 50-80k invested in tools


No one asks them to invest that much. That's like when the dentist says that they're going to a new superior process and that you're receiving more value in dental care. I'll take the old prices at the old level of dental care if the added utility isn't equating to equal value to me.

Or you could figure (imagine real dumb sounding voice) "Sure I need to charge more. I just bought this fancy machine/tool and it allows me to do twice as many jobs in a day. Now that means I'm supposed to be making more money ..but it cost so much, that I need to charge more, since even with it, and doing more work, I can't make enough money to pay for it - DUH".

This is the "I've been convinced by the machine/tool guy that I deserve the new tool and that I deserve the extra charges to pay of it. If they're truly an investment, then the wrench bears the burden of making them pay in using them, not charging for them to enable more buying of tools ..to charge more for ..and on and on...

Quote:
coupled with the costs of facilities


Suppose it's a shiitehole and costs nothing compared to the state of the art facility that charges a mere 10% more?? Suppose it's been paid for for decades? Not that it matters much ..the market will bear what the market will bear ..but "justification", as you can see, tends to fall into the vapor of "what if?".

Quote:
continuing education


How do you know the clown charging you extra for continuing education actually gets it? Suppose he just watched your video and is now a brake expert and that's all he does??
 
Richmond VA Mitsubishi dealer is 81, independent 78. My issue with the dealer is all the upsell tactics, tried to sell me a injector service, says additives don't work then I look at their recommended service schedule and they dump BG oil and gas additives in customers tanks and of course charge for it. Don't even ask the customer if they want it, just do it!! Coolant changes years before the owners manual recommends them as well as other services more often then the manual recommends! I guess they depend on owners not reading the manual and going by their recommendation!

Their comment about upselling, everybody does it! Yea, well one of the reason I only see a dealer if no other choice!
 
I have found one honest mechanic in 30 years of vehicle ownership,which I use When I have a big job that requires a lift and specialized tools.
I don't mind paying for a good mechanic,but when some guy tries to sell me a $1000 brake job,I laugh like [censored].
Rarely does my car see a mechanic.
 
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I made my living as a flat rate mechanic for many years. Some jobs you lose money some you make money, you just have to work and eat the losses.
That being said, when I found out that the last year I was in business after expences,taxes etc I was working for $1.4o an hour I closed it down.
Self employment has it's ups and down and I enjoyed the ride, I never cheated anyone and can look at myself in the mirror.
BTW my shop rate was 50/hr and most [censored] about that.
 
Originally Posted By: kingrob
It seems like the shops here charge 75.00 an hour labor here, which I find unreasonable. I think 55.00-65.00 is in the "fair-ish" range. (Actually I think 20.00 an hour straight labor is more than fair, but auto mechanics have always pulled in the big bucks). When I say "straight labor" I mean the guy doing the grunt work is worth 20.00 an hour, I don't think I should have to pay for the shops overhead, tools, and accesories (which more than often you're billed a separate "materials" charge anyway).


Who do you think should pay the shop overhead, taxes, environmental and permit fees, insurance (health, liability), etc, etc, etc for the job done on your car?
 
The government.
LOL.gif
 
Originally Posted By: TooManyWheels
Originally Posted By: kingrob
It seems like the shops here charge 75.00 an hour labor here, which I find unreasonable. I think 55.00-65.00 is in the "fair-ish" range. (Actually I think 20.00 an hour straight labor is more than fair, but auto mechanics have always pulled in the big bucks). When I say "straight labor" I mean the guy doing the grunt work is worth 20.00 an hour, I don't think I should have to pay for the shops overhead, tools, and accesories (which more than often you're billed a separate "materials" charge anyway).





Who do you think should pay the shop overhead, taxes, environmental and permit fees, insurance (health, liability), etc, etc, etc for the job done on your car?




Not me!!!?!?!?!?
 
Originally Posted By: TooManyWheels
Originally Posted By: kingrob
It seems like the shops here charge 75.00 an hour labor here, which I find unreasonable. I think 55.00-65.00 is in the "fair-ish" range. (Actually I think 20.00 an hour straight labor is more than fair, but auto mechanics have always pulled in the big bucks). When I say "straight labor" I mean the guy doing the grunt work is worth 20.00 an hour, I don't think I should have to pay for the shops overhead, tools, and accesories (which more than often you're billed a separate "materials" charge anyway).


Who do you think should pay the shop overhead, taxes, environmental and permit fees, insurance (health, liability), etc, etc, etc for the job done on your car?


Surely the customer is paying the whole freight on everything. There is no other source of income to the enterprise. Easy enough to see.

Like many things, automotive service is in a "collision" between needs and reality that isn't going to be pretty. The Critic is a neo-generation participant and doesn't much know any better. He sees nothing wrong with spending upteen $$ on a brake job that should never have to be performed.

So, you've got leading edge shops having to charge more and more for technological evolutions that never needed to occur out of anything other than complicating the wheel. Each and every service provider plays their own version of Pontius Pilate and
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's and says "Not me. ..it's the tools I have to buy or the the car manufacturer ..the emissions requirements ..the CAN vs. OBDII ..etc...etc.

Then some trade magazine posts an article "Shop material and disposal fees...a wave of the future??" as a title ..and then everyone starts adding this to a bill that's already covered this stuff from the beginning of time. Heck, it works for one customer ..it works for all, right? So now you've just added another nick in someone's wallet out of "rationalization".

