- This topic has 17 replies, 3 voices, and was last updated 1 month, 1 week ago by Lesley Anne Thorne.
November 17, 2020 at 1:51 pm #204024Mike Ruff, GW editorKeymaster
Independent garages are undervaluing their services and failing to cover business costs in their hourly labour rates, a recent study showed. Andy Pars
[See the full post at: Opinion: Know your worth and charge accordingly]December 3, 2020 at 6:53 pm #205178HootersGuest
Couldn’t agree more with the author.
Don’t take this the wrong way, but many of the independent proprietors are damn good mechanics but bad business men.
Have you ever asked yourself why many of the main dealers do not MoT test?December 3, 2020 at 7:06 pm #205185Meat-HeadParticipant
Recently at ‘Meat-Head-Motors’ we had a odd vehicle in
Customer has dragged this thing outta a field, wantted us to
Reweld the roof and floor where the tree was growing. New rad and fan where
Had been peppered by the last farmer owner with 12 bore.
The customer insisted on all this work, BEFORE getting it running.
Turns out its got a bent conrod, cant get one, cant get another engine
The vehicle came from some country which is now under a volcano etc etc
The job was 35 hours worth how do you charge that when guy only
Paid £100 for it!January 15, 2021 at 8:22 am #206731Neil SkuseGuest
We charge £64.00 per hour -work to manufacture service schedules and times. Unless circumstances dictate.
Garages need to charge rates in accordance to their skills and capabilities.
Investment is key-if you don’t invest in training and equipment you are going to struggle in the long term.
Customers come to you for what you can offer and the services you provide.January 15, 2021 at 8:43 am #206733Vikki BrayGuest
So how do Warranty Companies get away with paying out £40 per hour when that is not a realistic cost for doing the job?January 15, 2021 at 9:30 am #206734mr nathanGuest
We charge £65 hour which seems to fit in with the area. But like many dont get paid that from lease work like 1link.January 15, 2021 at 9:46 am #206735Snap OffGuest
“The job was 35 hours worth how do you charge that when guy only
Paid £100 for it!”
Surely that’s the customer’s look out – obviously he was told how much it was going to be, before you started work, why should you be paying for his stupidity?January 15, 2021 at 11:30 am #206736Ian WhitmoreGuest
Totally agree with the author, We do charge what we are worth, especially when we are fixing what others have failed to fix. The sooner certain garages within the industry stop using these 3rd party parasite comparison sites, the better everybody will be, all they do is devalue everybody. Creating a race to the bottom.January 15, 2021 at 12:01 pm #206737DougalGuest
Totally agree with the author.
Vikki :- Because most will accept £40 rather than turn the work away, we just say NO.
Nathan :- We threw 1 Link out 3 years ago and do not regret it.
I am not claiming that the same actions would suit everybody but they worked for us.January 15, 2021 at 12:20 pm #206738Alastair MayneGuest
As an IGA member I read their report on labour times with great interest. I don’t see how anyone can charge book times to carry out work at such low hourly rates and still make a profit (unless they have some other additional ways of boosting their income).January 15, 2021 at 12:33 pm #206739Meat-HeadParticipant
Alastair Mayne:- Well if your an iga member moan about their 0845 number.
All well and good charging what it is worth.
We got one at mhm now, been jumped off backwards, took most of the obslete
Modules with it, Had it running for 7 days then now not starting again
What do you charge!January 15, 2021 at 12:57 pm #206740JoeGuest
Couldn’t agree moreJanuary 15, 2021 at 2:37 pm #206741Spanner ManGuest
I fully agree with the author, our trade lacks professionalism when it comes to charge out rates. it would help if our trade bodies got behind the workshop side of the business but alas most are too busy patting themselves on the back for spurious accolades in sales and administration.
You’ve never herd of a solicitor or an accountant not charging for every hour. So Mr Meat Head charge the 35 hours, it’s not your fault the farmer bought a dead donkey that only cost £100.. . . . We should indeed know our value and charge accordingly. An example for you, a trainee solicitor in a city firm could expect a salary of £26,000 to £28,000 per year, the firm would typically charge the trainee out at £100 to £125.00 per hour and they would expect around 75% productivity. Compare that to our average charge out rates. Sure the trainee had 3 years at Uni’ and 2 year LPC ( competency certificate ) before they started working, but my point is they know their value and charge it without fear or favour and typically they don’t rush to undercut the firm down the street.January 15, 2021 at 3:25 pm #206742dave bevanGuest
I couldn’t agree more, whilst we were not the most expensive in town we certainly weren’t the cheapest, but when we put our labour rate up substantially a few years ago, we noticed our customer base actually increased, we attracted better customers who, whilst wanting value for money just wanted a good job done and decent customer service, and stopped getting the ones that wanted everything for nothing.
This has given us the confidence to say “right, we are very good at what we do, and we will charge for it accordingly”.
We have gone from strength to strength since then, by charging what we’re worth we have been able to attract a better standard of technician, improved our facilities and equipment and now stand proud in our community with an excellent reputation and an ever increasing customer base.
I urge others to do the same, I think you’ll be pleasantly surprised by the results.January 19, 2021 at 8:12 pm #206875R.J. RussellGuest
play 1link at there own game
we only do what they ask for
if they say investigate , we agree a time before we do the job to investigate or simply ask them what to fit
we respond with “dont until investigated ” or ask them to book to a dealer to investigate if they wont pay us
we charge them for late responses as ” ramp time ” just like they charge us
we tell them car is delayed due to failed response times and force them to hire cars for extra days
we now get paid for all investigations and we add ramp tome and get paid if they fail to respond in time
we have made them wait a week for a car stripped on a ramp on purpose because they messed us around stating we dont have time to do it they sent a mobile guy out and we refused him axcess based on on his insurance was unacceptable after making him wait 2 hours for it to checked
dont let them rip you STICK TOGETHERJanuary 21, 2021 at 2:12 pm #206990DougalGuest
The problem is they should really be called :- THE 1 AND ONLY LINK.
Competition drives efficiency, it applies to us but not to them.January 22, 2021 at 7:45 am #firstname.lastname@example.orgParticipant
We decline warranty work-and we don’t do fleet work for less than £48.00 per hour+vat.Not viable to carry out this type of work when there is demand for your workshops services.January 27, 2021 at 8:15 am #207226Lesley Anne ThorneGuest
Absolutely agree with the author. We charge £60.00 per hour, so are not the cheapest around, but we have heavily invested in equipment and training, so I feel it is a fair price for the knowledge we have and the quality of workmanship we deliver.
We don’t bother with one link, or who can fix my car etc…if someone wants a cheap job, you find they will get what they pay for. We have recently started turning down some car sales work, as they try to drive down your prices and you end up being busy fools, being put under time pressure, for less money. We have found that we are busier with private customers, less stressed and making just as much profit, without the pressure and more importantly, without feeling devalued. definately KNOW YOUR WORTH!!