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gandgautorepair
gandgautorepair

Good point. One of the things we did to build car count was go to cheap oil changes, which dropped our ARO. We've worked hard to get ARO and GP up to where it should be, and we're finally having a ver

Joe Marconi
Joe Marconi

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ohlmannr
ohlmannr

My experience in the past two years I went from $85 - $95 then $95 - $105 my car count has increased.  Industry standard is around 2 hrs per RO I think. So if you raise your rate $10 per hr the increa

bantar Community Regular

bantar

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Northern suburb of Dallas....  We bumped our labor rate to $149.99 (from $130) at the beginning of August.    It's been 4 months.  No one noticed, nor complained.   We're staying busy and have more work now than before.

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Hands On Community Regular

Hands On

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On 12/12/2021 at 3:01 PM, JerryK said:

We are in the Dallas area... Our labor rate is currently $175 for domestic, $195 for European and $245 for pre-1971. We expect to raise rates again in January 2022.

I need to make this a regular thing for myself. We do a "pre 1971" about 6 to 12 times a year. I have a 1960 Nash metropolitan in my shop, I set at I think at 229 an hour. Customer balked at first, but Noone else wants to work on it. He begrudgingly approved the work, then told me his wife is making him sell it now.

The 1966 mustang that was in at the same time had no issue at all with his bill, he was prepared financially for his hobby.

I just bumped to 144.95 at the end of the year. I think I will go for the $149.95 on Monday. It 8s way easier to find customers then employees. If I can get up to $175 an hour I will put out an add offering $55 an hour for technicians. Maybe I will find one.

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Do any of you smart successful people look at the percentage of gross sales that your cost for parts is? If so, what's the goal and do you raise labor or parts prices to the customer to achieve the goal? 

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Guest

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6 hours ago, Joe Marconi said:

Agree Frank, and to add to that, for the most part too many people in our industry have been underpaid for too long, and that includes the shop owners too. 

I also agree that being the cheapest guy in town is a  sure way to go out of business. We are not mass-marketers, we are a specialized group of professionals with a lot of associated costs of doing business. We need to charge what we are worth. 

 

I found out last week that the Honda dealer is at 198 so I raised ours another 20 to 178.  At this rate my take home pay might actually equal an Amazon driver's! Haha.  👍

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IDAS Cleveland Newbie

IDAS Cleveland

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We are based in SE Tennessee and are charging $100/hr for asian and domestic & $125/hr for European and diesels.  We shoot for 35-40% markup on parts.  We have lately had quite a few customers asking for work on 1975 and older vehicles and I have not been adjusting my prices much for this.  But like some other shop owners I think I will increase the price for those jobs as it always includes many suprises and 10x time comittment.  Thanks as always for all the great info!

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
      By Joe Marconi in Joe's Blog
         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.

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