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Old 01-16-2011, 05:31 PM   #1 (permalink)
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Hour Labor Rate Fair Price?

I read in my local weekly an interview with a service repair shop. The owner interviewed for the article says the Labor rate at his shop is $100 an hour. The reason he said this, was getting the repair done right the first time. Is this a fair hourly rate, or could the guy be pulling something over his customers (his shop is highly rated and he has won awards and been recognized as well)? Thanks

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Old 01-16-2011, 08:03 PM   #2 (permalink)
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I don't know too much about market prices, but that sounds about right. Is this a dealership or independent shop?? One thing to consider is costs of living and parts etc. So obviously service fees go up. Yes of course be on your guard about being ripped off.
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Old 01-16-2011, 08:26 PM   #3 (permalink)
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Quote:
Originally Posted by ECHOKnight2000 View Post
I don't know too much about market prices, but that sounds about right. Is this a dealership or independent shop?? One thing to consider is costs of living and parts etc. So obviously service fees go up. Yes of course be on your guard about being ripped off.
Sorry I don't have any more to say
That's okay, Thanks. It is an independent shop
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Old 01-17-2011, 01:51 PM   #4 (permalink)
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I think that's about the going rate at most dealerships. I learned in grad school a long time ago (and believe it to be true today) that a "fair" price is the labor rate paid to the employee times three (i.e. 3 times the employee salary). This is supposed to cover the labor and expenses related to the employee and business and yield a profit. With that said, a company can charge whatever the market will allow them to.
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Old 01-17-2011, 02:10 PM   #5 (permalink)
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that's a smidge high for my area. my independent mechanic charges $80/hr.
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Old 01-17-2011, 02:45 PM   #6 (permalink)
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100 bucks (per flat rate hour) is about the going rate here for a premium repair shop. One should also realize that book flat rate time has nothing to do with actual time spent on a vehicle. A tech gets paid 2 flat rate hours on a "2 hour" job whether it takes him 30 minutes or 4 hours. Some shops also charge a flat amount of time for diagnostics.
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