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I would like to hear your opinions on flat rate versus hourly pay in the industry. Personally I do not have a problem with flat rate if the business is generating enough customers every week that each technician has the opportunity to flag at least 40 hours.
I would like to know how other technicians cope when they work on flat rate in an environment where flagging 40+ hours isn’t always an option. Do you work other jobs?
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The first dealership I worked at flat rate was not really a problem other than it was a team system which had it’s own shortcomings and advantages. At the second dealership there just wasn’t enough work to support the techs working there and as a result I did other jobs, one of them was video production BTW. Thing is in the end they let me go because I was asking for too much time off to do video. I guess the moral of the story is that yes, do what you can to make a living but try to keep the balance so that you don’t loose your primary job as a result. As for salary it can work both ways too. With flat rate they don’t care as much if you walk out the door early if your work is done, you might miss an opportunity but it might be one that keeps you there late. With salary you aren’t walking out the door early and if it’s slow you might find yourself mowing the lawn, cleaning the bathrooms, or some other menial task that’s not repair related. At the end of the day the grass is always greener I suppose.
In summary, flat rate can be feast of famine but at least you have some freedom. Salary has security however you don’t have the freedom that flat rate can sometimes provide, it also puts a cap on how much you can make. It’s also possible to work a salary job where you bill way over 40 hours but only get paid 40. It’s all in what you’re comfortable with I suppose. I think it really depends on the work environment and how the shop is run. Salary AND flat rate can work if you’re in the right shop.
[quote=”EricTheCarGuy” post=31172]The first dealership I worked at flat rate was not really a problem other than it was a team system which had it’s own shortcomings and advantages. At the second dealership there just wasn’t enough work to support the techs working there and as a result I did other jobs, one of them was video production BTW. Thing is in the end they let me go because I was asking for too much time off to do video. I guess the moral of the story is that yes, do what you can to make a living but try to keep the balance so that you don’t loose your primary job as a result. As for salary it can work both ways too. With flat rate they don’t care as much if you walk out the door early if your work is done, you might miss an opportunity but it might be one that keeps you there late. With salary you aren’t walking out the door early and if it’s slow you might find yourself mowing the lawn, cleaning the bathrooms, or some other menial task that’s not repair related. At the end of the day the grass is always greener I suppose.
In summary, flat rate can be feast of famine but at least you have some freedom. Salary has security however you don’t have the freedom that flat rate can sometimes provide, it also puts a cap on how much you can make. It’s also possible to work a salary job where you bill way over 40 hours but only get paid 40. It’s all in what you’re comfortable with I suppose. I think it really depends on the work environment and how the shop is run. Salary AND flat rate can work if you’re in the right shop.[/quote]
Good points, I assume banks work in the same way everywhere, with a flat rate you have better chances of a loan, as you have a security and a steady income, something the bank can work after.
that can lead to lower interest for some reason only economy people know 😛I hate flat rate it’s one of the worst pay scale out there I know a lot of good tech that. got out of repairing cars
Sounds good on paper but just DOES
NOT workI say hourly for an apprentice who is learning the trade for the first 3 year’s, that way they have plenty of time and when the service manger is confortable with this tech and thinks he can handle flat rate switches him over.
Ok Than I have a good question. Why do todays techs accept this flat rate crap?? My thing is if no one will apply for a job that is flat rate them maybe jobs would open up to the right labor rate. I am 60 and retired but if I was younger there is NO way I would ever go to flat rate. All Flat rate is good for is for sloppy work done fast and most of the times NOT done right. In the 45 + years that I have been a tech I have seen the bad side of flat rate. And to this day I just don’t get it. I made more money hourly than most tech did on flat rate. And I also took the time to do the job right the first time with out the pressure
of a flat rate pay. When I worked at a chevy dealer ship all they kept giving me was warranty work and back then warranty work only paid haft of the book labor rate HELL there was weeks I worked 50 hours but got paid for 25 hours. Needless to say a month of that and I walked out .I WILL NEVER GO BACK TO FLAT RATE
I think that in todays market flat rate should just dieWhat else are we suppose to do? Most of us invested small fortunes in school and tools and this is what jobs offer. Do we just abandon these expensive tools and degrees and work unskilled labor for 9.00 an hour?
I wish it would die, but the dealerships make money this way, and we have no hand to force them to change.
This is why I have talked so many young guys thinking about =becoming an auto mechanic on not going in to the field There were some that did not listen and today they tell me That I was right and they regret ever doing this
I don’t know were you are but in philly most dealer ships have a reputation of doing very poor work because most good techs will NOT work flat rate plus Most people go to the dealership for warranty only anywayBack in 93 when I went to DHL to do fleet repairs I got 24 bucks an hour plus I was always good for 20 hours a week over time at time and a haft
so I went from a dealership busting my butt for 20 hours flat rate a week to busting my butt hourly and made good money plus there was NEVER a slow time in a fleet repairs so I always made money
and what I liked was you did not have to always be buying tools for the new model year like a dealership
And I also every saturday did side work in my driveway at home I ended up making more money in a week that I
could in a month at a dealership
If I had to live my life over again I would work for verizon the phone co I can tell you first hand those boys makes some major money and not even work hard at all
Back in the late 50s early 60s it was fun to work on cars but todays cars are just a royal pain in the butt
So I would never go in to this field againI am out in RI, where the pay is even worse than the rest of the country. But, I have pride in my work so if I touch it, I do it right, but flat rate has driven me out of the industry before and it looks to repeat itself. The industry has gone to hell. If you go to FlatRateTech.com, you can read how everyone hates this career field now.
yep it has driven most out of the industry
And here is another problem when you look at all the tools we must have and to up date them all he time and try the best you can to to keep up with the new stuff The money we make is just not good
I felt that I had to know much more than a Dr BUT Drs make much more WHY IS THAT
Is it because we get dirty at our jobs?? Now I see some jobs require a collage degree to became a tech
Hell if I have to go to collage there is NO WAY that I would become a auto tech
And now I keep hearing there is a shortage of good auto mechanics BOY I WONDER WHYI wouldn’t necessarily use a doctor as an example, they have a life in their hands, but being an automotive technician means we are an HVAC specialist, electrician, plumber, safety inspector, computer specialist and general car repair expert.
