Reasonable Labor Charge

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The Critic

The Critic

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Earlier this week, I did the following work for an acquaintance. Listed below are the items that were done and their flat rate labor times (some of times have been reduced).

The vehicle was a E46 BMW 330ci.

Oil Change, engine and cabin filters, vehicle inspection = 1.0 hr
Spark Plugs = 1.0 hr
Lower Control Arms w/ bushing r&r (bushings from the old arms were re-used) = 4.0 hr
Inner Tie Rods (Both sides, also cut the old rods to re-use the boots) = 1.5 hr
Rear Differential Oil = 0.5 hr
Front Brake Pads and Rotors = 2.0 hr
Brake Fluid Flush = 1.0 hr
Diagnose Washer Fluid Leak = 0.5 hr

Total = 11.5 hr.

What would a reasonable labor charge be for all of the work performed?

The local dealer charges $150/hr, local shops are between $110-$130/hr.
 
I'm a certified tech I usually charge about 60 per hour side work . Shops around here charge between 90-130
 
Is there shade tree insurance coverage as well if anything goes wrong with those parts installation and it causes an accident? Those other shops all carry insurances which help to jack up the price to $100-$150. The mechanics that do that work in those shops get paid $18-$35/hr depending on how good they are with most probably in the $18-$25/hr range. I can't see an uninsured shade tree mechanic charging more than $25-$35/hr. When I did things on my neighbor's vehicle I worked for around $12-$15/hr.
 
What do the techs at that BMW dealer make? Should you make more than them? As asked above, do you carry liability for your work?

Check the quick lube thread from a couple of days ago. You're the last one to touch the car if anything goes wrong.

How long did the work actually take you? (just curious, long list)
 
You didn't clarify this before you did the work? Are you crazy?

If you value the friendship or if you're planning on making this a habit, you should let him know it was a mistake to not clarify what the rate is, and then ask him what he was thinking the rate was going to be, and work with, if not totally accept that unless he suggests something totally unreasonable.

After that, you really need to establish your rate up front and tell him before you accept the work.
 
When I shade tree, I charge between $75 and 100 for each actual hour worked.

For the work you did, I'd say anywhere from $500-750 depending on how long it took you and how generous you feel.

I also would have talked about this before I started working.
 
Originally Posted By: Noey
You didn't clarify this before you did the work? Are you crazy?

If you value the friendship or if you're planning on making this a habit, you should let him know it was a mistake to not clarify what the rate is, and then ask him what he was thinking the rate was going to be, and work with, if not totally accept that unless he suggests something totally unreasonable.

After that, you really need to establish your rate up front and tell him before you accept the work.


This.
 
At 110 an hour they'd pay 1265 dollars. Charge them 400 and be done with it . I'd charge 400-500 for it but I wouldn't voluntarily work on a bmw either. Doesn't matter what a tech usually makes that's irrelevant . They would pay x amount to have it done at a shop charge 40%- 60% of that is fair. That's how techs make good money on the side . What I always do is look up the total amount of hours it'll take for the job and charge them 60 per hour. A little less if ots a car I like and can definitely beat the time on of its a car I think I'll break even I charge 60 if I think I may lose a little time on I may round up my estimate. And if the cars a beater and rusted up I charge more clean nicer car a little less. I certainly charge based on the aggravation of the vehicle.
 
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I hope you discussed this with your customer before you started the job if not good luck.. In some states if you don't give a price and the customer refuses to pay your sunk.
 
Originally Posted By: ram_man
At 110 an hour they'd pay 1265 dollars. Charge them 400 and be done with it . I'd charge 400-500 for it but I wouldn't voluntarily work on a bmw either. Doesn't matter what a tech usually makes that's irrelevant . They would pay x amount to have it done at a shop charge 40%- 60% of that is fair. That's how techs make good money on the side . What I always do is look up the total amount of hours it'll take for the job and charge them 60 per hour. A little less if ots a car I like and can definitely beat the time on of its a car I think I'll break even I charge 60 if I think I may lose a little time on I may round up my estimate. And if the cars a beater and rusted up I charge more clean nicer car a little less. I certainly charge based on the aggravation of the vehicle.



Would agree here. Also depends whether you are helping out or making money here, which you have not stated. I tend to help others with their cars when they need work, so usually it's a few bucks, beer, pizza and a good time....Unless it is something I have to send to a shop....
 
Originally Posted By: daves87rs
Originally Posted By: ram_man
At 110 an hour they'd pay 1265 dollars. Charge them 400 and be done with it . I'd charge 400-500 for it but I wouldn't voluntarily work on a bmw either. Doesn't matter what a tech usually makes that's irrelevant . They would pay x amount to have it done at a shop charge 40%- 60% of that is fair. That's how techs make good money on the side . What I always do is look up the total amount of hours it'll take for the job and charge them 60 per hour. A little less if ots a car I like and can definitely beat the time on of its a car I think I'll break even I charge 60 if I think I may lose a little time on I may round up my estimate. And if the cars a beater and rusted up I charge more clean nicer car a little less. I certainly charge based on the aggravation of the vehicle.



Would agree here. Also depends whether you are helping out or making money here, which you have not stated. I tend to help others with their cars when they need work, so usually it's a few bucks, beer, pizza and a good time....Unless it is something I have to send to a shop....


Right like my close family I don't charge anything. Friends I'd help for free to but "customers" must pay
smile.gif
 
I posted this thread because I am interested in hearing what others think is a reasonable charge.

I already have a number in my mind, and the owner and I are on the same page.

As far as the actual time spent, it was very close to the flat rate times.
 
From what I learned in school...

The customer gets to decide how much you make if you don't clarify your rate and estimate beforehand.
 
Originally Posted By: The Critic
I posted this thread because I am interested in hearing what others think is a reasonable charge.

I already have a number in my mind, and the owner and I are on the same page.

As far as the actual time spent, it was very close to the flat rate times.


50% Of dealer rate and I presume parts are at cost? My guess also is you held up the car for a few days? The dealer rates mean getting car back same day not waiting for parts and work to be performed.

I pay $65/hr for 25 year experienced Subaru master tech with three life shop who works on my 07 mdx and 05 Subaru. He marks up parts for sure though as expected. Dealer rates around $105-$120/HR locally.

Lastly the money you charge are you declaring any of it? That clearly makes a difference in the final rate.
 
Since this is an acquaintance and not a friend its probably reasonable. A friend would probably cut your hours in half again for the LCA/brake/tie rod work.
 
If you think you're getting your BMW back same day from the dealer... HAHAHAHAHA

Seriously, at the last two dealers I've dealt with, one I worked at for 2 years, you'd wait 2 weeks for an appointment and then maybe two days for the work to be performed with no loaner because it's not warranty work. Even if they have parts in stock hardly nothing gets done same day. BMW has lost me as a customer. I'll buy them used and work on them myself, but I have never experienced a good dealer.

If there's something I can't/won't do, I take it to an indy that is 1.5 hours from my house and pay the $150/hr without balking. Only people in the whole state that will touch my Bimmers.
 
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