I have a guy who has opened up a shop up the street from me who is advertising brake pads and rotors installed for $129.95. If he buys a decent quality pad and rotors he will probably have a minimum of $90 in it and if cheap ones at least $70. This means he has his tools, overhead, insurance, and labor priced at $39.95-$59.95. He is a guy who probably knows how to work on cars but not how to run a business. I have found that if you buy customers you get what you pay for. This guy does not realize that that type of pricing creates a business model that cannot be sustained. The one man shop works himself to death being paid much less than what I pay my techs.
I lost a job for a long term customer to another shop a few months ago because the other shop is real cheap on labor. That was months ago and I had forgotten about it until today when that truck appeared in the shop with a running problem and the other shop had given up on it after messing with it for months. In 30 minutes my lead tech knew what was wrong with it. Now I personaly know the other shop owner and he is a great guy. However, when your price yourself as cheap as he is you cannot afford to hire higher skilled techs and this owner is like me as he never was a tech. He has 2-3 parts changers working for him but they cannot handle anything beyond basic stuff. This wasn't a difficult problem to solve if you have any driveability background. My point is you can't worry about being the cheap guy in town and have the tools, training, and people needed to face up to the modern shop work.
This was a 93 Dodge Dakota that stumped this shop couldn't handle whereas our shop is moving into working on BMW's, Mercedes, Jaguar, etc. We currently have a Subaru 2.5T boxer engine tore down as I write this doing a headgasket. This is common stuff to some of shops but our shop started as a muffler and brake franchise but had to get into full service to survive.