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Shop rates???


MiCarl

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Soon I'll be setting my labor rate for the upcoming season and would like some input.

 

If you know what shops in your area are charging/hour I'd appreciate the following feedback:

 

Dealer/Independent

Geographical area (eg. West Tennessee).

Labor rate.

 

Thanks!

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$80.00 per hour here in my town of illinois.

of course there is only 2 shops here. one good and one not so good.

independent not dealer. one place will take a month to do a simple brake job. and when they break something will call you and say. it was broke before i tried to remove it ?

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Would you be talking about Ken's?

RandyA

 

Actually I use Caps in Bristol. Keith does good work and always goes out of his way to try to help me. I've used Ken's for all my bikes prior to the Ventures and he does do good work. I started using him when he was still working out of his house. Caps is just a lot more easier for me since it's just 1/2 mile from work.

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Our local Yamaha dealer (11/2 miles away) charges $55.00 US per hour. The local Honda dealer charges $75.00 an hour. If the bike is more than 5 years old, the rate goes to $150.00 per hour. The winger's in the area LOVE this dealership. I charge $30.00 an hour currently, and I don't mark up the parts for the VR.ORG members. The Suzuki and Kawasaki dealers both charge $60.00 per hour. But will not work on bikes over 10 years old. The only thing I will not work on is a Harley. These owners don't like their bikes sitting next to "Jap" bikes in the shop! I am not as "quick" as I used to be with repairs so I have adjusted my rate. Usually, money is not as big an issue as a quality repair is. I would rather take my time and do a good job than "rush" a bunch of bikes thru and have them all come back. Since I have a "one horse shop", (Me) it is easier to keep the quality high. With a group of mechanics, it would be more difficult.:thumbsup2:

Earl

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I won't work on a Harley either. Just digging around for the SAE tools takes too darn long. Besides, during the season I have enough metric work to keep me plenty busy. Also, there is a shop 1/2 mile away that only does Harleys. They send me the metrics and I send them the Harleys.

 

I couldn't pay the rent at $30. I suspect your fixed costs are much lower than mine.

 

In the interest of full disclosure I've run at $60 the last two seasons. The Harley shop up the road is $70. The only metric dealer within 20 miles was at $90 last time I checked.

 

The other variable is how much time is billed. I bill flat rate and generally use factory warranty labor +25%. Sometimes I make out on that, but generally I work more than gets billed.

 

One thing I learned really quickly is to charge a diagnostic fee (1 hour labor) which is credited to the job if I do it. I had too many people bring me a bike that wasn't running, I'd diagnose it and then when I quoted it get an answer like: "Oh, if that's all it is I can just do it myself."

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My independent guy in Canton GA charges $40/hr, but $60 for HD, as he is recouping his investment in all of the "strange and expensive" tools he's invested in. He is not as quick as a standard dealer, but he's meticulous and thorough. I don't mind leaving either of my scoots with him for 4 or 5 days for service or repair, as he usually goes over and above what I've asked him to do, only charges cost for parts, and only charges for the listed number of hours the service book says a typical service or repair should take, even if he spends 3X that much time to do it. He just loves working on bikes. As a certified mechanic on all Japanese brands, and a retired Yamaha engineer with 30+ years experience, I trust the guy without reservation. My RSV will never see the inside of a dealership, unless I can't get it to him for some reason.

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Hey Micarl,

You have brought up an excellent point! In the beginning, I got burned a bunch of times, figuring out a problem, thinking I would get the repair, and wouldn't! I now charge a fee to "Look" at any bike that comes in the shop. The other problem I have had is people bringing in aftermarket Ebay (China) parts to be installed on their bikes. With that issue, I have had to say, "If it is not a factory part, I will warranty the labor, but not the part." All of the Kits and Upgrades I sell are Genuine Yamaha parts, or BETTER, or they are parts I have manufactured using the very best 6061T6 Aluminum or 304 series Stainless Steel. After working in the Aircraft Industry for all these years, I have seen all to well, how much damage can be caused with the use of cheap parts and shotty labor. Because of my location, (small town, hard times) the labor rate I charge is OK for me. I get more bikes in than I can work on most times. When I am well, I work a full time job, and don't rely on the repair income to pay the bills. (except recently) I hope to expand the production of custom machined parts that I offer on another site for 2011 and increase the size of my Machine Shop, and possibly get out of the Motorcycle Repair Business, but that depends on a lot of things, mostly money. Sorry to get off topic here, my pain med must have kicked in!:confused24:

Earl

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I won't work on a Harley either. Just digging around for the SAE tools takes too darn long. Besides, during the season I have enough metric work to keep me plenty busy. Also, there is a shop 1/2 mile away that only does Harleys. They send me the metrics and I send them the Harleys.

 

I couldn't pay the rent at $30. I suspect your fixed costs are much lower than mine.

 

In the interest of full disclosure I've run at $60 the last two seasons. The Harley shop up the road is $70. The only metric dealer within 20 miles was at $90 last time I checked.

 

The other variable is how much time is billed. I bill flat rate and generally use factory warranty labor +25%. Sometimes I make out on that, but generally I work more than gets billed.

 

One thing I learned really quickly is to charge a diagnostic fee (1 hour labor) which is credited to the job if I do it. I had too many people bring me a bike that wasn't running, I'd diagnose it and then when I quoted it get an answer like: "Oh, if that's all it is I can just do it myself."

 

It sounds like you have found a "good level" already. I would maybe do a $5 hr bump. Not that big of a deal to the customer, but it adds up over time (no pun intended). I did something similar with our business and nobody even noticed the price change.

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