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Originally Posted by SYRacing
I dont understand how it works....here a tech makes between $12-15 an hour....they provide there own tools (often tens of thousands of dollars worth) and use the dealers provided lift (4-5k for a NICE lift) How can they justify charging the customer $45 an hour? Same with mercedes, the rate is $95 an hour here!
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Well, you provide the insurance, heating, sewage, building, specialized tools that the shop has that a tech doesn't have, benifits for the tech, sending the tech to school while he is being paid for no work done, etc, etc. Also the franchise is an investment. Interest paid for the building, maintaing a parts department and an inventory. The list goes on.
I often asked how my father charged his clients that much when the cost of the product is that low. At least I did till I worked for him. Then I saw all the incidentals that went into a business. Before we even made a dollar, we had expenses that we had to pay out of the loan we took. Then we had to payoff the loan with interest.