Auto Technician Compensation
- Thread starter The Critic
- Start date
I would expect a highly skilled mechanic at a high end shop to be making at least $100k a year. What the shop charges for labor is irrelevant for this discussion. $150k a year seems like a lot but maybe not if the shop is in an affluent area, has done the calculations and can afford it. And that position is for a shop foreman and Master Mechanic level person.
JHZR2
Staff member
A reasonable rule of thumb would be that the burdened rate of labor would be 2x the pay rate. If not higher. This covers all the overhead, G&A, some profit, etc.
Of course these things vary wildly, and a dealer may be paying for loss leader cars and donuts, a fancy euro shop for their owner’s Porsche… who knows.
It’s like any other trade. When the roofer rolls up in a jacked up, souped up truck, wearing a nice new Rolex, I don’t assume they’re good. I assume they’re skilled at squeezing excess profits.
Of course these things vary wildly, and a dealer may be paying for loss leader cars and donuts, a fancy euro shop for their owner’s Porsche… who knows.
It’s like any other trade. When the roofer rolls up in a jacked up, souped up truck, wearing a nice new Rolex, I don’t assume they’re good. I assume they’re skilled at squeezing excess profits.
Honestly, I am surprised that more mechanics don't just open up their own indy shop.
I know 4 mechanics who all had okay jobs, they worked at 3 different places, but knew each other somewhat. They got to talking, and then rented a space, opened their own shop, split the bills equally, including the gal they hired to work out front.
They all made more than double in their first year, and triple what they were in year two.
They are much happier, wealthier, pick their own days and hours, vacation time is up to them, and loving life.
If dealers keep screwing their employees like they are, they will continue to lose more and more good people.
For 8 years i was half owner of a tire store, but we also did a lot more than tires.
We had just a lube girl who had no certification, tire guys who were not certified techs, and also 4 certified technicians. We paid way above normal wages, had happy employees, and happy customers to, because we did good work, and charged less than most places. But we still made good money on sheer volume, and reputation.
I was only there occasionally myself, but was on a day a woman walked in on the verge of tears, and holding a quote from the local toyota dealer she had just left. They were saying that all these things were wrong with her rav4, and she had no idea how to pay for it all. I went outside with her and had a good look, then we went for a test drive in it together, came back, pulled into the shop and put it on an empty rack, and me and a tech went over it with a fine tooth comb. It needed less than half of the work done they said it did at toyota, and I made a few calls to get parts prices to fix the actual problems, and then figured out labor, and handed her a quote for the work which came to 27% of the amount Toyota 5 minutes away wanted.
She burst into tears, hugged me, and left.
She came back a couple of weeks later and had cash in hand for the repairs.
Dishonest shops are just as likely to screw their staff, as they are their customers.
I can't tell AM how to live his life, but if it was me in his shoes, i would have long ago rolled my tool box out the door, and driven off into the sunset.
I know 4 mechanics who all had okay jobs, they worked at 3 different places, but knew each other somewhat. They got to talking, and then rented a space, opened their own shop, split the bills equally, including the gal they hired to work out front.
They all made more than double in their first year, and triple what they were in year two.
They are much happier, wealthier, pick their own days and hours, vacation time is up to them, and loving life.
If dealers keep screwing their employees like they are, they will continue to lose more and more good people.
For 8 years i was half owner of a tire store, but we also did a lot more than tires.
We had just a lube girl who had no certification, tire guys who were not certified techs, and also 4 certified technicians. We paid way above normal wages, had happy employees, and happy customers to, because we did good work, and charged less than most places. But we still made good money on sheer volume, and reputation.
I was only there occasionally myself, but was on a day a woman walked in on the verge of tears, and holding a quote from the local toyota dealer she had just left. They were saying that all these things were wrong with her rav4, and she had no idea how to pay for it all. I went outside with her and had a good look, then we went for a test drive in it together, came back, pulled into the shop and put it on an empty rack, and me and a tech went over it with a fine tooth comb. It needed less than half of the work done they said it did at toyota, and I made a few calls to get parts prices to fix the actual problems, and then figured out labor, and handed her a quote for the work which came to 27% of the amount Toyota 5 minutes away wanted.
She burst into tears, hugged me, and left.
She came back a couple of weeks later and had cash in hand for the repairs.
Dishonest shops are just as likely to screw their staff, as they are their customers.
I can't tell AM how to live his life, but if it was me in his shoes, i would have long ago rolled my tool box out the door, and driven off into the sunset.
And lets not forget the absolutely insane mark up they put on those parts, on top of the hourly labor rate.
Especially at dealerships!
And you don't do the same? Please...
There have been studies done that show if you quit your job every 3-4 years and keep moving around that you'll earn about 30-50% more money over your working career. Of course the trade off for that is less stability. I believe there can be a middle ground as well but it requires sticking up for yourself and showing your employer that you'd like to stay, but here are X/Y/Z reasons why you need a raise. Showing up with some comparables or even another job offer is a good way to do that. Keep in mind too if you aren't getting about a 5% raise per year on average right now you're essentially getting a pay cut each year.