Remember what the tool dealer told you ..cause it's the same thing his sales manager told him (since he's a "customer" too), "Not only do you need that $5 in that guy's wallet, you DESERVE IT!".
 
Originally Posted By: TooManyWheels


Who do you think should pay the shop overhead, taxes, environmental and permit fees, insurance (health, liability), etc, etc, etc for the job done on your car?


And who is going to pay for the NBA basketball team? The sports arena? The shopping malls? The 4000 home sub divisions? The office buildings? The race track? The 18 million dollar homes (many of them in 4 states)?

All above is one guy who has 38 dealerships in 4 states. And started out 40 years ago as a parts guy in a Toyota dealership.

Good for him that he has done so well
thumbsup2.gif
, but I'm not going to pay his rip off labor rates.

Back to the original question, a reasonable labor rate would be about $30-$35 which is $20-$25 for the mech and $10 for the cost of the shop.

These @$%&^&! stealerships like the guy above @ $90 hour on up are a rip off. But hey, you never know when you need to buy another NBA team.....

Bill

PS: And the guy above his ads on the radio, tv all say at the end "after all you know this guy"
smirk2.gif


PPS:
Quote:
The government.
crackmeup2.gif
 
And what's with the shops that charge a 75.00 "OBD II" service? The ads say to come on in and we'll hook your car up to our machine and perform a "computer diagnostics" to determine why your check engine light is on. News flash... most part stores do it for free!

I had an 02 sensor go out on me and it was a pain to replace, I took it to a garage and they charged me a 99.00 "Computer Fee". I asked what that meant and the crook said it was for clearing the code out on the engine. I told him I could have taken it next door to Advance and they would have cleared it for free. He said he couldn't guarantee the work unless he made sure the code went off, which I completely understand. I just refused to pay 100.00 for less than a minute of "labor". I told him I refused to pay it and if need be I would take him to court over it, as I never authorized that work. We went around and around and finally he just said forget it. I already paid him 75.00 (an hours labor) for a half an hour job then he wanted another 100.00 to stick a connector to another connector and press a button? I think not.
 
In bay area it is around $85 or so. But, every mechanics tell you a different price for the job because it is different amount compare to the book (Michell). Usually I'd call a few mechanics and ask them how much to do a particular job (brake, timing belt, etc) and find the one I'd trust that aren't out of whack in price, but not the cheapest.

My dad went to one with the most convenient location, and they didn't install the camber kit they charged $40 for installing. I found it 2 years after the fact.
 
Originally Posted By: Bill in Utah
Originally Posted By: TooManyWheels


Who do you think should pay the shop overhead, taxes, environmental and permit fees, insurance (health, liability), etc, etc, etc for the job done on your car?


And who is going to pay for the NBA basketball team? The sports arena? The shopping malls? The 4000 home sub divisions? The office buildings? The race track? The 18 million dollar homes (many of them in 4 states)?

All above is one guy who has 38 dealerships in 4 states. And started out 40 years ago as a parts guy in a Toyota dealership.

Good for him that he has done so well
thumbsup2.gif
, but I'm not going to pay his rip off labor rates.

Back to the original question, a reasonable labor rate would be about $30-$35 which is $20-$25 for the mech and $10 for the cost of the shop.

These @$%&^&! stealerships like the guy above @ $90 hour on up are a rip off. But hey, you never know when you need to buy another NBA team.....

Bill

PS: And the guy above his ads on the radio, tv all say at the end "after all you know this guy"
smirk2.gif


PPS:
Quote:
The government.
crackmeup2.gif



Many garages around here pay their techs about 15 bucks an hour and charge 50-75. I think the mechanic and we the customer are both getting the shaft. No wonder many mechanics end up starting their own businesses.
crazy2.gif


I think the dealers make enough on the parts markups as it is. The local Saturn dealer wanted 9.85 a quart for ATF and almost 50 friggin bucks for two radiator hoses on my SL. No thanks.
 
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Most people that think that a shop can charge 20-25 hr and still stay in buisness have never owned a shop or dealt with the ownings of a shop. My experiences are from the nyc area. Most of these independent shops around here charge 90/hr and they dont make money unless they rip people off. These shops charge 90 and do a fair job with the proper equipment they are not making alot of money. Then a [censored] service mananger comes in and increases their profit 100-200% by ripping people off and he is making the shop profitable.
 
Originally Posted By: The Critic
Shops charge between 85 to 150 dollars per hour here. Most shops charge about 100/hr, which is a rate that I personally find to be reasonable.

Considering the investment in tools that mechanics have to make (I know many techs who have 50-80k invested in tools), coupled with the costs of facilities, continuing education and workmans comp, 100/hr doesn't seem unreasonable to me.


if 100/hr is reasonable to you personally. why do you search high and low for information to DIY?
 
Originally Posted By: Cutehumor
Originally Posted By: The Critic
Shops charge between 85 to 150 dollars per hour here. Most shops charge about 100/hr, which is a rate that I personally find to be reasonable.

Considering the investment in tools that mechanics have to make (I know many techs who have 50-80k invested in tools), coupled with the costs of facilities, continuing education and workmans comp, 100/hr doesn't seem unreasonable to me.


if 100/hr is reasonable to you personally. why do you search high and low for information to DIY?


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