From: Everette (194cbteng@bellsouth.net)
Date: Sun Sep 25 2005 - 17:36:52 PDT
Perhaps in some limited way I can shed some light on this in a small way -
At one time I was bookkeeper for GM dealership, we had "flat rate" book.
This was hours that GM would pay for warranty work, by the way GM determined
what rate per hour they would pay, what we paid mechanics not withstanding.
Dealership I was at paid mechanics half what we charged for labor, and
dealership paid medical insurance premiums out of dealership half, and some
other benefits.
Further there are "rate manuals" that shops can purchase that set hours for
most all jobs. including body work. It is a common thing for mechanics to
develop "short cuts" and them and dealer still charge what book says, and if
it takes longer they add hours, but my experience they seldom deduct for
short cuts..
If vehicle came in shop that was not in book, forman guestimated on high
side, with assistance of lead mechanic or two..
It was not uncommon in our shop for mechanics to draw pay for more than the
actual time worked..
.. please do not take this as criticism of dealer or mechanics for I do the
same in my business, if I know short cut, I use it....
E
----- Original Message -----
From: "Rick v100" <rickv100@yahoo.com>
To: "Military Vehicles Mailing List" <mil-veh@mil-veh.org>
Sent: Thursday, September 22, 2005 8:18 AM
Subject: Re: [MV] Free estimates
> Not to start a flame war but how is flat rate fair?
>
> Of the few mechanics I have spoekn with they are under
> pressure from management to come in under the flat
> rate those that don't are fired. This pumps the shops
> profit as they are billing for more hours then they
> are actually working. >
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