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Flat Rate vs. Hourly

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  • #464665
    SpawnedXSpawnedX
    Participant

      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?

    Viewing 15 replies - 31 through 45 (of 105 total)
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    • #493031
      James PizziJames Pizzi
      Participant

        Flat rate is really something that is good and bad.
        I hear from all the old guys how it was back in the day when they got 50% of the door rate. I think that if it was still like that we wouldnt have many problems. I work at an indpendent and I make 32hr flat rate. Our door rate is 90.I am the only tech there. We have a service writer and a helper. It works for use. I guess the money isnt that bad either just is never the same.Thats where the problem is…

        #492332
        BruceBruce
        Participant

          There are still some places like that. A shop down the road from where I work pays 45%

          #493479
          BruceBruce
          Participant

            There are still some places like that. A shop down the road from where I work pays 45%

            #495749
            ChevypowerChevypower
            Participant

              I’ll never work Flat-Rape again. Nuh uh, no way Jose. I suffered the worst of the worst.

              My dad always says that it sounds like a way for employers to skirt the minimum wage laws, and I think that that’s exactly what they’re doing. :ohmy:

              I think a decent hourly wage plus a commission is the way to go. And none of this confusing garbage where commission kicks in after you bill so many hours and/or parts, because that lends itself to the same political BS where one guy gets the Gravy while everyone else gets screwed.

              LOFs at my shop pay 0.4, so figure a good tech can do them in 0.5 door to door, that’s 16 per day. Factor in the odd-ball that needs a new drain plug, or has excessive amounts of problems that require annotation on the ROs, and say that a good tech can perform 13 LOFs per day. That’s 6.5 hours billed by Flat-Rape standards.

              I would say that an additional $0.25 per LOF is fair. If they want to nickel and dime us to death, they can keep commission on things like Rotates and MPVIs. But when a Senior Tech gets a warranty diag that turns into a warranty engine replacement, the Diagnostician should see a decent chunk of change, and so should the HD tech doing the work. banana:

              I don’t have all of the numbers worked out, but that’s the beauty of etcg dot com, we can collectively agree upon a basic idea, expand it, and begin to make our attempts at implementation throughout the industry.
              OR: we can all hide behind our keyboards, bitching about how Flat-Rape has to go.

              Personally, I want to contribute to the formation of an idea.

              #497045
              ChevypowerChevypower
              Participant

                I’ll never work Flat-Rape again. Nuh uh, no way Jose. I suffered the worst of the worst.

                My dad always says that it sounds like a way for employers to skirt the minimum wage laws, and I think that that’s exactly what they’re doing. :ohmy:

                I think a decent hourly wage plus a commission is the way to go. And none of this confusing garbage where commission kicks in after you bill so many hours and/or parts, because that lends itself to the same political BS where one guy gets the Gravy while everyone else gets screwed.

                LOFs at my shop pay 0.4, so figure a good tech can do them in 0.5 door to door, that’s 16 per day. Factor in the odd-ball that needs a new drain plug, or has excessive amounts of problems that require annotation on the ROs, and say that a good tech can perform 13 LOFs per day. That’s 6.5 hours billed by Flat-Rape standards.

                I would say that an additional $0.25 per LOF is fair. If they want to nickel and dime us to death, they can keep commission on things like Rotates and MPVIs. But when a Senior Tech gets a warranty diag that turns into a warranty engine replacement, the Diagnostician should see a decent chunk of change, and so should the HD tech doing the work. banana:

                I don’t have all of the numbers worked out, but that’s the beauty of etcg dot com, we can collectively agree upon a basic idea, expand it, and begin to make our attempts at implementation throughout the industry.
                OR: we can all hide behind our keyboards, bitching about how Flat-Rape has to go.

                Personally, I want to contribute to the formation of an idea.

                #497391
                drthrift035drthrift035
                Participant

                  Dreams and Reality. People have to wake up. If you think you are going to get rich working at a dealership think again. Those days are over. These days you need to make at least $5,000 per month cash to think about living comfortable. I don’t know of any technician making that anywhere.

                  The system is a scam.

                  #496063
                  drthrift035drthrift035
                  Participant

                    Dreams and Reality. People have to wake up. If you think you are going to get rich working at a dealership think again. Those days are over. These days you need to make at least $5,000 per month cash to think about living comfortable. I don’t know of any technician making that anywhere.

                    The system is a scam.

                    #497534
                    White ShadowWhite Shadow
                    Participant

                      [quote=”drthrift035″ post=47699]Dreams and Reality. People have to wake up. If you think you are going to get rich working at a dealership think again. Those days are over. These days you need to make at least $5,000 per month cash to think about living comfortable. I don’t know of any technician making that anywhere.

                      The system is a scam.[/quote]

                      I don’t think anyone is talking about getting rich here. We’re talking about wages and the flat-rate system. Some people seem to think it’s fair and others really don’t agree. As for me, I left dealerships many years ago and got myself into a large corporation as a machine mechanic. From there, I was able to get into a management role in the company and I’ve never looked back. Best move I’ve ever made.

