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How To Beat Flat Rate Pay System without Screwing Customers

In the US many automotive technicians get paid on a system called flat rate. This system pays a tech based on the job, not the time it takes that technician to complete. If a job pays 3 hours, a tech gets paid 3 hours. If it takes that tech 2 hours, they win. If it takes them 4 hours, they lose. The techniques we are going to talk about today helped me do a lot more winning of flat rate than losing. But always remember the number one rule, DON’T SCREW YOUR CUSTOMERS! This makes everything we talk about today pointless, you are a hack, and you should get out of the industry all together.

Become A CrewMember
If you like this show. If you get value out of the videos and content that I put out, consider supporting the show by becoming a CrewMember. You will get discounts you can’t get anywhere else, exclusive videos from me, and VW/Audi training manuals. Between the discounts and the training manuals, the CrewMembership can easily pay for itself. Become a CrewMember today

Help Support The Show
Many of you have asked about supporting the show. For that I thank you. For now, the best things you can do are SHARE THE SHOW, and shop with my links on Amazon. You will not spend any more money that you would normally. Here is the Amazon link Humble Mechanic on Amazon or you can check out some recommended tools I have listed below.

Listen to the Show
It is finally here! The audio only version of the Humble Mechanic Podcast. So many of you wanted to listen on the go, in the car, working out, and now you can. While I wait for iTunes, Google approval you can listen to the show here on the blog. Once those approvals come, you will be able to subscribe and download the audio podcasts from your favorite place. 

Trouble viewing? Watch “How To Beat Flat Rate Pay System without Screwing Customers” on YouTube.

As always I love to hear your thoughts. Please post them in the comments section below. Again, if you have any questions, email me Charles(at)humblemechanic(dot)com with Question for Charles in the subject. Also if you have an idea for a show, contact me via email, or use the contact me form!

Don’t forget to follow me at:

Humble Mechanic automotive Podcast

Why Flat Rate is Good ~ Podcast Episode 64

Hey everyone. Today on the automotive podcast, we are talking about something that I am sure will ruffle a few feathers. That is flat rate. For those of you not familiar with how flat rate works, you can watch a podcast I did called “Getting Paid on Flat Rate” or read a blog post I wrote called “Pros and Cons of Flat Rate“. Wow, remember when I wrote blog posts? Now I highly recommend you watch the entire show before blasting me in the comments section. I understand that many have a very negative view of that system. Try and open your mind a little, and look at it from both sides.

Join me today as we discuss:

  • Flat rate is not ALL bad
  • What is flat rate (see links above)
  • This is NOT pro flat rate propaganda
  • How flat rate is good for techs
  • How flat rate is good for customers
  • How flat rate is good for the shop/dealership
  • Think about the high efficiency jobs
  • QOTD “Is performance based pay, the best pay plan?”
  • and more

Trouble viewing? Watch “Why Flat Rate is Good ~ Podcast Episode 64” on YouTube.

As always I love to hear your thoughts. Please post them in the comments section below. Again, if you have a question for a show like this, email me Charles(at)humblemechanic(dot)com with Question for Charles in the subject. Also if you have an idea for a show you can email me, or use the contact me form!

Don’t forget to follow me at:

Manage money as a mechanicHey everyone. I am trying to wrap my head around the fact that Christmas is next week. This year just FLEW by. I guess it is time to start putting together my 2014 wrap up show. 🙂

Today we are talking about ways to manage your money as a technician. Working on flat rate can have big ups and even bigger downs. The way that we manage and budget our money is vital. There are so many things that impact the volume of cars coming in the shop. Heck anything from weather to gas prices can cause bad weeks. That doesn’t even take into account getting your butt kicked by a car.

This type of information is very much lacking in automotive training. We are told that it is important, but no one goes into detail about HOW to manage it. I have seen a lot of guys get stuck financially, and I don’t want that to happen to you. BTW I am NOT NOT NOT a financial adviser. This is just some of the things that I do. This is also not a flat rate show. You can see that at “Getting Paid on Flat Rate”.

Today on the automotive podcast we talk about:

  • You have to MAKE the money first
  • Buy tools smart
  • Don’t get in debt with the tool man
  • Buy used
  • Live below your income
  • Auto draft into your savings
  • Avoid other debt too
  • Do you need a new car? (No unless its a 2015 Golf Sportwagon 😉 )
  • Understand your busy times
  • Understand your slow times
  • Podcast on What To Do When The Shop Is Slow
  • and more

If you are having trouble viewing this video, watch it at Managing Money as a Mechanic, Podcast Episode 26 on YouTube.

