"Shop Fees"

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I've worked in shops and I know that "Shop Fees" are charged to cover the rags, chemicals, insurance, heat, secretarial, and just about every other miscellaneous cost that comes up in the day-to-day world cost of running an auto repair business.
I will also admit that there is a big double standard in the industry. To everybody here who is in favor of the shop fee, would you stick up for your favorite hamburger joint that charges fees added to your meal? We'd be talking additional dish soap fees, unloading of the delivery truck fees, washing window fees, napkin fees, catsup/mustard fees, etc. The same could be said about any other business that tacks on multiple miscellaneous fees.
I'm in favor of just raising the labor charge, doing the job correctly, and have the customer whine only one time instead of telling the whole world about the high "shop fees" months after the repair has been completed.
 
You cannot charge a generic "shop fee" on a customer repair order in California. Everything must be itemized. We do charge brake cleaner on repair orders as they are not free for us. Our door rate is $140 an hour and we have a waiting list for work in the shop.

Personally I would rather something like a shop fee be lumped into a slightly higher door labor rate, but I guess that is why I work in parts and my name isn't on the side of the building.
 
Ever see a hospital bill for every. little. trinket via those bar codey things?

I'd be annoyed as a mechanic to have to stop and write down every lock washer so it could be billed. Just let me rummage before I lose track of what I'm trying to do.
 
Originally Posted By: Kruse
To everybody here who is in favor of the shop fee, would you stick up for your favorite hamburger joint that charges fees added to your meal? We'd be talking additional dish soap fees, unloading of the delivery truck fees, washing window fees, napkin fees, catsup/mustard fees, etc.


If that's the Business Model the hamburger joint wants to follow, they can give it a shot. Customers will decide if it is a viable idea or not.
 
Here is what you should have done. Before the work is done, request a written quote AND ask they quote the shop fees too. Then you and only you can decide, do I want to have this work down here. I have a problem with shop fees too, especially if they are not quoted up front. There is something wrong with "additional dealer markup" and "shop fees" as they are too variable. And the argument that it costs a lot to keep the doors open or the guys just trying to make a living is no excuse for tacking on charges that to me, smell of ripoff.

I don't go to my employer and tell them they owe me a transportation fee or a clothing fee.
 
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Years ago, a Service manager sits with Owner / general manager ... and is asked why his service revenue is flat, and is asked to do something about it, or else...

He can't easily increase the number of cars coming in... and he can't raise his hourly rate too high... or people will complain and maybe fewer cars will come in if he does. He brainstorms about how he can bring in more revenue on the same number of cars... voila... shop fees, brilliant...!

And the finance manager, sweating about his job, does the same thing... voila, nitrogen filled tires, vin etched glass, pin stripes, appearance package, the most expensive scotch guard ever...

There is always someone setting the sales goals, and someone desperate to meet or exceed them... it is a vicious circle.

And people complain about car repairs and car dealers... wonder why...?
 
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Adding shop supply fee's to the labor rate wouldn't work in most cases, Tech's get paid a percentage of the Labor or Parts/Labor. Can't go around paying your employees for shop supplies they didn't buy. To keep the paper work straight...The supplies fee needs its own line on the invoice.
 
Of course the markup on parts doesn't cover the "shop fee", does it? Well, they are "entitled" to a big markup on parts anyway. I suspect the ease with which many of us can check the internet for a handle on parts costs is a source of agro for the markup it up specialists.
 
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Good reason to learn to do it yourself or suck it up....

Only going to cost even more down the road! I've heard of a few shops moving to 200 dollars and hour or labor-but at least you will have a nice waiting room to be in....
 
Shop rate in my area is 70 to 75 bucks an hour for independent shops. Makes me glad again I moved away from Cali...everything is too darn high in cost. I only really miss the weather and the pretty girls.
 
Originally Posted By: antiqueshell
Originally Posted By: Mr Nice
Shops have crazy overhead to keep the doors open.



Not true in all areas of the country, sure if you live in
LI NY, but if you live in a rural part of the South, the costs of operation are generally low except for equipment, which can be bought used at a reasonable cost.

I have no issue with shop fees as long as they give you a reasonable itemized description of why it is being charged.
If they just put the term "shop fee" I think it is a
obvious rip off.
...it costs us $956 per yr for the permit to have a solvent tank. Then $150 / month to keep fresh solvent in it. $700/yr for the permit for a pressure vessile.that being the air compressor. The list goes on and on.
 
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Originally Posted By: Nayov
I'd much rather they upped their labor rate than pad the bill with a "shop fee".

So you're willing to pay it, you just want it hidden so you don't have to see it, right? Didn't they present you with an estimate before the work began? Did you agree to that estimate? Did you question the shop fee at the time the estimate was presented?

Originally Posted By: SumpChump
I do photography and I don't charge a fee for cleaning my lens before takin their photos or a battery charging fee.

That's a ridiculous comparison. You don't have hazardous waste disposal to contend with, you don't have unforeseen things such as nuts and bolts, and you also don't have much in the way of overhead.

Instead of a hobby find a real business and then try to make the comparison.

Originally Posted By: Kruse
To everybody here who is in favor of the shop fee, would you stick up for your favorite hamburger joint that charges fees added to your meal?

It's already started.

http://www.dnainfo.com/new-york/20130514...anhattan-diners
 
Shop owners need to take in enough money to pay the workers, expenses and have enough left over for their profit (or salary if you prefer). Customers tend to get aggravated if the hourly rate is too high, so the shop fee is a way of spreading additional revenue to its customers. The owner could just as easily gross up its hourly rate. I suspect the shop fee if more fair, as everyone gets hit evenly for this charge, rather than having it be a function of the number of hours the shop worked on each customer's vehicle.
 
Originally Posted By: Chris142
...it costs us $956 per yr for the permit to have a solvent tank. Then $150 / month to keep fresh solvent in it. $700/yr for the permit for a pressure vessile.that being the air compressor. The list goes on and on.

Sad but true. Different counties have some expensive "permits" to stay in business.
 
Originally Posted By: Chris142
it costs us $956 per yr for the permit to have a solvent tank. Then $150 / month to keep fresh solvent in it. $700/yr for the permit for a pressure vessile.that being the air compressor. The list goes on and on.

That is a state government just loves to get their greedy hands in everyone's' pockets.
 
Originally Posted By: simple_gifts
Originally Posted By: FowVay
You should have just done it yourself and saved $330.


Maybe his time isn't worth $0/hr like apparently yours is. 8)


Or maybe its really cold (he's in Maine), there's 4' of snow in the driveway, and he has no garage.
 
My indie shop charges 4% for the shop fee. This is charged on parts and labor. If you bring your own parts then it's only on labor. This shop has been real honest and has saved me way more than the 4% shop fee amounts to. Their hourly shop rate is on par for northern NJ, now $101/hour. He doesn't nickle and dime me. He's even loaned me a shop truck, at no extra charge, to use for the day while mine was being repaired. It's tough to run a business now a days, especially in a "Blue" state such as NJ.

Whimsey
 
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