samgoto96

Our employees have all been on a flat hourly rate. How do you deal with the techs on hourly plus incentive? I am interested in hearing opinions on this topic. I always thought that the base hourly rate with incentive somehow worked in would always increase workflow / productivity. The only issue that I see is how do you deal with warranty work?

We have been trying to give our customers the best local price on parts possible. We changed stuff up the first of the year a little bit but here is our basic price matrix; 200% on $0 - $5, 150% $5 - $10, 140% $10 - $100, 130% $100 - $750, 125% $750 to $2,500, and 120% on anything over $2,500. Our shops labor rate is $94.78 an hour. If someone is paying with cash thay get a 7.5% cash discount, and a 2.5% discount for paying with a check, the discounts are applied on both parts and labor. This has allowed us to stay competitive on pricing with the parts stores and all of our OEM parts are cheaper than they can go to the dealership and buy them for. I will also note here that we are a small diesel repair and performance shop, primarily working on light and medium duty diesel pickups, we also have tax on parts and labor here in Wisconsin. We are currently trying to find the best shop software to meet our needs and are having a hard time finding software that does this. It seems like everyone either has great invoicing options and not very good parts ordering options or vice versa. We would also like a Time clock and vehicle inspections Incorporated in the software we decide on.

This is how I do it also. I do not show any labor on invoices for our personal vehicles, just parts @ cost, for the trucking company I do the same thing just tax-exempt with a exempt form on file for the company.

I would be interested in hearing what you have to say, 608-632-3544 we are a diesel repair and performance shop. Sent from my XT1650 using Tapatalk

We write up an invoice with parts @ cost for sales tax purposes & no labor, if an employee did the work he gets his regular hourly rate.