Do you have any questions or comments on the show? Please post them in the comments below. Also, if you have an idea for a show topic, post that in the comments, or use the contact me form.

Humble Mechanic Logo

Today on the Humble Mechanic automotive podcast, we are talking about Flat Rate. This is the system on which technicians get paid, and customers get charged. There are many in the industry that have strong opinions about Flat Rate. Today we look at several aspects of this system.

  • Why Flat Rate is used
  • How Flat Rate works
  • Where do the times come from, what is “book time”
  • How to win at Flat Rate
  • How mechanics cheat Flat Rate
  • A Better system?
  • Does Flat Rate make you a better tech

There is one thing that I forgot to mention in the video. That is about protecting a customer from slow techs. Having a standard time will prevent a tech from “milking the clock”. That means if you get a slow tech you will not have to pay more just because they are slow.

I would love to hear your thoughts on Flat Rate, or any thing regarding getting paid as a mechanic, or being charged as a customer. Also, thank you for the feedback. One last thing, there is a water mark on the video. I am testing out new video editing software. Sorry about that. I don’t mind spending the money, but I want to be sure I get a good product that does what I need.

How honest mechanics get paid

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?

 

 

 

Podcast

Why Flat Rate is Good ~ Podcast Episode 64

Hey everyone. Today on the automotive podcast, we are talking about something that I am sure will ruffle a few feathers. That is flat rate. For those of you not familiar with how flat rate works, you can watch a podcast I did called “Getting Paid on Flat Rate” or read a blog post I wrote called “Pros and Cons of Flat Rate“. Wow, remember when I wrote blog posts? Now I highly recommend you watch the entire show before blasting me in the comments section. I understand that many have a very negative view of that system. Try and open your mind a little, and look at it from both sides.
Humble Mechanic automotive Podcast Become A CrewMember
If you like this show. If you get value out of the videos and content that I put out, consider supporting the show by becoming a CrewMember. You will get discounts you can’t get anywhere else, exclusive videos from me, and VW/Audi training manuals. Between the discounts and the training manuals, the CrewMembership can easily pay for itself. Become a CrewMember today

Do you shop on Amazon?
Many of you have asked about supporting the show. For that I thank you. For now, the best things you can do are SHARE THE SHOW, and shop with my links on Amazon. You will not spend any more money that you would normally. Here is the Amazon link ~ Humble Mechanic on Amazon or you can check out some recommended tools I have listed below.

Help Support The Show
Many of you have asked about supporting the show. For that I thank you. For now, the best things you can do are SHARE THE SHOW, and shop with my links on Amazon. You will not spend any more money that you would normally. Here is the Amazon link ~ Humble Mechanic on Amazon or you can check out some recommended tools I have listed below.

Important links:

Thanks for tuning in to the automotive podcast. I am really excited about the response. If you have an idea for a show, contact me via email, or use the contact me form! Humble Mechanic automotive Podcast Don’t forget to follow me at:

How To Beat Flat Rate Pay System without Screwing Customers

In the US many automotive technicians get paid on a system called flat rate. This system pays a tech based on the job, not the time it takes that technician to complete. If a job pays 3 hours, a tech gets paid 3 hours. If it takes that tech 2 hours, they win. If it takes them 4 hours, they lose. The techniques we are going to talk about today helped me do a lot more winning of flat rate than losing. But always remember the number one rule, DON’T SCREW YOUR CUSTOMERS! This makes everything we talk about today pointless, you are a hack, and you should get out of the industry all together.

Humble Mechanic automotive Podcast Become A CrewMember
If you like this show. If you get value out of the videos and content that I put out, consider supporting the show by becoming a CrewMember. You will get discounts you can’t get anywhere else, exclusive videos from me, and VW/Audi training manuals. Between the discounts and the training manuals, the CrewMembership can easily pay for itself. Become a CrewMember today

Help Support The Show
Many of you have asked about supporting the show. For that I thank you. For now, the best things you can do are SHARE THE SHOW, and shop with my links on Amazon. You will not spend any more money that you would normally. Here is the Amazon link ~ Humble Mechanic on Amazon or you can check out some recommended tools I have listed below.

Important links:

Thanks for tuning in to the automotive podcast. I am really excited about the response. If you have an idea for a show, contact me via email, or use the contact me form! Humble Mechanic automotive Podcast Don’t forget to follow me at:

Managing money as a mechanic is really no different than any other profession managing money. Yet I have seen so many people in the industry get in a bad way because of how they manage money and time. By time I mean flat rate hours they make. Today we are talking about some ways to better manage that money including STAYING OFF THE TOOL TRUCK! Well maybe not completely, but being smart about the tool truck. .

