What's the labor rates in your areas?

[BamaSixGun]

55.00 an hour here at the local Ford Dealer, but hey, I live in Poedunk, AL

 

[bushpilot]

10yrs ago the suburban houston rate for the ford dealer was more than 90 bucks an hour !
and in 2004 when i purchased our SD/350 the rates at the <EXTREMELY RURAL> winchester
virginia shop were 90 bucks !

I think the houston dealers get 130 - 140 an hour now.

tomball ford has a "VARIBLE" labor rate depending on the skill level ??? dont get it
necessarily...im wondering do *I* get to pick the tech when i bring my truck in for
service....hell id want the sr. tech even at the higher rate just in a hope that he
spends less time fixing my truck (saving me labor/time).

tomball ford's labor rate is 100-130 bucks per hour...again depending on the "skill level"

Texan Ford in "rural" katy texas has a labor rate of 104-157 per hour !

Tommy Vaugh Ford <not so rural> houston - is 95 (gas) or 99 (diesel) per hour...flat, no
varible rate based on the phase of the moon etc !

 

[johndeerebones]

10yrs ago the suburban houston rate for the ford dealer was more than 90 bucks an hour !
and in 2004 when i purchased our SD/350 the rates at the <EXTREMELY RURAL> winchester
virginia shop were 90 bucks !

I think the houston dealers get 130 - 140 an hour now.

tomball ford has a "VARIBLE" labor rate depending on the skill level ??? dont get it
necessarily...im wondering do *I* get to pick the tech when i bring my truck in for
service....hell id want the sr. tech even at the higher rate just in a hope that he
spends less time fixing my truck (saving me labor/time).

tomball ford's labor rate is 100-130 bucks per hour...again depending on the "skill level"

Texan Ford in "rural" katy texas has a labor rate of 104-157 per hour !

Tommy Vaugh Ford <not so rural> houston - is 95 (gas) or 99 (diesel) per hour...flat, no
varible rate based on the phase of the moon etc !

Wow, the varible rate thing is absolutely the most absurd thing I've ever heard. That would put in the customers mind that if the business doesn't even trust him as much as the next guy why should I? The dumbest thing I've ever heard. Now the gas, or diesel variation to me makes perfect sense. Different investment levels for the techs to do their job would be one reason for that I think, among many.

 

[rickh]

You are focusing to much on how much to charge per hour.
Blend that with a way to make you stand out. Customer SERVICE.
What can you do to make your shop different, make people want to seek you out, tell others about the great service/experience they had by hiring you.
Now if you are just going to do oil changes and vacuum floor mats, focus on the cost, but full service, you have to be able to give people a reason to try you and keep coming back.
From my perspective, you would go broke waiting on me (as with most of us here, we are die hard do it ourselfers). Having said that, I have used a Ford Dealer in the past and do you know why?, because they had an identified Powerstroke Tech and I really liked the Service Manager. Ever been in a dealers shop and met a Service Manager that was not always swamped? Well no matter how busy he was, I was the one he focused on when I was there or called him. I had no problem paying the posted labor rates, which right now I think are around 125 bucks.
There also has to be enough money made to cover the cost of providing the best customer service, and if people feel like they are getting the best, they will pay it, what ever you charge.
Customer Service is not easy to pin down, but when you have it you'll know.
Something as simple as suckers/balloons for the kids, key chains, CLEAN BATH ROOMS and a spotless shop. Why do you think Dealers seem to always be remodeling and spend tons of money on advertising? Where does that money come from, not from selling cars! From the shop!
Also consider streams of income, it you open a "Ford Powerstroke" service shop you will starve, open a full service repair shop, and that will open more streams of income. Towing is a stream of income. You get the idea. THINK OUTSIDE THE BOX.
The ASE certs mean something to me and you because we know what they are, to tell you the truth most do not have a clue. You normally have to promote that and educate people. Certifications are a good selling tool.
Make people feel good about what they are getting, give them what they think they are paying for and then just a little more... you can charge what want and they will come.
And in the end, you can not and will not please absolutely everyone! Just a fact of life.
Are your ready for a 48 hour work week of wrenching and another 40 of running a business? That question has to be answered by all those effected ie the family.
Just the PT stuff I do drives me nuts, I am sitting here right now printing CD's and burning copies of the software I sell, make great extra money, but sometimes it is frustrating like when someone who is computer illiterate just can not get it to work on their computer, when I sense the frustration coming on even after spending an hour on the phone with them, I simply refund their money, at least we parted in good terms and they can not say my customer service or business practices were crap!
In closing (Sorry for the long post, you struck a cord with me! 10 years ago I looked at the same thing you are looking at, never went through with the business plan though) ,
Is there a program in your area that offers free consultation even just for the legal stuff, permits, tax ID and so on. I can not recall the name of the program but it was run by retired CEO's and Presidents and they focused on assisting small business owners, even helping to apply for the SBA loans.
You will notice I never did recommend an hourly rate, not just because it is regional and what it is around here is not the same as 100 miles away, it is because there are too many variables that need to go into the equation and those variables must come from with in you.
Best of luck my friend and seek experienced advice!
Rick H...

