Labor matrix - legal?

[Art_Mopar]

The State of PA also sends a mixed signal as far as rates go. You have to post a rate but can charge a "flat rate per job" fee (parts and labor inclusive)as long as the customer authorizes the amount before doing the job. I have run my shop both ways, grid and no grid. I am not currently using a grid, nor do I engage in price wars with the local independents. I fell into the "discount service to compete trap" a couple of years ago and will NEVER go down that road again. I have factory trained Technicians, factory approved parts, factory approved equipment, etc. One thing the aftermarket has done a GREAT JOB of is convincing the ordinary consumer that Dealers are higher priced. That being said if the customer truly believes that and still comes to us it must be for a reason. We get new customers every day from other Dealers and the complaint is hardly ever about the price it is the poor quality of the work. The customers we take from the independents have 2 complaints, poor quality of work, and the price was HIGHER than ours! I don't do 19.95 oil changes anymore, I don't chase the old timers who come in to pick rocks out of their tire treads and ask for a bunch of free services while getting a free tire rotation either. We take great pride in the job that we do, we charge a fair price for the work we do, and we stand behind what we do. If we screw up we admit it and make it right with the customer.

[westover6]

everbody uses matrix pricing in our business. if your maintenance and competitive pricing is not the time x your hourly rate, you are using matrix pricing.

[cantfind122]

Your labor rate posting varies from state to state. However, unbeknowst to alot of folks most states require a labor/warranty rate disclaimer posting that is "visible" to the customer. In the state I am accustomed to (New York) the law is very clear. It also mandates you must distinguish the flat rate schedule to the hourly rate. I.E. It states your charges are based on a flat rate fee which is dictated by an industry standard (eg. Motor, Hayes-Ligon etc) or an hourly fee if it exceeds the flat rate schedule. Just by it's wording it is no mystery this insures a minimum charge but does not preclude a maximum charge. In defense of the concept it is not different than your plumber charging you 75 dollars to show up at your house and show you where the garbage disposal switch is. Both sides are understandable and we all rely on the ability of common sense to guage how to apply a realistic practice.

[Old Irish]

In my state it is not required to post labor rates or billing methods. My understanding---not confirmed, mind you--- is that the state AG got so tired of handling disputes arising from posted labor rates and flat rate billing that they just gave up and said "Don't post anything".

We do have very specific laws regarding written and verbal estimates. Presumably adherence to these regulations is more meaningful and beneficial, and certainly less confusing, to the consumer. IOW, proper estimates trump posted labor rates.

We avoid mentioning labor rates and labor hours and very few customers ever ask.

Cheers
DD