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Labor Times for Auto Repair Shops

Your shop makes profits from bothu00a0partsu00a0and labor. Adjusting your pricing on parts to make a profit is pretty straightforward. But labor times for auto repair shops? Thatu2019s where things get a bit tricky.

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Labor Times for Auto Repair Shops

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  1. Labor Times for Auto Repair Shops

  2. Your shop makes profits from both parts and labor. Adjusting your pricing on parts to make a profit is pretty straightforward. But labor times for auto repair shops? That’s where things get a bit tricky. • In order to keep your lights on and keep your technicians happy, you need competitive labor rates (you know what they say: “happy techs, happy shop”). But, of course, you also need to keep those rates reasonable so you don’t scare off your customers with sky-high prices.There are three ways your shop can make more money on labor: • By using a labor matrix • By creating custom labor rates • By applying a labor guide markup

  3. What is a Labor Guide? As you already know, a labor guide is the backdrop of labor times for auto repair shops. It tells you how long, on average, it takes to complete different types of jobs. But, remember that the times listed in labor guides are averages, so it’s best to treat them as a starting point; there are details that can affect the accuracy of those times.

  4. Average Time of Job We all know that longer jobs create a greater likelihood of complications. Your technician is tasked with replacing an engine, and after they open the hood, they realize that the connecting parts need an upgrade, too. To offset repair work that wasn’t included in the original estimate, you can charge customers more for all jobs over a certain amount of hours.

  5. Age of Vehicle Wine gets better with age, but cars do not. Older vehicles are often trickier to fix, especially because finding parts for them can require a time-consuming, pain-staking hunt across all the parts shops in town. You can make up for the time spent hunting down uncommon parts by charging more for all repairs involving older vehicles.

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