I was in a local auto repair shop yesterday waiting to talk to the owner. A customer was discussing her Durango and having the water pump replaced because it was leaking. He quoted her $300 to change the leaking water pump out and she said she would have to wait because she couldn't afford that. She asked what it would be to change the thermostat (I guess because it was stuck closed). He quoted her $40 for the thermostat and another $60 to change it out. I know he has overhead to pay and employees to pay, I guess it seems high to me because I know what parts cost and I am able to do things like this myself.
When you are running a business, you consider the whole cost...the building...insurance....administration....etc. and charge a rate that keeps you in business. A lot of Fiero vendors have run into trouble because they don't run their little operation like a business.....and then we all get mad.
Taxes, unemployment, rent, state/city fees, lawyer, certifications, insurance, returns, advertising, Internet, phones, website, tools, training, & after all that, gotta be able to write your own check too.
That cost isn't overhead on a part, it's keeping the doors open & food on the table. It pays for time, it's pays for a skill.
[This message has been edited by no2pencil (edited 03-10-2015).]
Then too, you have to figure for problems. People refuse to pay after the work is done at the agreed-upon price. They want to negotiate a lower price after the work is done. Or they waste your time in one fashion or another. Or they will pay, but it takes moinths, for one reason or another. Or, when they pay, their card declines for one reason or another.
Not to mention replacing the thermostat on a Durango that no one has bothered to change the coolant in and the bolts for the thermostat housing like to break off in the timing cover. But they look easy. The water pumps, I don't mind doing.
One time I was at Jiffy Lube for their economical oil change special (don't judge), and this woman came in for cabin Air Filter Replacement". If I remember right, JL charges $29 for this service which is the biggest rip off in the world. When they left to go attend the bay, I told her how much they are and how easy it is to change in a Honda and she jotted down the info.
As a shop owner, parts markup to the general pubic is typically 50% (double cost). At some greedy shops or dealerships it is list price plus 25% which is usually triple cost. My labor rate is $110 per flat rate hour. If a job calls for four hours and it takes me one, I bill the four hours because that is what the job calls for and because my experience and skill allows me to do it much faster. I don't bill in hours at my shop, but I bill it as a labor charge. The book says that my labor is $xxx and that is what it is. It s a gamble. I could lose my shirt or make better money.....or break even. Shops also add environmental fees, state BS fees and misc fees. I don't do that because they are BS. Most shops don't know how to calculate their needed shop labor rate and just guess or go by what the shop next door is charging. I have mine broken into percentages and I have a very calculated formula that will allow me to always pay my bills, myself, and my employees as well as the overhead and add money into a savings account every month....and still be much cheaper than the dealerships. Also keep in mind, that the average Master Tech makes over $100k a year....you're not paying someone $15 an hour to work on your car. Dave
Also keep in mind, that the average Master Tech makes over $100k a year....you're not paying someone $15 an hour to work on your car. Dave
Probably depends on area, I had a friend Ford certified making $17 an hour, and was the best worker at the dealership. I suppose he wasnt a mastertech though. The thing is a mastertech isnt required for alot of jobs IMO.
Probably depends on area, I had a friend Ford certified making $17 an hour, and was the best worker at the dealership. I suppose he wasnt a mastertech though. The thing is a mastertech isnt required for alot of jobs IMO.
My oil change guy makes $18 an hour here....but it probably depends on the area and quality of work expected.
Wages are very low here in Florida, I would imagine oil change guys make $8 an hour, on the other hand our property taxes and home prices are also way lower than New Jersey and we have no state income tax.
I was in a local auto repair shop yesterday waiting to talk to the owner. A customer was discussing her Durango and having the water pump replaced because it was leaking. He quoted her $300 to change the leaking water pump out and she said she would have to wait because she couldn't afford that. She asked what it would be to change the thermostat (I guess because it was stuck closed). He quoted her $40 for the thermostat and another $60 to change it out. I know he has overhead to pay and employees to pay, I guess it seems high to me because I know what parts cost and I am able to do things like this myself.
40 dollars for the theromostat is the cost of the part, the gasket, the rtv if used, and shop supplies the p/b blaster used on bolts, the rags, the seat cover/floor mat cover. the coolant to refill/top off. then the 60.oo labor got to remember parts for newer vehicles are not cheap.. a 2009 Durango with a hemi t-stat is 28.99 now add the gasket.. the shop gets a better price.. so say 25.00 his cost t-stat and gasket not much of a bump in price as most stops work on a 100% mark up on parts.. so a 28.99 t-stat and a 3.00 gasket would be 64.oo
Yes I am sure you are right, I would lose my shirt because I would be too sympathetic to peoples sob stories, well on the other hand maybe not if it meant feeding and housing my family.
We did a $2500 repair on a BMW at no charge for a regular customer that was in a bad situation. She was in between jobs at the time. Since then, she has referred many other customers and has been a great customer for us too.
Yes I am sure you are right, I would lose my shirt because I would be too sympathetic to peoples sob stories,
I don't have a repair shop, but people have often asked me to help with things. Small things I will do as a favor. Too often it's people who aren't members of the club "finding us" for help, who are then to cheap to spend the $20 to be a member afterward.
But I don't want to get involved with changing clutches etc. I always worry about something going wrong (faulty part) or something else breaking totally unrelated, but blamed on the work I had done.
We did a $2500 repair on a BMW at no charge for a regular customer that was in a bad situation. She was in between jobs at the time. Since then, she has referred many other customers and has been a great customer for us too.
Dave
That was very nice of you.. many shops do help out people BUT.. most times it's a customer they have done business with, not an off the street customer.. As a shop owner even then you have to be able to fell them out, you can tell most times when a new customer is just being cheap, shopping around, or the one really hard up for cash.. The problem is to many times, a shop will help someone and get burned, the ole, That worked fine before you touched it.. like somehow the rear brakes grinding had anything to do with a timing belt..
That was very nice of you.. many shops do help out people BUT.. most times it's a customer they have done business with, not an off the street customer.. As a shop owner even then you have to be able to fell them out, you can tell most times when a new customer is just being cheap, shopping around, or the one really hard up for cash.. The problem is to many times, a shop will help someone and get burned, the ole, That worked fine before you touched it.. like somehow the rear brakes grinding had anything to do with a timing belt..
She has been a customer for many years. The parts were less than $100...it was the two days of labor that was the big part of the bill. We did the right thing....no regrets.
She has been a customer for many years. The parts were less than $100...it was the two days of labor that was the big part of the bill. We did the right thing....no regrets.
Dave
Yup, most times with long time customers it's worth it just in word of mouth, sometimes with a new local customer.. I've given up many hours after punching the clock, as it were to help someone out.. it's a great feeling when they are truly thankful.