 

[johndeerebones]

You are focusing to much on how much to charge per hour.
Blend that with a way to make you stand out. Customer SERVICE.
What can you do to make your shop different, make people want to seek you out, tell others about the great service/experience they had by hiring you.
Now if you are just going to do oil changes and vacuum floor mats, focus on the cost, but full service, you have to be able to give people a reason to try you and keep coming back.
From my perspective, you would go broke waiting on me (as with most of us here, we are die hard do it ourselfers). Having said that, I have used a Ford Dealer in the past and do you know why?, because they had an identified Powerstroke Tech and I really liked the Service Manager. Ever been in a dealers shop and met a Service Manager that was not always swamped? Well no matter how busy he was, I was the one he focused on when I was there or called him. I had no problem paying the posted labor rates, which right now I think are around 125 bucks.
There also has to be enough money made to cover the cost of providing the best customer service, and if people feel like they are getting the best, they will pay it, what ever you charge.
Customer Service is not easy to pin down, but when you have it you'll know.
Something as simple as suckers/balloons for the kids, key chains, CLEAN BATH ROOMS and a spotless shop. Why do you think Dealers seem to always be remodeling and spend tons of money on advertising? Where does that money come from, not from selling cars! From the shop!
Also consider streams of income, it you open a "Ford Powerstroke" service shop you will starve, open a full service repair shop, and that will open more streams of income. Towing is a stream of income. You get the idea. THINK OUTSIDE THE BOX.
The ASE certs mean something to me and you because we know what they are, to tell you the truth most do not have a clue. You normally have to promote that and educate people. Certifications are a good selling tool.
Make people feel good about what they are getting, give them what they think they are paying for and then just a little more... you can charge what want and they will come.
And in the end, you can not and will not please absolutely everyone! Just a fact of life.
Are your ready for a 48 hour work week of wrenching and another 40 of running a business? That question has to be answered by all those effected ie the family.
Just the PT stuff I do drives me nuts, I am sitting here right now printing CD's and burning copies of the software I sell, make great extra money, but sometimes it is frustrating like when someone who is computer illiterate just can not get it to work on their computer, when I sense the frustration coming on even after spending an hour on the phone with them, I simply refund their money, at least we parted in good terms and they can not say my customer service or business practices were crap!
In closing (Sorry for the long post, you struck a cord with me! 10 years ago I looked at the same thing you are looking at, never went through with the business plan though) ,
Is there a program in your area that offers free consultation even just for the legal stuff, permits, tax ID and so on. I can not recall the name of the program but it was run by retired CEO's and Presidents and they focused on assisting small business owners, even helping to apply for the SBA loans.
You will notice I never did recommend an hourly rate, not just because it is regional and what it is around here is not the same as 100 miles away, it is because there are too many variables that need to go into the equation and those variables must come from with in you.
Best of luck my friend and seek experienced advice!
Rick H...

Rick, I wish you lived closer, you are the kind of guy I would want to partner with. I am not focusing on labor rate, just feel I need a concensus standpoint on what is fair. I was a service manager for going on 3 years, I left, I didn't get the can, I now work in the same shop again, only as a tech. I left because my hands were tied and if I cannot accel at what I'm doing I will walk away and do something else. The higher ups wouldn't give me the reigns in the shop, so I said see ya. I will not be expected to make a profitable shop when someone else is saying well, we will ask you why were not making money, but we'll make the rules....what the heck. I was a tech, then a sm, then a tech again. I know the profitability of the shop like the back of my hand, I just have very limited knowledge in the ownership role. My wife is a business and banking a finance major, but she works for the state at the prison, so there is no way she is leaving to do this with me. I won't allow it, her benefits are excellent, and she carries the insurance. A spotless shop and customer service is top on my list, VERY top. I do not want a flunky shop. If I have to pay to get good techs I will. That is the major problem with the independents around here, there help sucks. But, they expect professional help and an entry wage. If it takes the same hourly rate I'm making to get a good tech so be it. But I will not hesitate to fire someone who doesn't produce, that is also a problem with other shops. Good techs like myself don't even want to be associated with a flunky shop, so they leave.... FIRST rate all the way. I want every customer to leave screaming to there buddies how good the service and the work was....

I printed your reply. Dang, the more I read, the more I agree. How old are you anyway? I have alot more work ethics and service mentality than 98 percent of those in my generation, I tend to agree with people 15 to 20 years my senior.....

Our state actually has grant programs, for upstarting small business owners, even more sore for those with out a college degree. I have a technical school certificate, but they don't care if it isn't college. They also have counseling for the same.....
Thanks for the best wishes bud...

