Let's Talk About Labor Rates

I've heard many times in the past, "Wow, your labor rate is expensive!"  So, I thought it would be a good idea to explain a little how auto repair shops decide on a labor rate.  There are MANY different factors that need to be considered.  Auto repair labor rates vary widely across the country, and even within the same city.  You may find labor rates ranging from $47 to $200 per hour.  Though many people think the shops' labor rates are very high, most are actually close to industry averages.  Here are some factors that auto shops, including us, use to establish car repair labor rates:

• Local labor and benefit costs (rural vs urban location)
• Repair shop type (dealership, independent, specialty, etc.)
• Facility Overhead (rent, upkeep, utilities, insurance costs, etc.)
• Business overhead (tools, technician training, equipment, taxes, more insurance costs, etc.)

​I would like to emphasize right off the bat that a mechanic does not receive the hourly labor rate you are quoted.  That rate reflects his/her pay plus a portion of the facility's business expenses.  Running an auto repair shop today is a costly undertaking. Along with the cost of the physical facility, the high-tech diagnostic tools and equipment needed to service modern vehicles can easily require a six-figure investment and constant training for the technicians. 
We quote labor charges using a "flat rate" manual or computer program that provides the average time it takes an experienced technician to perform a given car repair.  This system allows us to to give fair and consistent auto repair estimates.  
Since we are a facility that performs a wide range of services, not all can be estimated using the flat-rate system.   Diagnostic work, for example, is a unique troubleshooting process.  We will quote a basic diagnostic charge that includes certain procedures and a maximum time limit.  If the problem cannot be identified within that time, we will contact you, describe what has been done to that point, and ask for more time (more money) to do further diagnosis.  This can be frustrating for both you and us, but there really is no alternative when it comes to complex or intermittent troubles.
We do have some jobs that have a menu price.  Our lube, oil and filter changes, smog inspections, horse power pulls, most minor tune ups, etc.  These will have a set labor price for certain groups of vehicle types.  
I hope this helps to ease your mind about auto repair shops' labor rates.  We are here to help, give us a call anytime if you would like further clarification or if there is anything that we can help you with!

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