well, the old man and i made the decision to go back at it in the indy repair shop biz again. thought i'd see what the waters are like in HAMB land before we do a formal survey. we're in the south bay, los angeles. to start we're gonna open a general repair and transmission facility not a hot rod shop...that comes later . later down the road, we'll probably move into the other half of our facility and focus that end of the business on '72 and earlier american. what is your shop's hourly labor rate? do you pay your mechanics/techs hourly/salary or flat rate? what do you pay hourly -or- whats the cut for flat rate? any input will be greatly appreciated. thanks.
IM in MA but Im guessing our rates around here might be similar. Our current rate is $60 per hour for labor- it works out well. Its not the highest rate around here but not the lowest either. Keeps the dreamers out of my shop and brings the people who really want their rides worked on by a quality shop into the place. I pay my metal fab guy and my #1 auto body tech a salary. One works four 10 hr days because he has a long commute, and the other works OT if I need him to- both are extremly reliable and great to work with.(yeah - if you guys are lurking like I know you do- I appreciate you) My mechanical guy gives me a flat price per job which I p*** along to the customer. I have part time guys (2) who work on a hourly rate but its based on the fact they are and intern and an entry level guy- and get paid under $20 per hour cuz they are still learning.
Most everyone out here is $70-$80 an hour, most of the indy shops pay salary from $18-$25 only the dealers are on flat rate it seems. The usual flat rate is about 20-25% of the hourly rate.
I am in the SF Bay Area, very pricey. We are an independent shop, our labor rate is $114.00 an hour. Dealer ships around here are as much as $150.00. Probably raise our rates at the first of the year. My tech's are hourly and the pay scale ranges from $19.00 an hour for a driver, parts installer, oil changer to $35.00 an hour for the journeymen. Not sure how that compares to your area, my advice would be to do a poll of shops in your neighborhood, your compe***ors, then sit down and calculate YOUR cost of doing business, including a reasonable salary for yourself. Don't be afraid to charge what you need to to make a living. It took me years to figure that out !!!! Good luck with the new business.
NOT hyjacking, but damn!!! Is that the norm? Is that what I can look forward to if I move down there?? I know about the cost of living, (life in..SO CAL- my post on me thinking about moving down there) but I bust my *** here and make $11.00 p.h. , Hell, I drive, change oil, and install parts for FUN at home!!! Ken
Do not let California wages fool you, in certain areas, $20 per hour is chump change. Housing can be astronomical. Look for a place in San Jose if you want sticker shock.
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