                      #496204
                      White ShadowWhite Shadow
                      Participant

                        [quote=”drthrift035″ post=47699]Dreams and Reality. People have to wake up. If you think you are going to get rich working at a dealership think again. Those days are over. These days you need to make at least $5,000 per month cash to think about living comfortable. I don’t know of any technician making that anywhere.

                        The system is a scam.[/quote]

                        I don’t think anyone is talking about getting rich here. We’re talking about wages and the flat-rate system. Some people seem to think it’s fair and others really don’t agree. As for me, I left dealerships many years ago and got myself into a large corporation as a machine mechanic. From there, I was able to get into a management role in the company and I’ve never looked back. Best move I’ve ever made.

                        #497717
                        ChevypowerChevypower
                        Participant

                          I just want a fair paycheck.

                          One of my old tool truck guys is a friend of mine on facebook. He posted a status earlier: “Just ordered a $21,000 toolbox! Who’s interested?”

                          Among many other things that I said in the comments section, I asked him who the fuck could afford that!

                          I’m always on craigslist hunting for deals on tools. I look at the size of the toolboxes being sold by retired techs and compare them to the size of today’s top of the line box. One thing stands out in my mind: As time goes on, we need more tools that cost more money. And somehow, it has been decided that we must foot the bill ourselves.

                          Sorry, but that is just pure horse shit. Tool prices are out of control. I bet that $21,000 box is worth less than $5,000 if sold for scrap. I can understand that total materials cost for it is probably in the neighborhood of $6,000. I understand that the manufacturing process probably costs another $2,000. If my math is correct, retail price is $13,000 above total production cost. That’s almost double!

                          When the Flat-Rape problem goes away, I will focus my attention on the tool companies.

                          #496360
                          ChevypowerChevypower
                          Participant

                            I just want a fair paycheck.

                            One of my old tool truck guys is a friend of mine on facebook. He posted a status earlier: “Just ordered a $21,000 toolbox! Who’s interested?”

                            Among many other things that I said in the comments section, I asked him who the fuck could afford that!

                            I’m always on craigslist hunting for deals on tools. I look at the size of the toolboxes being sold by retired techs and compare them to the size of today’s top of the line box. One thing stands out in my mind: As time goes on, we need more tools that cost more money. And somehow, it has been decided that we must foot the bill ourselves.

                            Sorry, but that is just pure horse shit. Tool prices are out of control. I bet that $21,000 box is worth less than $5,000 if sold for scrap. I can understand that total materials cost for it is probably in the neighborhood of $6,000. I understand that the manufacturing process probably costs another $2,000. If my math is correct, retail price is $13,000 above total production cost. That’s almost double!

                            When the Flat-Rape problem goes away, I will focus my attention on the tool companies.

                            #498038
                            BruceBruce
                            Participant

                              Yes some tools and toolboxes are expensive. But you dont have to buy them. My Dad is a mechanic as well, but I have a more expensive box than he does because I chose to buy it. I also have more tools than he does, but he gets by just fine with what he has. He has always told me that a toolbox never makes you any money, but I just got tired of cheap boxes so I bought a used SO. If I had to do it over again, I might have got a little bigger one but it would still be used. Fixing to buy a SO cart to because I am tired of cheap carts. Now if I had kids I probly wouldn’t have the SO box and probly have fewer tools or atleast some cheaper tools. I have everything from craftsman to SO.

                              There is no way I would ever spend 21k on a toolbox. I wont even pay that for a car. 21k, I better be able to live in it.lol

                              #496684
                              BruceBruce
                              Participant

                                Yes some tools and toolboxes are expensive. But you dont have to buy them. My Dad is a mechanic as well, but I have a more expensive box than he does because I chose to buy it. I also have more tools than he does, but he gets by just fine with what he has. He has always told me that a toolbox never makes you any money, but I just got tired of cheap boxes so I bought a used SO. If I had to do it over again, I might have got a little bigger one but it would still be used. Fixing to buy a SO cart to because I am tired of cheap carts. Now if I had kids I probly wouldn’t have the SO box and probly have fewer tools or atleast some cheaper tools. I have everything from craftsman to SO.

                                There is no way I would ever spend 21k on a toolbox. I wont even pay that for a car. 21k, I better be able to live in it.lol

                                #498063
                                JimmyJimmy
                                Participant

                                  What I would prefer is you work hourly but, you get flat rate. Heres what I mean by that. You work hourly for the month. But each job has a worth (flat rate). If you work over your gross for the month. You get a compensasion check. Which adds finnancial security if your business where you work at is slow. Now I work hourly but I am just starting out in the business. If I was at my last job Im sure that I would be making more than what I do now.

                                  #496708
                                  JimmyJimmy
                                  Participant

                                    What I would prefer is you work hourly but, you get flat rate. Heres what I mean by that. You work hourly for the month. But each job has a worth (flat rate). If you work over your gross for the month. You get a compensasion check. Which adds finnancial security if your business where you work at is slow. Now I work hourly but I am just starting out in the business. If I was at my last job Im sure that I would be making more than what I do now.

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