Like I said in yesterdays post, when I am out of the shop, cars are not at the front of my mind. I like talking about the industry, but not always the nuts and bolts of the job.(I feel like there is a joke in there somewhere) 🙂
When I talk to people about my job, one of the questions I get all the time is, “Has work been busy?”. That is a really interesting question, because it always leads to me explaining how most mechanics get paid. After I tell people, they usually say, “Wow, I never imagined that you got paid like that”. So I thought I would give you guys the low down on how I get paid, and how Flat Rate works.
Most dealership mechanics get paid on Flat Rate. The easiest way to understand Flat Rate is, I am paid based on productivity. The more work that I do the more I get paid. It is a pretty simple concept, but let me break it down a little more. I think if more people understood how mechanics get paid, they would appreciate what we do a little more.
Like I said, I am paid on productivity. Each job has an amount of time that it pays to complete. Lets take a job like replacing a headlight bulb. That job pays me .3 of 1 hour(that is 18 minutes). It does not matter how long it takes me to replace, I get paid .3 hours. If I can complete the job in less time, the extra is a bonus. If it takes me longer to complete, I come out losing. So if I made $10 per hour, I would get paid $3 to replace a light bulb.
What that also means if I am not working, actually doing work, I am not getting paid. I could go in to work for a 10 hour day and only get paid for 1hour. The flip side is, I can work a 10 hour day and get paid for 20 or more hours. It is a pretty interesting pay structure.
The times are based on several things. My dealer uses a calculation of warranty time. There are other labor guides that shop use like All-data, and Motors. They “say” the use the average time it takes a master mechanic to do the job. I think that sometimes they just make stuff up, because the times can be crazy!
I did a search to see what other say about how mechanics get paid. They are ALL written by professional writers that really do not understand the job. The system has pros and cons for mechanics and for customers.
Pros for the mechanic
This one is easy. The harder a mechanic works, the more they get paid. Simple! Working hard directly pays off. If its a job that does not pay well, you can hustle through it and move on to the next job that pays better.
Cons for the mechanic
There are some jobs that suck, plain and simple. They take longer than they pay. The other big con is, if there are no cars in the shop, mechanics get paid nothing! There is also the opportunity to take short cuts to do jobs faster. I can tell you, that almost always come back to bite a mechanic!
Pros for customers
The times are set. You will not have to pay more money because it takes longer to complete a job. This also makes mechanics work harder to get cars finished.
Cons for customers
Just like for the mechanic, it opens the opportunity to take short cuts that can result in the car not getting fixed. It also can let customers question how much they are paying. A job that takes 3 hours to complete, might cost a customer 6 hours worth of labor cost. ~this can be a post all on its own~. My reply to that is, “Would you want to pay more if it took longer?”. The answer is always no. 😉
That is pretty much the basics. Flat Rate is a love/hate relationship for me. Love the good days, HATE the bad ones. I think that I will dive deeper in this topic. Its one that is debated a lot in the shop.
What do you guys think? Good or bad for customers, mechanics?