"Shop Fees"

[JHZR2]

A flat fee of 4% implies to me that it is sctually their fee, ie a secured profit margin. I'm surprised it's only on labor if you bring your own parts. Is labor higher if you bring the parts?

Having done more than a few oil changes and whatnot, I get that cleaning chemicals, rags, etc all is incurred. Any time a single but or bolt is needed, it's itemized, but there are other costs. I don't have a problem paying for that stuff, but the flat fee doesn't rub me the right way either.

 

[Vikas]

Compared to what I am hearing here, I am completely shocked how my mechanic treats his customers. When he does state inspection and finds a blown center mounted brake light bulb, he removes stuff to get to the bulb, replaces the bulb, completes his inspection and refuses to take extra money. I have seen fix him a punctured tire and NOT accept any money. Any time I ask him how difficult a job would be for myself to do it, not only he encourages me but actually hands me necessary gaskets and/or bulb etc items from his stock, gratis.

That is one of the reason, I do not hesitate to hand him big job without even asking for the estimate. Since most of the time, I hang around, I have seen how he treats other customers. Apart from being able to hang in the shop, I am not getting any better treatment than what he gives to everybody else.

Very rarely, I see a free lift in his garage and most of his employees have been there long time.

I know couple more shops which are supposedly good too (based upon hearing from our family friends). I believe these types of shops might be rare but they exist in all towns. Most likely, those would be run by immigrants ~

 

[02SE]

Originally Posted By: Vikas
Most likely, those would be run by immigrants ~


What is your point? All of us or our ancestors were immigrants.

 

[Vikas]

at least around here, almost every gas station is owned by an immigrant

 

[jk_636]

Originally Posted By: Vikas
Compared to what I am hearing here, I am completely shocked how my mechanic treats his customers. When he does state inspection and finds a blown center mounted brake light bulb, he removes stuff to get to the bulb, replaces the bulb, completes his inspection and refuses to take extra money. I have seen fix him a punctured tire and NOT accept any money. Any time I ask him how difficult a job would be for myself to do it, not only he encourages me but actually hands me necessary gaskets and/or bulb etc items from his stock, gratis.

That is one of the reason, I do not hesitate to hand him big job without even asking for the estimate. Since most of the time, I hang around, I have seen how he treats other customers. Apart from being able to hang in the shop, I am not getting any better treatment than what he gives to everybody else.

Very rarely, I see a free lift in his garage and most of his employees have been there long time.

I know couple more shops which are supposedly good too (based upon hearing from our family friends). I believe these types of shops might be rare but they exist in all towns. Most likely, those would be run by immigrants ~


That is a good mechanic. I would go to someone like him forever. Send him a $100 gift card for Christmas. Tell him to take his family out to dinner. A reward for all the good work he does. That is a real mechanic. A man that just love turning wrenches and helping people.

 

[philipp10]

Originally Posted By: jk_636
Originally Posted By: Vikas
Compared to what I am hearing here, I am completely shocked how my mechanic treats his customers. When he does state inspection and finds a blown center mounted brake light bulb, he removes stuff to get to the bulb, replaces the bulb, completes his inspection and refuses to take extra money. I have seen fix him a punctured tire and NOT accept any money. Any time I ask him how difficult a job would be for myself to do it, not only he encourages me but actually hands me necessary gaskets and/or bulb etc items from his stock, gratis.

That is one of the reason, I do not hesitate to hand him big job without even asking for the estimate. Since most of the time, I hang around, I have seen how he treats other customers. Apart from being able to hang in the shop, I am not getting any better treatment than what he gives to everybody else.

Very rarely, I see a free lift in his garage and most of his employees have been there long time.

I know couple more shops which are supposedly good too (based upon hearing from our family friends). I believe these types of shops might be rare but they exist in all towns. Most likely, those would be run by immigrants ~


That is a good mechanic. I would go to someone like him forever. Send him a $100 gift card for Christmas. Tell him to take his family out to dinner. A reward for all the good work he does. That is a real mechanic. A man that just love turning wrenches and helping people.


And a guy like that will win a customers loyalty long term. I know of a good guy like that too. More than happy to tip him.

 

[AWDatTQ]

Someone already pointed out but for years now, the BAR in State of CA does not allow "shop fee" on invoicing. You have to specify the actual item being charged (ex. cleaner, grease, clamps, etc) Shop rags are a "shop supply", so simply write it off on your taxes. I get the whole "additional charge" income benefit, but in reality, just bump up your labor rate, makes so much more sense on the long run. Our labor rate was $99 and still cheaper than local dealers.

 

[Nayov]

Originally Posted By: Pop_Rivit
Originally Posted By: Nayov
I'd much rather they upped their labor rate than pad the bill with a "shop fee".

