shop rates

Well check this out. This guy does a good job explaining why it is the was it is.

Labor Book Hours Explained — Wicked Wrench Co.

 

I've worked at dealers. I know where they get those numbers from lol. That's why I call it all BS.

 

In a clean ideal situation on a bench!

 

With a brand new unit and all specialty tools there within arm's reach.

 

Agreed. I know this well. But some you can make time up on. The IH hydraulic brakes paid a 1/2 hour to pull wheels to install a caliper tensioner slide kit. With some luck and holding your tounge correctly. You could do this in about 3 minutes from the backside.

Series 60 diamond seal was a money maker too.

But normally a mechanic loses. Shop wins.

 

That's why I like heavy equipment better. Hardly ever dealt with that crap unless it was a component rebuild.

 

Its why I didn't stay in a dealer long.

Better off at a small shop that's prideful of work, not book time.

 

Do not quite agree on double, but his offering of "Weekends" and "Nights " is certainly worth more than 9-5. No exp in heavy trucks but 14 years myself owner of forklift shop. We circled the shop with a compass, 10 mile circles. Anything in those circles had a PU and D charge equal to one hour labor and increased $10.00 each expansion. (Don't lose your mind now)
We started in Sept 1979. Competition labor rate was $35.00 per hour. We went with $32.00. Logic, we did not have "special tools" and it took us a little longer... But our finished work was superior to
theirs. The 1st circle was $32.00 to pickup with the rollback, then add $10.00 per expansion.
Billed service calls at time out and time back (portal to portal) at $32.00 per hour.
Competition raised rates annually and we just stayed $3.00 under them right along.
You cannot "give away" your labor. Do one thing; do it well, get your price and COLLECT it..
Did this work? Myself and two partners. They were excellent mechanics-1 on big gas and diesel trucks/some forkllift. The other long time forklift mechanic for large grocery op that had sent him to
a factory school on the just coming our electric forklifts. They fixed, I managed, sold, did parts, and drove the PU and Del. Also collected.
Opened in 79 with $5,000 capital stock, S corp. Sold to a name brand dealer in 92 for $175,000.
Worked out a 5 yr non compete for them. Retired awhile and went to selling casters, wheels, and hand trucks/non powered stuff.

 

What's it cost to run your business?

That's the first thing you need to know to decide your rate.

Next item what's your skill set, can you handle anything thrown at you......or do you holler calf roped and send a bill?


Are you timely or slow as smoke off day old cow ####.



You wanna be fair to your customers do good work in a timely fashion. Be on point with diagnosis and take care of any mistakes.

 

If you have to ask should you really be doing it?