You bring your car into your favorite shop for a diagnosis, you are handed an estimate, and the air goes out of the room…How could a simple repair cost so much? People ask all the time how the price of a particular is determined, usually phrased something like, "Holy cow! Why does it cost so darned much?" (usually using language quite a bit more colorful). This question is a good one, and is one that you should ask whenever it isn't clear to you.
There are two components to a repair bill:
· The first is the labor rate, or what the shop charges for the time that goes into repairing your vehicle.
· The second is for the parts themselves, and whatever other shop support materials are used in the process of the repair.
Understanding Labor Charges
When you see a line item for "labor" on your repair estimate or bill, there are two elements that go into it. The first is the shop's per-hour labor rate. The second is "book time."
A shop's labor rate is the hourly rate it charges for work. The term "book time" refers to the average amount of time it takes to perform a particular job. This "book time" number is based on how long it takes a factory mechanic to do the job. The mechanic tries to complete the job within the "book time" although repairs typically take longer than "book time".
Shop labor rates vary with the geographic area of the country and are competitive within a particular area. Labor rates typically run $80-$180 per hour nationwide.
Parts And SuppliesParts
Yes, Virginia, auto repair shops "mark up" the price of parts. They do so by buying parts at wholesale price, and selling the parts at retail price. The markup varies, based upon the parts in question, but a markup of 30% - 50% is not unusual. This markup allows the auto repair shop to warrant the parts and labor on any particular job. This is an advantage over bringing your own parts to an auto repair shop, as, if the part is defective, you will typically have to pay labor charges to remove the defective part to where it was purchased, and pay labor charges to install the replacement part.
The type of parts used for auto repair directly affects the bottom-line price. There are three basic classes of parts: Original equipment Manufacture parts, after market parts, and used parts.
Yes, Virginia, auto repair shops "mark up" the price of parts. They do so by buying parts at wholesale price, and selling the parts at retail price. The markup varies, based upon the parts in question, but a markup of 30% - 50% is not unusual. This markup allows the auto repair shop to warrant the parts and labor on any particular job. This is an advantage over bringing your own parts to an auto repair shop, as, if the part is defective, you will typically have to pay labor charges to remove the defective part to where it was purchased, and pay labor charges to install the replacement part.
The type of parts used for auto repair directly affects the bottom-line price. There are three basic classes of parts: Original equipment Manufacture parts, after market parts, and used parts.
Original Equipment Manufacturer (OEM) parts tend to be the highest priced, followed by "after market" parts, which are cheaper than OEM parts. After market parts come in various quality levels. A general rule of thumb is that the cheaper an after market part is, the lower the quality.
We typically use OEM and "top of the line" aftermarket parts to increase the likelihood of a longer lasting, auto repair.
Used parts also vary in price depending on the condition and/or demand for the part. We use used parts that are in good condition to repair older vehicles, or where it makes sense to do so. We always inform our customers when we use used parts.
Used parts also vary in price depending on the condition and/or demand for the part. We use used parts that are in good condition to repair older vehicles, or where it makes sense to do so. We always inform our customers when we use used parts.
Supplies
Supplies are the products or services used by auto repair shops to make your repair. Examples of Supplies include: brake cleaning solvent, coolant, windshield wiper fluid, nuts and bolts, wire, tape and other such stuff. All repair shops add a "shop fee" charge of between 5% and 7% of the subtotal (labor and parts) to cover the expense of these Supplies. We charge a "shop fee" of 5%.
Supplies are the products or services used by auto repair shops to make your repair. Examples of Supplies include: brake cleaning solvent, coolant, windshield wiper fluid, nuts and bolts, wire, tape and other such stuff. All repair shops add a "shop fee" charge of between 5% and 7% of the subtotal (labor and parts) to cover the expense of these Supplies. We charge a "shop fee" of 5%.
Where Does the Money Go? Or, Why There Aren't Many Millionaire Auto Repair Shop Owners…
What's not often explained to the consumer are the costs of running a shop, which can be pricy. Regardless of size, a shop has expenses that have to be paid by the work generated. The obvious expenses are rent, electricity, heat and other utilities.
In addition, there are substantial costs for equipment and technology. In order to work on today's cars a shop must have state-of-the-art scanners, diagnostic software, and lab scopes to analyze vehicular data streams in an effort to extract critical information for accurate vehicle repair. Today's scanners can cost more than $35,000, but without such tools, mechanics cannot deliver accurate diagnoses. Other equipment such as vehicle lifts, floor jacks, lubrication equipment and the likes are necessary to operate a shop efficiently and effectively.
Good trained mechanics cost money. In order to attract a high-grade mechanic these days, shops have to pay a good hourly rate or weekly salary. Mechanics, in turn, have to go to school on a regular basis to keep up with new automotive technology. A repair shop usually pays for this training.
What's not often explained to the consumer are the costs of running a shop, which can be pricy. Regardless of size, a shop has expenses that have to be paid by the work generated. The obvious expenses are rent, electricity, heat and other utilities.
In addition, there are substantial costs for equipment and technology. In order to work on today's cars a shop must have state-of-the-art scanners, diagnostic software, and lab scopes to analyze vehicular data streams in an effort to extract critical information for accurate vehicle repair. Today's scanners can cost more than $35,000, but without such tools, mechanics cannot deliver accurate diagnoses. Other equipment such as vehicle lifts, floor jacks, lubrication equipment and the likes are necessary to operate a shop efficiently and effectively.
Good trained mechanics cost money. In order to attract a high-grade mechanic these days, shops have to pay a good hourly rate or weekly salary. Mechanics, in turn, have to go to school on a regular basis to keep up with new automotive technology. A repair shop usually pays for this training.
I think one must go to their favorite Automotive Repairs Vancouver shop for maintenance and repair of their vehicle.
ReplyDeleteSo true! Quality parts and honest labor are worth it, but comparing quotes always helps.
ReplyDelete