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With labor rates going up, one concept me also need to consider is multi tier labor rates. For example, performing jobs on heavy trucks is different than work on a Honda Civic, or Toyota Corolla. Also, if you do complicated computer work, electrical and driveability, that requires your top tech with the most expensive tools and training. And those jobs have no part profit. Shouldn't this be billed at a higher labor rate? Do you have a tier labor rate strategy? I would like to hear from other shops.

Repair shops that have done the math, know what their labor rate needs to be. However, are they leaving money on the table when performing some jobs, such as complicated driveability, electrical work, and other computer-related work? Shouldn't we base the labor rate on certain jobs by the technicians that are assigned to those jobs? In other words, if you have a drivability / electrical tech that is also the highest paid in your shop, shouldn't the jobs he or she performs be billed at a labor rate based on his/her pay scale?