Auto aftermarket service and repair shops are charging at least $100 an hour less than they should have, according to recent industry experts.
A recent report from AutoLeap, a store management software company, found that the average store surveyed charges $120 per hour in labor costs, and this number varies by store type.of Current state of the auto repair industry It turns out that the franchise costs $112 per hour, while the specialty stores cost $179 per hour. Independent shops charge $110 per hour.
“We’re at least $100 less an hour compared to other professional deals. It’s killing us. Hosted webinars.
“We’re not paying enough, so we’re not keeping new tech people in the business, we’re not attracting new talent to the business, and we’re not making enough profit, etc.” He added: “We have to raise labor rates in our industry. And they’re going to do business, you’re not going to do business — end of sentence.”
Chris Cotton, owner of AutoFix-Auto Shop Coaching, agrees. He pointed to other skilled deals that charge far more without the overhead and ever-changing knowledge base that auto service providers have.
“There’s no new technology or plumbing that I know of in the last few years,” he said. “There is no new technology in electricity, and we are dealing with electric and hybrid vehicles.”
Bullard said his plumbers are billed $250 an hour. His electrician he comes for $300. “And they don’t have the tools or knowledge level I need to work on cars today. It’s insane not to make $250 an hour.” [on] I’m average now,” he lamented.
Cotton advised the audience to look at the bills the next time they needed a plumber. They apparently paid the artisan plumber he $250 an hour and the apprentice another $130 an hour. “And the apprentice is the one who did all the work,” said Cotton. Watched, trained, coached. And everyone is OK with it.
He had one simple message regarding raising labor rates. Stop thinking about it and just do it. ”