 

[rickh]

Rick, I wish you lived closer, you are the kind of guy I would want to partner with. I am not focusing on labor rate, just feel I need a concensus standpoint on what is fair. I was a service manager for going on 3 years, I left, I didn't get the can, I now work in the same shop again, only as a tech. I left because my hands were tied and if I cannot accel at what I'm doing I will walk away and do something else. The higher ups wouldn't give me the reigns in the shop, so I said see ya. I will not be expected to make a profitable shop when someone else is saying well, we will ask you why were not making money, but we'll make the rules....what the heck. I was a tech, then a sm, then a tech again. I know the profitability of the shop like the back of my hand, I just have very limited knowledge in the ownership role. My wife is a business and banking a finance major, but she works for the state at the prison, so there is no way she is leaving to do this with me. I won't allow it, her benefits are excellent, and she carries the insurance. A spotless shop and customer service is top on my list, VERY top. I do not want a flunky shop. If I have to pay to get good techs I will. That is the major problem with the independents around here, there help sucks. But, they expect professional help and an entry wage. If it takes the same hourly rate I'm making to get a good tech so be it. But I will not hesitate to fire someone who doesn't produce, that is also a problem with other shops. Good techs like myself don't even want to be associated with a flunky shop, so they leave.... FIRST rate all the way. I want every customer to leave screaming to there buddies how good the service and the work was....

I printed your reply. Dang, the more I read, the more I agree. How old are you anyway? I have alot more work ethics and service mentality than 98 percent of those in my generation, I tend to agree with people 15 to 20 years my senior.....

Our state actually has grant programs, for upstarting small business owners, even more sore for those with out a college degree. I have a technical school certificate, but they don't care if it isn't college. They also have counseling for the same.....
Thanks for the best wishes bud...

"The Other Side of 50" (by just a little)
I know the area you live in, I am from Sullivan MO and my Sister actually lives in Farmington.
I have not been down that way in years, we used to go down and play on the chat dumps but that was a loooong time ago!
You are at some what of a disadvantage as for as economics in that area as compared to a large metropolitan area. Nothing wrong with living in an ag/small town, I prefer it as long as I can drive to a larger city to get a decent job.
I understand the Security thing, benefits are worth a lot these days.
Your headed in the right direction. Remember partners can kill the whole thing!
Study it hard and again, seek experienced advice!
And mine is, don't give it away! I still have a problem with that!
Yesterday I held a Biodiesel seminar at no charge, 20 people attended. I fed them and provided the drinks!!
Just tonight I sent one of my repeat customers a free upgrade copy of my software, but then in the end its a cheap investment to keep him as a repeat customer.
Wonder if the Community College has a course about starting a business.
Oh, my real job is as a School District Maintenance Department Director. Ha, try making Principals and Teachers happy! and all those darn kids, they could tear up a Sherman Tank!
Well due to my age, I have to go to bed now!
Rick H...

 

[Scooter]

Rick, the program you are talking about is SCORE. It is an excellent program, and there are many minds there that have a ton of golden bits of information that can only be learned by experience.

And yes, cleanliness goes a long way.

 

[rickh]

Rick, the program you are talking about is SCORE. It is an excellent program, and there are many minds there that have a ton of golden bits of information that can only be learned by experience.

And yes, cleanliness goes a long way.

Yep thats it! SCORE.
something something Of Retired Executives. They have a web site, SCORE.org.
Rick H...

 

[johndeerebones]

Rick, the program you are talking about is SCORE. It is an excellent program, and there are many minds there that have a ton of golden bits of information that can only be learned by experience.

And yes, cleanliness goes a long way.

Yep, just looked around there earlier today On your job, Farmington had a man dept director job open up a couple years back, I checked into it, but back then I thought "the pay sucks." Looking at it now, I could have done that and done my own shop on the side....
o well hindsights like thay say, 20/20.

 

[johndeerebones]

Well, looked at another shop today for 90k. It is six bay, metal truss, some insulatioin, has metal inside to 8 ft, a bathroom, and has power and water, but both are just there, need ran. It is atleas two bays deep from the doors, maybe 3. I would have to partition it to be able to afford to heat the dang thing. The garage doors have no insulation, so that would have to be attended too. Trying to get same guy to seperate another shop, 2 bay, 30x50, but it was listed a year or so ago for only 40k. It is insulated, plumbed, has a working bath, concrete thick enough for a 10k lift to go right in....I hope hell seperate it. Has 3 lots behind it for sale at 3500 each. I told him if I went and looked at the building again and wanted it for sure I would by the 3 lots also. So maybe he will detach it if he can sell his 3 lots too.....I HOPE. I could get a working shop going for 70 - 80k for that. At today's interest rates that is very little overhead as far as the building is concerned..... That makes it very attractive. I don't want to start my business .5 million in debt know what I mean?