[NoVa-Corvairs] How do repair shops devine what to charge you?

[Daniel Goldberg]

The following is an email thread from the Senior Six Registry (BMW Bavaria) email list.  The respondant, Marty Roach, is a BMW NA customer service exec.

> From: scott rootenberg <footsie80 at yahoo.com>
> To: gopostal at seniorsix.org
> Subject: "the book" repair pricing
> Date: Tue, 7 Mar 2006 19:25:32 -0800 (PST)
> 
> Today I took my car in to my usual shop for repair
> work.  Didn't receive a firm estimate, didn't care.
> Waited in waiting room; job took approx. 2.75 hours
> tops, was charged for 4 hours.  Questioned this and
> was told that The Book said the job would actually
> take longer than 4 hours so they were cutting me a
> deal.  Was also told the two part job I had done was
> more of a thing to be billed by a "job rate" than a
> strictly hourly rate.
> 
> I like the shop but this doesn't sit well with me.  A
> relative told me for better or worse this is normal
> for repair shops and their labor charges.  How should
> I feel about all this?  No lectures please on DIY
> work; don't have the time or room or tools or
> knowledge...
> 
> Scott
> 1974 3.0S
> SSR #314

> ----- Original Message -----
> From: "Marty Roach" <martye9e12 at hotmail.com>
> To: footsie80 at yahoo.com, gopostal at seniorsix.org
> Subject: RE: "the book" repair pricing // flat rate
> Date: Tue, 07 Mar 2006 23:22:59 -0500
> 
> 
> Scott:
> 
> Shops live (or die) by their ability to sell their time.
> 
> A). "flat rate" - a calcluated time measure based (theoretically) on the 
> average time to complete a specific task 3-5 different times by a master 
> certified tech.Flat rate will include a certain amount of time for diagnosis. 
> "The Book" is probably a compilation of info from OEM Warranty Flat Rates. OEM 
> flat rates for warranty reimbursement are not typically generous so shops 
> often use the following for customer pay.....
> 
> B). Matrix (or multiplier): adding X% to the flat rate: 1.1, 1.2, 1.25, 1.4, 
> 1.5, 2, etc. It all depends on the shop. In some shops, older/unfamiliar cars 
> will have a higher multiliplier since the damn things
> almost always have other problems that arise during the repair - bolts strip, 
> snap off, prior repairs done to a poor standard, and so on.
> 
> Frequent customers will get lower multipliers, lower mark up on parts, free 
> labor, etc.
> 
> Many repair shops will eventually realize how little money they actually make 
> and will create a break-even analysis, or, better yet, a profit calculation 
> based on their historical data - overhead, labor, shop supplies, utilities, 
> and so on.
> 
> Some shop management systems will allow you input variables for desired profit 
> % per job, labor matrix, parts mark-up, and the specific tech's labor rate. 
> The efficiency of a tech can also be added into the mix, based on historical 
> data - labor hours charged versus actual hours on the job.
> 
> Shops make a killing on some repairs, and literally lose their asses on 
> others. In most cases
> diagnosis will be billed separately on straight punched time.
> 
> Virtually nobody works off of Actual Hours. Most really good techs want to 
> work on Flat Rate.
> Your tech was paid for 4 hours, finished early, and started to work on another 
> job, or, he had no job waiting and sat around doing nothing (earning nothing).
> 
> Acquiring the tools to do you own work can be expensive. Developing the skills 
> to do your own work
> can take many many hours of studying (and practice).
> 
> You almost always get what you pay for.
> 
> MAR
> 
> 
> 
> 
> 
> 
> 

> 
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