Had an indy shop do a center bearing and a U-joint. They billed me $365, inclusive of "shop fees" of $35. What the 'heck' is that for? A couple of spritz of brake clean and a shop rag? It's not like they did me a favor: the bearing was $32 at O' Reilly's - not saying they got it there, so for reference purposes only - but they charged me $131 for it and I got billed $1.03 for a flange nut, so again, they didn't have to make up any kind of lost profit with a "shop fee". I'd much rather they upped their labor rate than pad the bill with a "shop fee".
"Shop Fees"
- Thread starter Nayov
- Start date
- Status
I've noticed an increase in these type of charges. Today, nearly every shop does it; some have a max limit charged, like $35. 20 years ago, only a few shops charged the shop fee. Sometimes the free market doesn't work in your favor when nearly everyone gets on board with a charge like that.
$35 is allot of shop rages, I'd go give them [censored]!!
I always tell people that complain about auto repair shops that if they don't like how something is done, they should learn to do it themselves.
With the ever-increasing taxes and regulations on Business, I expect more such creative ways to meet their financial obligations. They have to make enough profit to keep the business a viable concern, or they will be out of business.
Unlike our Government, business owners can't just print money, or indefinitely accrue an ever-increasing debt. Well, I guess some can run their business into the ground due to incompetence, and be bailed out by the taxpayers. But it seems only a select few have the right pull to make that happen.
With the ever-increasing taxes and regulations on Business, I expect more such creative ways to meet their financial obligations. They have to make enough profit to keep the business a viable concern, or they will be out of business.
Unlike our Government, business owners can't just print money, or indefinitely accrue an ever-increasing debt. Well, I guess some can run their business into the ground due to incompetence, and be bailed out by the taxpayers. But it seems only a select few have the right pull to make that happen.
Last edited:
I think the complaint here is in how the charges are presented sorta like ADP - additional dealer profit.
I'll play your game. Shop fees pay for all the extra stuff that doesn't get billed out as an individual item i.e. brake clean, grease, misc bolts, chemicals, rags etc. Shops have been doing it for years; its usually a percentage of the labor. Raise their labor rate instead of charging a shop fee? Wouldn't it mean you are still paying the same amount in the end?
Relax, if you don't like it open your own shop and don't charge a shop fee. After your first year in business, your accountant is going to ask when are you going add a shop fee to cover for the all the items not billed out on an invoice. or Better yet how about you do the work yourself. Not trying to be a jerk, it costs alot of money just to turn on the lights and open the door of any business. Most shop owners aren't getting rich-they are normal middle class small business owners.
Dave
Relax, if you don't like it open your own shop and don't charge a shop fee. After your first year in business, your accountant is going to ask when are you going add a shop fee to cover for the all the items not billed out on an invoice. or Better yet how about you do the work yourself. Not trying to be a jerk, it costs alot of money just to turn on the lights and open the door of any business. Most shop owners aren't getting rich-they are normal middle class small business owners.
Dave
The shop charge is, ostensibly, to cover the cost of unbilled items such as chemicals, rags, small hardware, etc. In reality it is simply another revenue stream for the shop. It is calculated as a percentage of the subtotal, sometimes with differing percentages based on parts and labor. I believe that in the shops I have worked in it was mostly calculated from the labor total, and maxed out at $25-$35.
Shops have crazy overhead to keep the doors open.
My old man had a shop for 50 years, never once charged a shop fee. Now if you are running a machine shop or something where you have some special waste disposal needs, then I can see a very modest charge for that(chemical solvents etc).
As for markup on parts, it happens. Why? Because it costs and arm and a leg for tools and equipment these days. Go buy a fuel pressure tester gauge with all the adapters from Snap On and you will see why you get hit with list price for the fuel pump you just had replaced.
As for markup on parts, it happens. Why? Because it costs and arm and a leg for tools and equipment these days. Go buy a fuel pressure tester gauge with all the adapters from Snap On and you will see why you get hit with list price for the fuel pump you just had replaced.
The shop I worked in eons ago would charge $9.00 for a can of brakleen, whether or not all of it was used. One quirt was the full charge. he'd put misc for nuts & bolts and charged per item, usually 50 cents each. for rags, he actually didn't charge for those.
I told him to just charge a 3% shop charge that'd cover everything that was "misc". He said it wasn't enough profit.
So when the EPA started making shops charge the hazardous fee for oil & tires, he put $4 EPA fee on every invoice, even if it was a flat tire repair.
