Comments on: Flat rate pay system explained for Subaru owners…LONG POST http://www.smart-service.com/blog/2010/01/flat-rate-pay-system-explained-for-subaru-owners-long-post Wed, 01 Feb 2012 18:29:44 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Mike Corbin http://www.smart-service.com/blog/2010/01/flat-rate-pay-system-explained-for-subaru-owners-long-post/comment-page-1#comment-7355 Mike Corbin Mon, 12 Sep 2011 17:37:15 +0000 http://www.smart-service.com/blog/?p=102#comment-7355 Well said Donald. That is one of the deciding factors of why I went into business for myself. The spread of what is billed to a customer vs what is paid to the mechanic was obviously becoming worse for the technician as the years went by and the dealers tried to keep more for themselves. It was always funny when they would raise the labor rate by $2 or $3 per hour because their other operational expenses were increasing but they would not pass any along to their technicians. They always could put a spin on it that justified why they did it. I was at a dealer that went up over $12 per hour to the customer over a 2 year span but the pay to the technicians was never increased. The whole group of technicians decided one morning to just sit on their tool boxes and not work at all until they were given something. Needless to say, when management got wind of this they made a last minute move that bumped everyone by a buck or two per FR hour. Too bad it had to come to that but it was great to see what could happen when a group of guys that weren't union decided enough was enough. Take care, Mike Corbin Smart Service Well said Donald.

That is one of the deciding factors of why I went into business for myself. The spread of what is billed to a customer vs what is paid to the mechanic was obviously becoming worse for the technician as the years went by and the dealers tried to keep more for themselves.

It was always funny when they would raise the labor rate by $2 or $3 per hour because their other operational expenses were increasing but they would not pass any along to their technicians. They always could put a spin on it that justified why they did it. I was at a dealer that went up over $12 per hour to the customer over a 2 year span but the pay to the technicians was never increased. The whole group of technicians decided one morning to just sit on their tool boxes and not work at all until they were given something. Needless to say, when management got wind of this they made a last minute move that bumped everyone by a buck or two per FR hour. Too bad it had to come to that but it was great to see what could happen when a group of guys that weren’t union decided enough was enough.

