What would you charge for this work?

[The Critic]

On this site, folks often express outrage at the prices charged by independent repair facilities and dealerships for repair work.

So let's try an exercise. For the purposes of this thread, put yourself in the shoes of a shop owner. With consideration given to your local area's labor rate, take a look at the scenarios below and post what YOU think is a reasonable charge for the work below. To make this easier, I have included the book time for any repairs.

Also, keep in mind that these are higher-end cars that recently came off of warranty - so you should approach this exercise with the expectation that the owners are looking for quality work that lasts.

Note: all 3 scenarios are from cars that were recently repaired by me.

Scenario #1 - 2010 Lexus RX350 with 70K miles:
Customer requested the following services:
- Engine Oil and Filter Replacement (using 0W-20, the vehicle calls for 6.3 quarts)
- Tire Rotation and Brake Inspection (customer stated that the brakes were noisy)
- Basic Vehicle Inspection

Customer was recommended and subsequently approved the following work:
- Replacement of Front Brake Pads and Rotors (Book Time is 2.0 hours)

Scenario #2 - 2007 Mercedes GL450 with 40K miles:
Customer requested the following services:
- Engine Oil and Filter Replacement (using 0W-40, the vehicle takes 9 quarts)
- Tire Rotation and Brake Inspection (customer stated that the brakes were noisy)
- Basic Vehicle Inspection

Customer was recommended and subsequently approved the following work:
- Replacement of the Rear Shock Absorbers (Book Time is 3.6 hours, vehicle does not have ADS)

Scenario #3 - 2008 Lexus ES350 with 50K miles:
Customer requested the following services:
- Engine Oil and Filter Replacement (using conventional 5W-30, the vehicle takes 6.3 quarts)
- Diagnosis of the Check Engine Light

Customer was recommended and subsequently approved the following work:
- Tire Rotation and Brake Inspection (to satisfy the manufacturer's recommended services at this mileage interval)
- Replacement of the Downstream Oxygen Sensor to resolve the current Check Engine Light (Book Time is 1.2 hours)
- Replacement of the Front Brake Pads and Rotors to resolve the brake vibration that was noticed during the road test (Book Time is 2.0 hours)

I look forward to reading the responses. Please provide some detail behind your responses (i.e. labor rate, approximate cost of parts, parts mark-up, etc).

Thanks!

 

[cptbarkey]

all kidding aside, this should be a fun thread.

 

[SatinSilver]

Why are you asking? Because the customers thought or acted like the final price was too high or do you want to make sure you're charging enough?

 

[The Critic]

Originally Posted By: SatinSilver
Why are you asking? Because the customers thought or acted like the final price was too high or do you want to make sure you're charging enough?

Neither. Just wanted to see how BITOG'ers would approach and price those services.

 

[Quattro Pete]

1. $500

 

[demarpaint]

To keep it simple. Double your cost on parts, with the exception of the oil and filter, that I'd sell at cost plus 15%. The oil could be changed while you're doing the other work. EG: brake job 2 hours book time, I'd include the oil change labor in the 2 hours. Backyard mechanic $75/hr. Shop $100-$135/hour. Those are the rates around here. If you beat the book you pocket the extra cash, if you run into a problem and the book beats you, bill for the actual time spent doing the job.

 

[crazyoildude]

I find that a lot of people that drive high end cars are either broke or very cheap...We used to do a lot of high end car engines and some of them would dance better than John travolta when they heard the price and we were always in the middle price wise..

On number one $225.00
Number two around $275.00
#3 depends on how long it took to find the cause of the cel and what parts were used were they oem?
These were only guesses we only did engines in my shop.

 

[Ethan1]

Originally Posted By: demarpaint
Double your cost on parts


Even domestic parts don't come with anywhere near a 50% wholesale discount. A good wholesale discount for Jaguar parts is 15% - should a shop charge 170% of MSRP for Jag parts in order to preserve the parts gross?

 

[RamFan]

Scenario 1 - $400 to $500
Scenario 2 - $600ish
Scenario 3 - $650-700

Figure $75-100/hr labor, parts excluding oil/filters are at a 50% markup, oil and filter at a 10-15% markup. Rotations and inspections aren't factored in since the repairs are being done. If repairs were denied, $50/hr diagnostic for first 1hr of diagnostic time, $75/hr for everything over. $20 for a rotation.

 

[Falken]

Scenario 1: ~700$
Scenario 2: ~950$
Scenario 3: ~1200$

That would be ballpark in Canada, front brake jobs up here (pads and rotors) is North of 500$ even on a beater Honda or Toyota.

I inflated the prices a bit as this is a "luxury" segment.

The oil changes on these Lux cars are marked up a bit too (larger sump, nicer waiting room etc), especially on the Merc.

 

[demarpaint]

Originally Posted By: Ethan1
Originally Posted By: demarpaint
Double your cost on parts


Even domestic parts don't come with anywhere near a 50% wholesale discount. A good wholesale discount for Jaguar parts is 15% - should a shop charge 170% of MSRP for Jag parts in order to preserve the parts gross?


Some do. Then if the part is defective and they have to eat the job they're glad they did. I've seen $30 rotors billed out at $100. I had a friend who recently retired from and sold his auto repair business. Every part he sold with the exception of batteries, oil and a few other select items he doubled his price. I guess you could use your discretion. People driving a Jaguar typically pay through their teeth for parts and service.

If you don't feel comfortable doubling money on parts mark them up as you see fit.

