"Shop fees"

That is pretty normal now adays.

 

Its a charge that covers stuff like rags, penetrating oil, brake clean, small bolts/nuts/screws, o-rings, fuses etc.

Usually its just easier to charge a flat fee than to try and account for every little 1/4" bolt, shop rag, can of WD40, etc. That stuff adds up quick and believe me, if the boss asked me to try and keep track of all that on each job it probably wouldn't happen.

That being said, its a dang'd if you do, dang'd if you don't scenario. Contrary to popular belief, service departments don't normally generate the net revenue you'd think they do.

 

Penetrating oil sounds about right…

 

By the time the dust settles a shop won't make much off each mechanic. Wages, insurance, workers comp, benefits, taxes, building lease/payment, building upkeep, power, maintaining shop tools etc.

You wouldn't believe how much running a welder 6 hours a day does to a power bill.

 

A roll of shop towels is dang near $90. Nitrile gloves are about $35-40/box. Brake clean is like $5/aerosol can. Cheaper if you buy it in a 4 gallon pail. Its like $150 then.

You don't want to know how fast a shop will burn through that stuff lol.

 

Wait until you get a $3500 heating bill for 1 month of winter weather. Doors up and down all day long. Heaters don't shut off all day.

Not saying shops aren't profitable but there's a lot more to it than everyone thinks.