Yep..the old flat rate system. A tech payment system that is decades behind the technology. It is the reason I left the business years ago. If your smart and enjoy problem solving..dispatch will give you all the odd-ball intermittent electrical or driveablity problems. You lose time and money. Dispatch will try and help with some "gravy" easy pay jobs..and your fellow techs will cry and complain. It is awful.
I always thought the techs should be paid a salary, with a productivity bonus. Of course this would require the service manager to actually manage and monitor individual tech productivity. Too much work for most.
Auto service is a high profit center in most dealers and independent shops. Maximizing the profit and putting most of the productivity loss/profit incentives on the tech (with many thousands of dollars personally invested in tools) to keep it that way.
The example of the starter replacement on a Toyota Corolla..would you do that job at home in your garage for $22? I wouldn't. Remember too the customer probably paid $110 to $150 (labor rates around here are $100 per hour and more) for labor for that starter install..pretty big spread in cost vs sale price.
I always thought the techs should be paid a salary, with a productivity bonus. Of course this would require the service manager to actually manage and monitor individual tech productivity. Too much work for most.
Auto service is a high profit center in most dealers and independent shops. Maximizing the profit and putting most of the productivity loss/profit incentives on the tech (with many thousands of dollars personally invested in tools) to keep it that way.
The example of the starter replacement on a Toyota Corolla..would you do that job at home in your garage for $22? I wouldn't. Remember too the customer probably paid $110 to $150 (labor rates around here are $100 per hour and more) for labor for that starter install..pretty big spread in cost vs sale price.