How'd he justify that? Well we had to touch the tire which was hazardous material.
The guy wasn't to nice, and ripped people off constantly. But quality of work was high, so he kept getting repeat business.
I told him to just charge a 3% shop charge that'd cover everything that was "misc". He said it wasn't enough profit.
So when the EPA started making shops charge the hazardous fee for oil & tires, he put $4 EPA fee on every invoice, even if it was a flat tire repair.
How'd he justify that? Well we had to touch the tire which was hazardous material.
The guy wasn't to nice, and ripped people off constantly. But quality of work was high, so he kept getting repeat business.
Originally Posted By: Mr Nice
Shops have crazy overhead to keep the doors open.
Not true in all areas of the country, sure if you live in
LI NY, but if you live in a rural part of the South, the costs of operation are generally low except for equipment, which can be bought used at a reasonable cost.
I have no issue with shop fees as long as they give you a reasonable itemized description of why it is being charged.
If they just put the term "shop fee" I think it is a
obvious rip off.
Shops have crazy overhead to keep the doors open.
Not true in all areas of the country, sure if you live in
LI NY, but if you live in a rural part of the South, the costs of operation are generally low except for equipment, which can be bought used at a reasonable cost.
I have no issue with shop fees as long as they give you a reasonable itemized description of why it is being charged.
If they just put the term "shop fee" I think it is a
obvious rip off.
Last edited:
Just another way to increase revenue...
And I thought $ 150 per hour would cover pretty much everything... silly me...!
Yes, $ 150 per hour shop rate at local Honda dealers... last year $ 128, year before that $ 110...
And I thought $ 150 per hour would cover pretty much everything... silly me...!
Yes, $ 150 per hour shop rate at local Honda dealers... last year $ 128, year before that $ 110...
Originally Posted By: geeman789
Just another way to increase revenue...
And I thought $ 150 per hour would cover pretty much everything... silly me...!
Yes, $ 150 per hour shop rate at local Honda dealers... last year $ 128, year before that $ 110...
But, the govt says there is no inflation...lol
Just another way to increase revenue...
And I thought $ 150 per hour would cover pretty much everything... silly me...!
Yes, $ 150 per hour shop rate at local Honda dealers... last year $ 128, year before that $ 110...
But, the govt says there is no inflation...lol
This is just another example of what are called junk fees charged by many businesses, like banks, airlines, cable services and a host of others.
Shop supplies should typically be considered as part of the overhead involved in running a shop, not something that can be billed to each customer.
As long as people are willing to pay a shop supply charge and not question it or refuse to pay it as something they didn't authorize in their acceptance of the original repair cost estimate, shops will continue to bill it.
Shop supplies should typically be considered as part of the overhead involved in running a shop, not something that can be billed to each customer.
As long as people are willing to pay a shop supply charge and not question it or refuse to pay it as something they didn't authorize in their acceptance of the original repair cost estimate, shops will continue to bill it.
always ask how much !!!
Where I am fee for any work is $3.50. Buys me a pair of gloves, rags, glasses, to protect myself, and associated disposal fees. Might be work calling the shop and asking, sometimes its a flat fee, sometimes its based on a percentage of the total cost
I do photography and I don't charge a fee for cleaning my lens before takin their photos or a battery charging fee.
So how about this question.
So, hypothetical shop charge $100/hr labor rate and $15 shop fee on every ticket.
Would you rather pay the one time $15 fee or would you feel better if they didn't have a fee but the per hr rate was just $115?
I mean if I owned a shop I'd probably just get rid of the $15 fee and add that $15 to the labor rate. I see that as more profitable.
So, hypothetical shop charge $100/hr labor rate and $15 shop fee on every ticket.
Would you rather pay the one time $15 fee or would you feel better if they didn't have a fee but the per hr rate was just $115?
I mean if I owned a shop I'd probably just get rid of the $15 fee and add that $15 to the labor rate. I see that as more profitable.
Hello, Off the top of my head I'd rather see an inclusive rate.
Disposal fees seem straightforward. A tune up generates no scrap tires for example.
I knew a printer who after itemizing paper, press time, special inks etc. would add 15% to the total.
That line was labeled "JLT".
Stood for "Just Like That". Kira
Disposal fees seem straightforward. A tune up generates no scrap tires for example.
I knew a printer who after itemizing paper, press time, special inks etc. would add 15% to the total.
That line was labeled "JLT".
Stood for "Just Like That". Kira
- Status