I really think this episode should be a must watch/listen for every new technician on day one! Humble Mechanic automotive Podcast Become A CrewMember
If you like this show. If you get value out of the videos and content that I put out, consider supporting the show by becoming a CrewMember. You will get discounts you can’t get anywhere else, exclusive videos from me, and VW/Audi training manuals. Between the discounts and the training manuals, the CrewMembership can easily pay for itself. Become a CrewMember today

Do you shop on Amazon?
Many of you have asked about supporting the show. For that I thank you. For now, the best things you can do are SHARE THE SHOW, and shop with my links on Amazon. You will not spend any more money that you would normally. Here is the Amazon link ~ Humble Mechanic on Amazon or you can check out some recommended tools I have listed below.

Important links:

Join me as we discuss vehicle warranties:

  • You have to MAKE the money first
  • Buy tools smart
  • Don’t get in debt with the tool man
  • Buy used
  • Live below your income
  • Auto draft into your savings
  • Avoid other debt too
  • Do you need a new car?
  • Understand your busy times
  • Understand your slow times
  • and more

Thanks for tuning in to the automotive podcast. I am really excited about the response. If you have an idea for a show, contact me via email, or use the contact me form!

Don’t forget to follow me at:

Humble Mechanic automotive Podcast

Doing Free Work As A Technician ~ Audio Podcast Episode 19

Doing free work as an automotive tech. Free work is something that can ruin a day when you are paid on flat rate. But doing little things for customers can really set you apart from other tech. We need to look at free work as a small investment in building our customer base. Just to be clear, techs need to get paid for the work they do. The mind set of doing free work needs to be properly placed.

Humble Mechanic automotive Podcast

Become A CrewMember
If you like this show. If you get value out of the videos and content that I put out, consider supporting the show by becoming a CrewMember. You will get discounts you can’t get anywhere else, exclusive videos from me, and VW/Audi training manuals. Between the discounts and the training manuals, the CrewMembership can easily pay for itself. Become a CrewMember today

Do you shop on Amazon?
Many of you have asked about supporting the show. For that I thank you. For now, the best things you can do are SHARE THE SHOW, and shop with my links on Amazon. You will not spend any more money that you would normally. Here is the Amazon link ~ Humble Mechanic on Amazon or you can check out some recommended tools I have listed below.

Important links:

 

On today’s automotive podcast we talk about:

  • A quick review of flat rate. Full show about Flat Rate
  • What do I mean by “free work”
  • How we get pulled into doing free work
  • How free work can be bad for a tech
  • How it is good for techs
  • Jobs you should NOT be doing for free
  • Time investments
  • and more

Thanks for tuning in to the automotive podcast. I am really excited about the response. If you have an idea for a show, contact me via email, or use the contact me form!

Don’t forget to follow me at:

Humble Mechanic automotive Podcast

Automotive podcast episode 3 Flat Rate

Today on the Humble Mechanic automotive podcast, we are talking about Flat Rate. This is the system on which technicians get paid, and customers get charged. There are many in the industry that have strong opinions about Flat Rate. Today we look at several aspects of this system.

Become A CrewMember
If you like this show. If you get value out of the videos and content that I put out, consider supporting the show by becoming a CrewMember. You will get discounts you can’t get anywhere else, exclusive videos from me, and VW/Audi training manuals. Between the discounts and the training manuals, the CrewMembership can easily pay for itself. Become a CrewMember today

Do you shop on Amazon?
Many of you have asked about supporting the show. For that I thank you. For now, the best things you can do are SHARE THE SHOW, and shop with my links on Amazon. You will not spend any more money that you would normally. Here is the Amazon link ~ Humble Mechanic on Amazon or you can check out some recommended tools I have listed below.

Important links:

Join me as we discuss:

  • Why Flat Rate is used
  • How Flat Rate works
  • Where do the times come from, what is “book time”
  • How to win at Flat Rate
  • How mechanics cheat Flat Rate
  • A Better system?
  • Does Flat Rate make you a better tech

There is one thing that I forgot to mention in the video. That is about protecting a customer from slow techs. Having a standard time will prevent a tech from “milking the clock”. That means if you get a slow tech you will not have to pay more just because they are slow.

I would love to hear your thoughts on Flat Rate, or any thing regarding getting paid as a mechanic, or being charged as a customer. Also, thank you for the feedback. Please post them in the comments section below. If you have an idea for a show, contact me via email, or use the contact me form!

Don’t forget to follow me at: