Labor Rates

The reported labor rates ranged from $48-$109 per hour.

Good gracious ... I cannot even imagine staying open at $48/hr. Even in a garage behind my house. How do these shops stay in business?

For the record, we called every shop in town before opening. Made a massive spreadsheet of labor rates by neighborhood. Then, set ours at the mid to upper side of that curve. $109.99/hr. This also allows us to hit 70% margin on labor.

Guys, be careful about discussing this in too much depth on a forum like this. FTC is always looking for what they believe is

collusion to fix prices.

Guys, be careful about discussing this in too much depth on a forum like this. FTC is always looking for what they believe is

collusion to fix prices.

We are discussing going open market prices for labor in areas all across the United States.

Just letting you know. All it takes is for a group to discuss it for the FTC to launch an investigation. BTW, insurance companies are exempt from price fixing by law.

We are discussing going open market prices for labor in areas all across the United States.

Only on custom work, some sublets, and non-insurance related jobs are there reasonable margins possible for auto body shops.

As for aftermarket automotive repair ...

...for example, our shop labor rate is dependant on different factors that are easily understandable and by differentiation of jobs by risk factor of employee and vehicle, intelligence and ability required, value of vehicles (classics, customs, exotics), and equipment necessary to do a job. On a bare basic example, a shop down the road charges $10.00 per each wheel/tire to balance each wheel/tire. We get paid $35.00 each to balance each tire plus $1.00 each per ounce of weights used. Does not include mounting.

Another example, our basic general labor price is $125.00 per hour on general labor, a shop down the block is $84.00 an hour for general labor and even another claims that they are $65.00 for general labor.

The Volvo dealer 6 miles away is $160.00 per labor hour. The local Mercedes dealer is over $200.00 per hour in labor.

On our exotic end we have been as high as $325.00 per hour for labor, depending on the value of the vehicle, the exclusivity of the client and what exactly they want, the time of operations (sometimes I have to start a job at 1:00 am with no hassles, distractions, etc.), equipment procured, and the supplemental insurance required.

This above is open market pricing.

If the industry goes regulation bound, as in not open market pricing the restrictive nature of producing an income will produce a lower class of technician with lower quality workmanship. The technicians in this industry are already too underpaid because of a cut throat fear based labor pricing system.

With a low paid industry you typically attract low educated individuals who do not have the IQ or aptitude to produce good quality products.

If your not to certain about this, go to your local fast food establishment and see if you can find highly intelligent/skillful people working long term at these low wage operations.

Basically highly intelligent/skilful employees do not equate low paying labor jobs as a long term solution for survival for themselves or their families regardless of how good the working conditions may be. The uneducated but willing though are thankful to have jobs and will work for their money(lower income) but lack the education to produce high quality products. That does not mean they are hopeless, but initially they are productive on very low levels. They are laborers not technicians.

Then the cycle begins:

They are laborers and not technicians unless you highly train them into professionals.

Then these laborers turned professionals, knowing their increased value and rightfully deserving to be paid more, look for raises or higher paying jobs. If the business can afford to pay the raises and higher salaries it will attract and retain professionals. If it cannot, due to low labor rates, regulations, and/or inefficiencies, that shop or industry is doomed to a low level survival potential or failure for the company and its staff.

And the cycle starts all over again.

_______________________________________

There is prosperity where there is knowledge and ability, but there is no hope where ignorance of facts exist.

For basic financial prosperity: Income must be greater than expenses.

Expenses × 5 = MINIMUM Income necessary for security.

If your customer thinks your worth it than charge ALL YOU CAN FOR YOUR BEST WORK EVERY TIME!

Well I'm located in Miami, Fl. I cannot vouche for TC's experience. Here in Miami competition is fierce. Ppl care not how good your are, rather where it can be done the cheapest. Most shops here are in the range of 70-80/hr. My rate is 85.00 and that is only because I specialize on Euros, and many other Euro shops fall in that range. About the only elevated fee I have is a 120.00 diagnostic fee. This is because I have OEM scan tools and have access to certain systems, and certain features some aftermarket tools do not on these vehicles. I charge my fee and guarantee that what I say the issue is, will be the fix. Outside of that, my rate is on par with every other shop in the area. A 100/hr rate won't get you too much business here.

I'm a couple hours from Mario, and my labor rate is $70, thats on the upper end of the independent scale in my area.