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spencersauto
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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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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

Posted
Posted
3 minutes ago, Old and Tired said:

Dang, you got me by $1.99.

No, you misread it....   It was a challenge for you to beat.   You deserve a pay raise!

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JerryK Rookie

JerryK

Posted
Posted

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.

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CTC Rookie

CTC

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Posted

Base these numbers on the math not on what everyone else is doing. Each marked is different 

  • 4 weeks later...
Hands On Community Regular

Hands On

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Posted
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.

JerryK Rookie

JerryK

Posted
Posted

We are in Plano, Texas and our shop labor rates are $175 for domestic, $195 for Euro and $225 for 1975 and older cars.

Guest

Guest

Posted
Posted
On 12/1/2021 at 1:26 PM, Old and Tired said:

Dang, you got me by $1.99.

Raised it again to $158.  

Jerrys Auto Center Apprentice

Jerrys Auto Center

Posted
Posted

Happy new year all!

Browsed through this almost 4 year old thread and very happy to see rates trending in the correct direction.

Located in a working middle class in Long Island, NY…

1/1/22 raised labor rate from $137 to $153. 

  • 2 weeks later...
Guest

Guest

Posted
Posted

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? 

Jerrys Auto Center Apprentice

Jerrys Auto Center

Posted
Posted

I aim for 60%-63% overall GP on parts except batteries and tires which are both usually in the 30%-35% GP area. 
I don’t look at parts and labor relationship to each other but if parts are limited more labor is charged, such as diagnostics which is billed at 1.5 times our regular labor rate.

  • 2 weeks later...
Guest

Guest

Posted
Posted
On 8/6/2017 at 9:02 AM, Old and Tired said:

116 in Austin

It's interesting to see where we were at almost 5 years ago. Now its $158.00. Still seems low.

  • 2 weeks later...
Guest

Guest

Posted
Posted
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.  👍

  • 1 month later...
IDAS Cleveland Newbie

IDAS Cleveland

Posted
Posted

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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