 

[Falken]

^doubling parts cost has been a well known rule of thumb forever, I totally agree.

But they don't double the cost that the Shop gets the parts for with their secret discounts.

They double the "street price" on the part.

Then if someone insists that they supply the Shop the part, wow, that NEVER goes over well.

"Well, if there is a problem with your part, there is no guarantee, you buy our part..."

Even me, I would worry about providing my own part. The repair doesn't go as planned, your supplied part will most likely end up burning you in some way.

 

[JHZR2]

Im assuming this is a non-retail, non-shop scenario, where this is being done to some extent as a favor in someone/your driveway.

1) 3 hrs
2) 5 hrs
3) 5 hrs

Now what is your rate? That differs around the country and by how much you like someone. I suppose that $50/hr would be cutting them a deal, but $20/hr is more like it if youre just doing it for fun and beer money.

Youre not a shop and youre not paying taxes, so Im not so sure that the $100/hr akin to a lower-cost indy (or higher, in which case why not send it to the dealer?) is prudent. But if you can get more, and/or they offer it, take it!

While I made up hours on there, you know when you started and stopped, so you can more accurately define based upon that.

 

[VeeDubb]

Originally Posted By: crazyoildude
I find that a lot of people that drive high end cars are either broke or very cheap...We used to do a lot of high end car engines and some of them would dance better than John travolta when they heard the price and we were always in the middle price wise..



Most wealthy people I know are leasing new high end cars every three years not driving high end cars out of warranty.

I would guess $400-$600 for #1. Not sure about 2 or 3.

 

[demarpaint]

Originally Posted By: Falken
^doubling parts cost has been a well known rule of thumb forever, I totally agree.

But they don't double the cost that the Shop gets the parts for with their secret discounts.

They double the "street price" on the part.

Then if someone insists that they supply the Shop the part, wow, that NEVER goes over well.

"Well, if there is a problem with your part, there is no guarantee, you buy our part..."

Even me, I would worry about providing my own part. The repair doesn't go as planned, your supplied part will most likely end up burning you in some way.


Exactly. My BIL bought a water pump for his Caravan from ebay. He took it to a local shop and asked to have them install it. About 2 weeks later it sprung a leak. He ended up having to pay the shop to supply and install another water pump. The shop discounted their water pump 10%, which ended up being a little over twice what he paid for the pump on ebay, and he had to pay for the labor again. I don't know what the outcome was with the ebay vendor.

Some shops will allow you to supply parts, then they add their markup on the part you brought them to their labor.

 

[AirgunSavant]

I get nickeled and dimed every day. Nothing new.
I personally don't do that but with this economy most everyone is on the cheap.
Not just with car repairs.

 

[Quattro Pete]

Originally Posted By: JHZR2
Im assuming this is a non-retail, non-shop scenario, where this is being done to some extent as a favor in someone/your driveway.

He asked to put yourself in the shoes of a shop owner, so i'm guessing he's asking what we think a shop would charge for these and not necessarily what he would charge out of his driveway.

 

[AirgunSavant]

Scenario 1 - $720.
Scenario 2 - $825.
Scenario 3 - $1075.

 

[VeeDubb]

Originally Posted By: Falken
^doubling parts cost has been a well known rule of thumb forever, I totally agree.

But they don't double the cost that the Shop gets the parts for with their secret discounts.

They double the "street price" on the part.

Then if someone insists that they supply the Shop the part, wow, that NEVER goes over well.

"Well, if there is a problem with your part, there is no guarantee, you buy our part..."

Even me, I would worry about providing my own part. The repair doesn't go as planned, your supplied part will most likely end up burning you in some way.


I don't understand why people would supply their own parts unless it was, say, an upgrade. For example, VW used plastic impeller water pumps so some people would get the upgraded ones with metal impellers from a tuning shop. But outside of that, supplying your own parts to save a few bucks just doesn't seem like a smart strategy. The mechanic has all kinds of hidden ways to screw you or not put in their best work if you nickle and dime them.

I always pay my mechanic well for good service. Once he flushed my brakes for $50 and did a thorough job including bleeding the clutch. I told him to boost his price to $80. A quality mechanic is hard to find and when I find one, I want him to stay in business.

 

[Wolf359]

Originally Posted By: VeeDubb
I don't understand why people would supply their own parts unless it was, say, an upgrade. For example, VW used plastic impeller water pumps so some people would get the upgraded ones with metal impellers from a tuning shop. But outside of that, supplying your own parts to save a few bucks just doesn't seem like a smart strategy. The mechanic has all kinds of hidden ways to screw you or not put in their best work if you nickle and dime them.

I always pay my mechanic well for good service. Once he flushed my brakes for $50 and did a thorough job including bleeding the clutch. I told him to boost his price to $80. A quality mechanic is hard to find and when I find one, I want him to stay in business.


I don't understand why people wouldn't supply their own parts. You can get the parts cheaper online and they may have a lifetime warranty. You're not going to get the lifetime warranty from the part the mechanic supplies. Lots of parts have them, struts, brake pads, front end parts, lots of moog stuff, etc. I wouldn't supply parts to a mechanic that I think was trying to screw me, I wouldn't use one that was. I usually find mechanics that don't mind if I supply my own parts. Sure they give you that line that if it fails, I may pay twice, but I've never really had that happen. Plus when you supply your own parts, you show up and the parts are already there, lots of times the mechanic doesn't have the part in the shop anyway and they have to order the part so what's the difference? With AAP codes, you can actually get parts cheaper than the mechanic can with his standard business account.