I hate how people think that the techs are in there making great money by ripping them off. First and foremost, I have never worked at a shop that lies to the customer, I am sure they exist, but they are the exception and not the rule. Secondly, you may pay 99.00 an hour to the dealership, but your average tech is only seeing 15% of that. Plus we may be there for 50 hours, but we aren’t getting paid for 50 hours. If we made other industries do flat rate for awhile, they would be up in arms about how touch making a living is.
Not necessarily There are times were we do hold people life in our hands just do something wrong with some ones brakes or steering. TO me it does not hold water that Drs are paid more because they deal with someones life There are bad drs out there that are in it for the money only. Why is it we are expected to know so much but paid crap
I all ways felt that flat rite was to benefit the dealership Funny Its the dealerships that has pushed this for years
I always wonder what if there was an auto thec union would flat rate even exits’ BUT I don’t think I will ever see that in my life timeFor me I got in to auto repair back in the 60s because it was fun back then. But today the fun is LONG GONE
[quote=”stingray66″ post=31849]Ok Than I have a good question. Why do todays techs accept this flat rate crap?? My thing is if no one will apply for a job that is flat rate them maybe jobs would open up to the right labor rate. I am 60 and retired but if I was younger there is NO way I would ever go to flat rate. All Flat rate is good for is for sloppy work done fast and most of the times NOT done right. In the 45 + years that I have been a tech I have seen the bad side of flat rate. And to this day I just don’t get it. I made more money hourly than most tech did on flat rate. And I also took the time to do the job right the first time with out the pressure
of a flat rate pay. When I worked at a chevy dealer ship all they kept giving me was warranty work and back then warranty work only paid haft of the book labor rate HELL there was weeks I worked 50 hours but got paid for 25 hours. Needless to say a month of that and I walked out .I WILL NEVER GO BACK TO FLAT RATE
I think that in todays market flat rate should just die[/quote]It’s true the flat rate system can cause issues but the auto repair industry is a difficult one to make a salary structure work. If you’re a shop owner and you don’t have the work coming in and you’re paying your workers salary then you’ll probably end up letting some of them go. With flat rate it is feast or famine but at least it follows the market. Don’t get me wrong I think flat rate can work against the technician at times however I really don’t know of a better system that’s out there at the moment that we could latch onto.
As for other professions you really can’t compare them. I agree that technicians need to be paid more but with the overheat a repair shop needs to run these days it’s amazing that we can make any money at all. By the time you’re done with equipment and training you’re going to have to write a lot of work orders to make up that cost. Aside from that the public perception of automechanics is bad enough as it is, if we start charging even more they’re really going to come after us. I agree that the industry needs some sort of overhaul since the older techs are getting out and there aren’t enough new ones coming in to replace them. The pay needs to match the skills and education of the technicians coming in or else they won’t be motivated to get into the auto repair field in the first place. Perhaps the flat rate system needs to be modified but I don’t think you’re going to see it go away anytime soon.
[quote=”stingray66″ post=31849]Ok Than I have a good question. Why do todays techs accept this flat rate crap?? My thing is if no one will apply for a job that is flat rate them maybe jobs would open up to the right labor rate. I am 60 and retired but if I was younger there is NO way I would ever go to flat rate. All Flat rate is good for is for sloppy work done fast and most of the times NOT done right. In the 45 + years that I have been a tech I have seen the bad side of flat rate. And to this day I just don’t get it. I made more money hourly than most tech did on flat rate. And I also took the time to do the job right the first time with out the pressure
of a flat rate pay. When I worked at a chevy dealer ship all they kept giving me was warranty work and back then warranty work only paid haft of the book labor rate HELL there was weeks I worked 50 hours but got paid for 25 hours. Needless to say a month of that and I walked out .I WILL NEVER GO BACK TO FLAT RATE
I think that in todays market flat rate should just die[/quote]It’s true the flat rate system can cause issues but the auto repair industry is a difficult one to make a salary structure work. If you’re a shop owner and you don’t have the work coming in and you’re paying your workers salary then you’ll probably end up letting some of them go. With flat rate it is feast or famine but at least it follows the market. Don’t get me wrong I think flat rate can work against the technician at times however I really don’t know of a better system that’s out there at the moment that we could latch onto.
As for other professions you really can’t compare them. I agree that technicians need to be paid more but with the overheat a repair shop needs to run these days it’s amazing that we can make any money at all. By the time you’re done with equipment and training you’re going to have to write a lot of work orders to make up that cost. Aside from that the public perception of automechanics is bad enough as it is, if we start charging even more they’re really going to come after us. I agree that the industry needs some sort of overhaul since the older techs are getting out and there aren’t enough new ones coming in to replace them. The pay needs to match the skills and education of the technicians coming in or else they won’t be motivated to get into the auto repair field in the first place. Perhaps the flat rate system needs to be modified but I don’t think you’re going to see it go away anytime soon.
Just to add, we had a discussion about this at Subaru school today during lunch break. Just about all the technicians, even the older ones, agree that flat rate has to go and that it is a dying industry.
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