It's a tough topic.
However, in my eyes, I know to the penny how much it takes per working hour to operate a 45000 sq ft job shop and it sure isn't $150-200/hr.
Not exactly the same but both specialties have their own special pieces, like the $80k CMM we just bought or the $250k tubing bender.
You offer us a job that going to make $200/hr, we'll jump immediately.
However, in my eyes, I know to the penny how much it takes per working hour to operate a 45000 sq ft job shop and it sure isn't $150-200/hr.
Not exactly the same but both specialties have their own special pieces, like the $80k CMM we just bought or the $250k tubing bender.
You offer us a job that going to make $200/hr, we'll jump immediately.
Actually no i don't.
Yes, but....
The local mom-and-pop hardware store retired a 1998 Ford F250 about a year ago. The owner said it ran, but the transmission "had issues". It sat there on their lot, away from where the customers would see it and I felt sorry for it and bought it from him yesterday for $300. I jumpered the battery, it took right off and I'll probably be bring it home today to reuse the engine.
As it sat there idling, I opened the glove box and found the original owner's manual. (Score!) I also looked at a couple of receipts that were in the glove box. One was for a replacement starter and they got charged $175 for the starter itself. That receipt was dated 2011. The next receipt was for the alternator and serpentine belt. $250 of that bill was for the alternator and $75 was for the serpentine belt. That receipt was dated in 2014. This was from the local indy shop and they get their parts from Advance Auto (I think) and both the alternator and starter were remans. I know they have to keep their doors open, but these prices were from 12 and almost 10 years ago.
I guess the owner agreed to it, so I don't have a dog in this fight.
How much do you markup your parts then?
The definition of insane is rather subjective.
It all depends on the industry and how your skill set (level) truly compares to your peers. Jump too often and you'll be a flight risk to a prospective employer. Everyone wants to say that they're worth more money than they're getting paid, but more often than not, a lot of folks don't look in the mirror...
Frankly, most mechanics don't have the knowledge, skill, or hours available in a day to tackle the opening of their own shop and managing it. The amount of paperwork involved and number of additional tasks/skills necessary above and beyond mechanical skills can be overwhelming. Then there is the hiring and managing of employees part, I won't even get into the PITA that this can be. Been there, done that.
That said, many of the best mechanics that I have known have had their own shops.
The place I mentioned, Scotty's Automotive, is not cheap. They are backlogged for 2 weeks most of the time. There is a reason for it.
I was there a year ago picking up a car and a customer was complaining about the bill. I shook my head. I told Dave, "Next time tell him to get his own shop with these lifts and $200K worth of SO tools. Then tell him to get 100 years of troubleshooting analysis experience."
Twice Dave did quick things for me for free. A Corolla composite filter was stuck and I was afraid to crack it. He had me come in, put it on the rack and swapped it for me. Then he said, "Get outta here." I said, "No way. What do I do if you are not here when I get into trouble?" And planked $40 down and told Dave to buy the team pizza. We all had a good laugh.
@AutoMechanic would love it there.
I was there a year ago picking up a car and a customer was complaining about the bill. I shook my head. I told Dave, "Next time tell him to get his own shop with these lifts and $200K worth of SO tools. Then tell him to get 100 years of troubleshooting analysis experience."
Twice Dave did quick things for me for free. A Corolla composite filter was stuck and I was afraid to crack it. He had me come in, put it on the rack and swapped it for me. Then he said, "Get outta here." I said, "No way. What do I do if you are not here when I get into trouble?" And planked $40 down and told Dave to buy the team pizza. We all had a good laugh.
@AutoMechanic would love it there.
I mark parts up 20%.
Is that CDN $ ? @AutoMechanic is in Virginia.
So, you’re paying your starting guys $19/hour. Top guys $53.
It doesn't really correlate that way. Cost of living up here is significantly higher than the US. I think percentage of labour rate is a better metric.
Also 20% on parts is nothing, especially heavy duty stuff.
Irrelevant of where someone lives, or the money, a certified Technician should make as a starting salary 1/3 of the shops labor rate, and go up from there.
If i raise my shop rate tomorrow to 180, the techs wages will also go up.
What if your fixed costs (e.g. rent, insurance, marketing budget, shop consumables) go up? Are you willing to take a pay cut?
I can't disagree. My son is only 39 and he speaks about the "young people" having poor work ethic. Even with higher wages and decent benefits, Costco has problems finding good employees like just about everywhere. At least at his Costco, he says the work atmosphere is ok regarding competent managers, etc.. Costco has been belt tightening the past 6 months anticipating a recession, which affects employees too.
All facets of any job are not controllable, but everyone can be proactive to attempt to make one's own situation as good as possible. The way you take in, assimilate, and react to issues can make a difference. But, if the entire establishment is toxic, I would move on. Today's young employees have different challenges for sure - I'm glad I am past that.
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