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  #16  
Old 04-26-2000, 04:46 PM
hamish
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HELLO,
From my point of view it is good for me and the dealer if a flat rate is quoted-
eg when I wanted the disk done the dealer knew the job and quote an exact price but an independent who had not done the job before wanted twice as much as he said it would take two hours!! The dealer got the job but if he had said it might take 2 hrs at$80 an hour I would have run a mile.
Also I feel that it gives the dealer a fighting chance to be competitive with owners of older cars and keep them in the dealer network.I now always phone the dealer before getting jobs done and find them to more and more competitive-it is having a 12000 service and after negotiation it is costing only $50 more than the local shop!!!
Is this normal behaviour or am I just lucky with my dealer??
HAMISH

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  #17  
Old 04-26-2000, 05:15 PM
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Join Date: Mar 2000
Location: Gainesville FL
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Hamish,

I think you are missing my point. The standardized labor figure should be easily found my anyone competent in this busines. Not everyone follows the book, but that wasn't my discussion.

My point is that once you have decided to buy that 120k service that is figured at say four hours labor at both places and the same parts and the independent is 50 dollars cheaper. It should be because he is slightly less on the labor rate and maybe a little less on parts.

THE DIFFERENCE will come by how each shop pays his help (this might be considerably different in U.K.). The one that pays by flat-rate is giving his crew the incentive to work fast, cut corners, etc. The one that pays hourly (basically salary) gives the tech the right to be meticulous. His only incentive is his desire for beautiful work. One tech will do three or four of these services a day the other one and a half. My shop pays hourly, ask how I know how many four hour services, techs under this system, can do in a day.

If a flat rate tech makes a mistake he will have to work for free the next time. In my shop if a car comes back it might not even go to the same tech as the new problem might be better approached by a different tech with different skills. Under our system work is the same whether it is come back or new. No body works for free. The customer of course does not pay.

This single issue is the number one reason I guarantee that any shop you go to will have an average seniority of less than five years (if they PAY flat-rate). Our seventeen employees average over ten years seniority AT OUR SHOP (not just in the industry).

BTW. It isn't necessarily the dealer who will pay flat-rate. Most shops historically have paid flat-rate in the US. You will very seldom find a heavy truck shop that pays flat-rate though. Would you want your doctor to be paid flat-rate. Its sure good they make so much money the incentive isn't as great as we Americans probably all pay flat-rate to our doctors.

------------------
Steve Brotherton
Owner 24 bay BSC
Bosch Master, ASE master L1
26 years MB technician
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  #18  
Old 04-28-2000, 02:20 AM
Nick Jamal
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Ooh, a flaming file from my humble post! Too bad I can't take credit for the most interesting topic that it generated! Steve, you definitely deserve a 'thank you' for your insight into the flat-rate issue.
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  #19  
Old 04-28-2000, 03:57 AM
hamish
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Hello,
After reading your mail I am now clear on your point of debate!
I have been prompted to speak to the dealer who pays an hourly rate and also a bonus scheme for the WHOLE service department if the targets are hit.The techs,service desk and parts staff are all long serving!!
I would therefore moot the point that the combination of both is the best from a customer and staff view point!
hamish
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  #20  
Old 04-28-2000, 08:54 AM
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Join Date: Mar 2000
Location: Gainesville FL
Posts: 6,844
I'm glad you see it that way as we have gone to a performance bonus on top of our base pay system in the last five years. Unfortunately it probably is too small to actually affect performance (good for the customers, not so good for the bottom line)

------------------
Steve Brotherton
Owner 24 bay BSC
Bosch Master, ASE master L1
26 years MB technician

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