Labor Rate

[jenm]

We are looking into increasing our Labor Rate. We are in a rural area w/approx. 20,000 people. We are also the only Ford dealership in our county. What would you suggest for an hourly Labor Rate?? (Customer Pay)

[fburrows]

Jenm:

Labor rates are really a local issue. You need to spend a couple of hours calling other makes as well as your competitors and doing a survey. The same thing goes for competitive service operations. It really does not matter what someone in another part of the country is charging since your customers arent shopping there.

If possible do it yourself and actually visit these people. I remember that GM made us do this a long time ago for Service Supremacy. It was a great educational process and you will learn a lot about your competitors.


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Frank Burrows
fburrows@absdata.com

[robc]

I am going to take a shot in the dark and just throw out what I would guess. Having lived in Michigan, I kind of know the area you are in and figuring your average tech rate is in the $18-$20/hour range - I am going to say $65.

But as with most I always lean to the Oreo cookie method of pricing - be the white frosting in the middle - for a minimum target. Where is Dean Arbour or Classic at?

== Rob ==

[Flash_John]

my boss always says labor rate =hourly cost of sale + expense per flat rate hour + desired net per hour.