Labor rates ?????
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[b]ding wrote:[/b]
just remember doright if you are getting $50hr to change a fender that the book pays 2.5 hours for and you do it in 1.5 hours you still get paid for that 2.5hours worth of work. book time is a lot easier to make in the body shop than the mechanical shop.
the estimate on the trailblazer i just fixed had 23.7 hours on it. I did the job in under 10hours
even though the estimate paid $50 hour I made over $118hr
really its simple. your making it complicated[/quote]You practically took the words out of my mouth. I work at a dealer…mechanical rates are about $50/hr MORE than the body shop. The mechanics cannot produce as much work (based on book time). Thus I am happy to make less on an hourly basis since I know I can usually do really well with the hours.
Insurance companies know that. That is why they pay less, but are generally ok with the times charged for repairs.
[b]ding wrote:[/b]
[quote]The $30 hr paint and materials is not the labor rate for the paint. its the allowance for paint and materials based on refinish hours on the estimateso lets say a basic estimate
replace fender 2.5hr
refinish fender 1.9hr
clear fender .8hr
————————–body labor 2.5hr at $50 hr : $125
refinish labor 2.7hr at $50hr : $135
paint+materials 2.7hr at 30hr : $ 81
—————————————-total labor : $260
paint materials: : $ 81
—————————————–
cost of repair: : $341just remember doright if you are getting $50hr to change a fender that the book pays 2.5 hours for and you do it in 1.5 hours you still get paid for that 2.5hours worth of work. book time is a lot easier to make in the body shop than the mechanical shop.
the estimate on the trailblazer i just fixed had 23.7 hours on it. I did the job in under 10hours
even though the estimate paid $50 hour I made over $118hr
really its simple. your making it complicated[/quote]As a Mechanic I know I can beat the book on jobs I have done before that’s how you make money 👿 But still I figure you gave away 2.7 hr of labor at 20 hr :blink: and gave your materials away! at less or at cost :S :blink: :huh:
Just me But I am not going to follow this trend the insurance companies can Kiss my :cens[b]Jayson M wrote:[/b]
[quote]It’s not as simple as “giving the insurance compainies a break”they dictate what they will pay for labor to the shops.The whole problem started with the DRP program with insurance companies and the shops.The other problem is if everyone got on the same page there is always some dork hack shop down the street who will undercut all the shops who “banned together” so they can get all the work.Unfortunately this has been a problem for many years,lots of shops have gotten rid of the drp program and the price is what it is.[/quote]Insurance companies may think they are dictating But its the customers choice were they take there car for repair and what gets fixed and how and all want it fixed right 😛
As far as the Hack down the street He’s still a Hack and the customer is going to get what he pays for and bring it too you to get it fixed right!
And then there is always :whistle: :whistle: :whistle: 👿The one thing that everyone here doesn’t seem to grasp is that compared to inflation, the labor rates are severely depressed compared to virtually every trade. Add in that there’s been a downward progression of labor times for more technically advanced repairs only adds to the problem. Everybody justifies it by saying they beat book time, But really, book times are based on an average technical skill set. If you’ve been doing this for years, most technicians should be considered advanced, and be able to beat the time with the tools they have aquired.
Insurers are fully aware of the labor rate multiplier, and have been exerting pressure on those also. How come they all came up with that crap refinish within panel, yet they still won’t pay for prime and block (here at least). They’ve also been trending more towards real time when repairs are figured.
To me. A major rate increase would be justified to cover our investment and liabilities, But were stuck “asking” for more from a stingy entity watching out for their own pursestrings.
As far as Customers being in charge, well, Most don’t want the battle necessary to take the insurer to task. And they sure don’t want to pay anything over their deductible. Half the time they don’t even want to pay that.
Just my thoughts.
Labor rates…yeah, it use to be an issue many years ago. There’s no point
in getting worked up over it. It’s counterproductive. Just work the system.
And, more importantly, advance your knowledge and skills.[b]Kevin Campbell wrote:[/b]
[quote]The one thing that everyone here doesn’t seem to grasp is that compared to inflation, the labor rates are severely depressed compared to virtually every trade. Add in that there’s been a downward progression of labor times for more technically advanced repairs only adds to the problem. Everybody justifies it by saying they beat book time, But really, book times are based on an average technical skill set. If you’ve been doing this for years, most technicians should be considered advanced, and be able to beat the time with the tools they have aquired.Insurers are fully aware of the labor rate multiplier, and have been exerting pressure on those also. How come they all came up with that crap refinish within panel, yet they still won’t pay for prime and block (here at least). They’ve also been trending more towards real time when repairs are figured.
To me. A major rate increase would be justified to cover our investment and liabilities, But were stuck “asking” for more from a stingy entity watching out for their own pursestrings.
As far as Customers being in charge, well, Most don’t want the battle necessary to take the insurer to task. And they sure don’t want to pay anything over their deductible. Half the time they don’t even want to pay that.
Just my thoughts.[/quote]
good post kevin :woohoo: :cheersI have been painting for about ten years now. 5 years ago or so I could get real close to turning 200% efficiency. NOT ANY MORE! I have seen the ins. companys cut paint time majorly around here. We as a shop have to be loosing money on some jobs that we do due to the fact that the labor is cut so low which in turn makes the material rate low. Now in the body shop….thats a different story. I see the repair times are going up. I have seen entry level techs come in and hit 200% quite often in the body shop.
As far as baning to gether with other shops, I think that is illegal? I think its called price fixing? Yes we do need to raise the rates, Yes the ins. companys are running the show. Thats the damage of the DRP! Something needs to change, how we can do it? Im not sure. 😛
[b]Underpaid Painter wrote:[/b]
[quote]As far as baning to gether with other shops, I think that is illegal? I think its called price fixing? Yes we do need to raise the rates, Yes the ins. companys are running the show. Thats the damage of the DRP! Something needs to change, how we can do it? Im not sure. :P[/quote]Nothing illegal about a Union!
Guys wanna make more But heck how can you if the shop doesnt???48 an hour here, we get alot of deduct for overlap on safeco jobs, painters are pist! so i write a high supp on bodywork to make up the difference, then give it to the estimater he cries i can’t get that much time! my boss twice daily tells me he’s broke and has no money, kinda sick of hereing his crap! everytime i go in the office the manager and estimater are playing facebook games :cens sorry guys i had to vent :unsure:
there’s room there :pcorn: when you go back stage …. smoke and mirrors, only work on the audience. :pcorn: :whistle:
We are at $48/$48/$30 here in my part of New Mexico. That has largely been dictated by the insurance companies in what is “market rate” for this area.
I am in San Diego… We get $58.00 for body/paint. $38.00 for paint materials. %80.00 for frame. And %115.00 for mechanical. Mechanical might be a lot higher, but when an operation/s pays ten hours in mechanical, it is my understanding that you spend much more of that ten hours to complete the job than we do. Most experienced body/paint technicians can finish a 10 hour job in 2.5 to 3 hours, or less with good help :whistle: . Also, body/paint technicians get a bigger percentage of the labor rate the mechanics do (usually anywhere from 33-40%). I don’t personally know ANY mechanics in my company (or any other company) that make 33-40% of the $115.00 per hour that the shop charges.
$54/hr RF, $54/hr Body, $34/RF hr Materials around here
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