Labor time and rate for cooling flush

[homesleym]

Hi Folks

We are redoing our menus and I'd like to get a feel for what you all are charging to power flush the cooling system(s). Right now I'm just looking at GM vehicles. Around here the dealer average appears to be about $90 plus tax to the customer. We are using Winn's products and figure with the flush kit and Dexcool we have about $45 retail in parts; .08 @$50 for labor.
Also, when you all quote pricing to the customer, do you quote a TOTAL price including tax and shop supplies? Are there instances or specific operations where you do not charge shop supplies? (I'm a parts guy so don't hold that against me!) Thanks for your help!!

[This message has been edited by homesleym (edited 01-21-2005).]

[TomD]

Always keep in mind- no matter what you think your service menu price should be in your market(high,Low or in the middle)- YOU MUST MAINTAIN AND CONTROL YOUR GROSS on all the items. You put down .08 @50 hour for Labor..did you mean that or .8hrs? Tom

[homesleym]

Yes .8 was the intent.

[TomD]

Homesleym,
At .8 Hrs @ $50 per hour that means a labor sale of $40.00. If the tech is getting paid .8 Hrs to perform the service you have the following situation:
Tech Rate:
$10 Hr- Pay $8.00 - 80% gross profit-Good!
$15 Hr- Pay $12.00 - 70% gross profit -OK
$20 Hr- Pay $16.00 - 60% gross profit-no good
And it only gets worse the higher up the pay scale. My recommendation is to charge the Customer the $40.00 Labor, but reduce the pay hrs to the techs to lets say, .5 hrs, this then changes the gross to this!
Tech Rate:
$10 Hr- Pay $5.00 - 87.5% gross profit-Super!
$15 Hr- Pay $7.50 - 81.25% Great!
$20 Hr- Pay $10.00 -75% gross profit-Perfect!
The customer amount for labor isn't as important as making sure whatever price you sell service for, you MUST be aware of the gross that your making...This is what impacts the financial statement and the dept. bottom line. Hope this helps, Tom

Also always quote the total with all included--except the Tax!
(the old joke, McDonlds charges for the whole Burger..not the bun, lettuce etc....)

[This message has been edited by TomD (edited 01-24-2005).]

[jazdale]

Tom
Why would you leave out the tax?

If you tell me 88.06 at write-up and the cashier asks for 88.06 - we're good to go.

If the cashier asks for 93.76, then I'll thoroughly scan the RO for the difference.

[TomD]

Jazdale,

What I mean is give the total of your repair and add "plus Tax" You don't want the tax to make your service look "overpriced" just because the Gov needs their share of your business.

Tom