So you're willing to pay it, you just want it hidden so you don't have to see it, right? Didn't they present you with an estimate before the work began? Did you agree to that estimate? Did you question the shop fee at the time the estimate was presented?



An increase in labor rate in leu of a shop fee is hardly "hidden".

Yes, he said $300 for the job which I thought was reasonable. When I picked it up, the bill was for $365 because they found that the U-joint was going south so they replaced that without calling me and I didn't flinch over that because I thought it was reasonable and they acted in my interest.

A shop fee is a blatant, naked and sneaky source of pure unadulterated profit -- the ugly sister to the "documentation fee" on a new car purchase.

 

[whip]

When did it become wrong for a business, especially a small business to be profitable?

 

[antiqueshell]

Originally Posted By: whip
When did it become wrong for a business, especially a small business to be profitable?


The problem is that the crooked, and thieving shops far far outnumber the honest ones, so understandably most customers think they are going to be screwed, blued, and tatooed.

 

[Vikas]

I can't imagine a mechanic charging extra for a bolt or screw or zip-tie or plastic body pin and having it invoiced on the repair bill!

When rear O2 sensor was replaced, I had to revisit him because *I* did NOT give him one of the necessary part. On the revisit, he would not charge me even after begging him. When I pointed out that it was not fair to his mechanic who did do the actual work, he told me not to worry. I am only hoping his mechanics are not paid per job. Some of the mechanics, I usually slip a tenner or so, but this guy had a bad temper, so I did not even try. The owner suggested that I bring some Indian sweets for him as I was leaving for the trip in next few days. Which I did and visited him after coming back to USA.

So when he charges me few hundreds for a brake job or wheel bearing replacement (or lots of hundreds for full timing belt job), I blindly sign the credit card bill after the work is completed.

Coming back to the original topic, is it possible to find shops like that every town? Few of you are saying yes. How about others?

 

[AdRock]

Originally Posted By: clinebarger
Adding shop supply fee's to the labor rate wouldn't work in most cases, Tech's get paid a percentage of the Labor or Parts/Labor. Can't go around paying your employees for shop supplies they didn't buy. To keep the paper work straight...The supplies fee needs its own line on the invoice.



If pay were % based then yes I would agree.

Every shop I know about, and every shop ive been a tech in has always paid a flat rate hr rate. If I agree to be paid 25 per flat rate hour then it doesnt matter what amount the shop labor rate is. This is how everybody I know of does it. Under this way of doing it the fee could be added to the labor rate.

or, if the labor rate is 100, and your average ticket is 3 hours labor charged, up the labor rate by 7, which probably wouldn't make people mad. Then you would make an average of 21 more avg per ticket. And not have people bothered by seeing a shop fee.

 

[cb_13]

Originally Posted By: jk_636
http://www.bobistheoilguy.com/forums/ubb...wha#Post3654323

Here is a whole thread on why or why not a shop should charge to read a CEL code. Apparently mechanics dont care much about what you think of their fees. If you dont pay it, someone else will.

Just pulling a code is not a real diagnosis. Autozone will do that for free if you want just the code pulled. The diagnostic fee is how the tech gets paid to figure out the problem. Without that they are working for free until they start the repair. Unless you want random parts thrown at your vehicle the diagnostic fee is not a bad thing. On the flat rate system the tech is not getting paid unless you are getting billed. It is a real winning formula for shop owners everywhere, not so much for the tech or the customer most of the time.

 

[Robenstein]

Originally Posted By: whip
When did it become wrong for a business, especially a small business to be profitable?


It is not wrong, but it is very short sighted. By not charging for ever drop of brake cleaner, every shop towel, and every little thing (as the one mechanic praised in another post did) you show yourself to be a stand up guy. You may make a few less bucks per job, but over time you earn repeat business, referrals, and word of mouth advertising.

There is still plenty of meat on the bone...trust me. And by not turning the customer upside down and shaking every last cent out of their pockets, you will be rewarded.

 

[Vikas]

Build a loyal customer base who does NOT shop around for their car maintenance need and then you can have nice profitable albeit small business.

If your aim is to open more shops, use service writers, have plush waiting rooms, then you will need to use all the usual tricks of the trade to extract every single penny from your customers. Heck, there are lots and lots of trade publication which provide seminars on how exactly to do that! Every advertisement will tell you how buying induction service machine will increase the profits and how you could pay it off in months using the extra revenue. Many of those magazines are even available on the web and can be read by the general population.

 

[Scott_Tucker]

In California, you can not charge 'shop fees'. You have to account for everything used. A lot of shops just build it into the labor rate because in the end that is easier. You've got to pay for it somewhere its just a matter of how they word it.