Why is There a Variance in Shop Labour Rates?

Why is There a Variance in Shop Labour Rates?

When comparing labour rates at a repair facility, many people believe that a cheaper hourly rate equates to a lower cost.  This is equivalent to the idea that a cooked burger made with regular ground beef will weigh the same as one made with lean ground beef.

A pound is not a pound.  One contains 30% fat while the other contains only 17%.

It’s the same with shop rates, it’s not equal.  You need to evaluate the overall cost to have a repair done.  That is, you may think that you’re paying $ 70/hour and think this is a good deal, although not if it takes you twice as many hours.  When comparing repairs between shops, in nine out of ten cases, the higher labour rate will end up resulting in a lower overall repair bill.

That’s because a low labour rate is often a marketing gimmick.  Furthermore, a low labour rate means the people working on your equipment are getting paid less.  This usually equates to having less experience, skipping necessary work or taking short-cuts.

With a tight labour market, all service providers need to provide competitive compensation to attract and retain qualified technicians.

A reputable company will want to get you in and out as fast as possible to minimize your down-time.  Often a low initial labour rate means that you’ll be waiting longer for your vehicle to be fixed.  It’s not about one and done, a reliable service provider wants repeat business and knows that this is only possible by getting vehicles in-and-out and reducing the overall maintenance costs.

At K.I.D. we believe in fair market value for good service.  We don’t bait you with a low initial labour rate that ultimately results in a higher overall repair cost.  We stand behind the work that we do and get you in out as quickly as possible.  We utilize heavy duty shop management software, which means that your estimates are pre-approved and tracked.  You have full visibility to the work that is done and exactly how long it takes.  It also means that the service history of your fleet is tracked so you have full transparency to any work that has been previously done.

Next time you’re enticed by a low hourly rate, remember the difference in ground beef.  One pound of lean ground beef generates three cups of cooked versus one pound of regular that nets one and half cups of cooked product.

 

 

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One Response to “Why is There a Variance in Shop Labour Rates?”

  1. I like that you said that a reputable company would take care of you faster and provide you better services. My friend’s truck is going to require a new alternator. I’m going to check online for a good repair shop to take his truck.

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