Take care,

Mike Corbin
Smart Service

]]> By: DONALD j. Wambach SENIOR MASTER TECH,SUBARU, TOYOTA, JAGUAR, http://www.smart-service.com/blog/2010/01/flat-rate-pay-system-explained-for-subaru-owners-long-post/comment-page-1#comment-7330 DONALD j. Wambach SENIOR MASTER TECH,SUBARU, TOYOTA, JAGUAR, Sat, 10 Sep 2011 14:14:46 +0000 http://www.smart-service.com/blog/?p=102#comment-7330 FLAT RATE TECHS: NO ONE HAS MENTIONED THE FACT THAT THIRTY YEARS AGO LABOR RATE FOR REPAIRING AN AUTO WAS AROUND 35.00 AND HOUR. MECHANICS GOT 50% OF THE LABOR CHARGED TO THE CUSTOMER IN THOSE THIRTY YEARS LABOR RATE HAS INCREASED TO 85-OVER A 100 DOLLARS AN HOUR . MEANWHILE OUR PAY THE MECHANIC WAS REDUCED TO 45% THEN 33% NOW IT HOVERS AROUND 21.76 % PER FLAT RATE HOUR. THAT COMES OUT TO BEING PAID 1980 WAGES, FLAT RATE OR NOT. NO ONE HAS DECREASED THE COST OF LIVING OR THE TOOLS WE NEED TO BUY AND MAINTAIN. OVER 50,000 WORTH.SO WE HAVE BEEN REDUCED BUSTING OUR BUTS, FOR THE DEALERSHIP, AT 1980 WAGES, YEA FLAT RATE DOES"NT DO ANY ONE ANY GOOD EXCEPT THE OWNERS OF THE SHOP. IT IS A SHAME THAT TECHS TODAY CANNOT GET PAID A JUSTIFIABLE FINANCIAL REWARD FOR A JOB WELL DONE. YOU WILL NEVER GET A TECH TO SLOW DOWN AND TAKE HIS TIME ON ANY JOB AS LONG AS HE IS FLAT RATE AT 1980 WAGES. DUH FLAT RATE TECHS: NO ONE HAS MENTIONED THE FACT THAT THIRTY YEARS AGO LABOR RATE FOR REPAIRING AN AUTO WAS AROUND 35.00 AND HOUR. MECHANICS GOT 50% OF THE LABOR CHARGED TO THE CUSTOMER IN THOSE THIRTY YEARS LABOR RATE HAS INCREASED TO 85-OVER A 100 DOLLARS AN HOUR . MEANWHILE OUR PAY THE MECHANIC WAS REDUCED TO 45% THEN 33% NOW IT HOVERS AROUND 21.76 % PER FLAT RATE HOUR. THAT COMES OUT TO BEING PAID 1980 WAGES, FLAT RATE OR NOT. NO ONE HAS DECREASED THE COST OF LIVING OR THE TOOLS WE NEED TO BUY AND MAINTAIN. OVER 50,000 WORTH.SO WE HAVE BEEN REDUCED BUSTING OUR BUTS, FOR THE DEALERSHIP, AT 1980 WAGES, YEA FLAT RATE DOES”NT DO ANY ONE ANY GOOD EXCEPT THE OWNERS OF THE SHOP. IT IS A SHAME THAT TECHS TODAY CANNOT GET PAID A JUSTIFIABLE FINANCIAL REWARD FOR A JOB WELL DONE. YOU WILL NEVER GET A TECH TO SLOW DOWN AND TAKE HIS TIME ON ANY JOB AS LONG AS HE IS FLAT RATE AT 1980 WAGES. DUH

]]> By: Mike Corbin http://www.smart-service.com/blog/2010/01/flat-rate-pay-system-explained-for-subaru-owners-long-post/comment-page-1#comment-1424 Mike Corbin Thu, 16 Sep 2010 17:57:42 +0000 http://www.smart-service.com/blog/?p=102#comment-1424 Mike, Great to hear from you. I'm glad to hear you're doing well. Keep in touch, Mike Corbin Smart Service Independent Subaru Expert Mike,
Great to hear from you. I’m glad to hear you’re doing well.

Keep in touch,

Mike Corbin
Smart Service
Independent Subaru Expert

]]> By: Mike Carroll http://www.smart-service.com/blog/2010/01/flat-rate-pay-system-explained-for-subaru-owners-long-post/comment-page-1#comment-1399 Mike Carroll Tue, 14 Sep 2010 16:24:46 +0000 http://www.smart-service.com/blog/?p=102#comment-1399 Hi Mike I totally agree with what you have to say with regards to flat rate vs. hourly. I have now been in the industry for over 14 years now and have been on both sides of the fence. Sadly, I have seen too many shortcuts from flatraters that have caused damage and been actually threatened myself from bosses to be fired for not being efficient enough. Currently I work for a great employer that strongly believes in quality and my co-workers and myself are paid hourly. Thank you for being the honest person that you are and for the training you gave me. Hi Mike I totally agree with what you have to say with regards to flat rate vs. hourly. I have now been in the industry for over 14 years now and have been on both sides of the fence. Sadly, I have seen too many shortcuts from flatraters that have caused damage and been actually threatened myself from bosses to be fired for not being efficient enough. Currently I work for a great employer that strongly believes in quality and my co-workers and myself are paid hourly. Thank you for being the honest person that you are and for the training you gave me.

]]> By: Mike Corbin http://www.smart-service.com/blog/2010/01/flat-rate-pay-system-explained-for-subaru-owners-long-post/comment-page-1#comment-1091 Mike Corbin Mon, 09 Aug 2010 17:35:51 +0000 http://www.smart-service.com/blog/?p=102#comment-1091 I agree wholheartedly. Point well made. Mike I agree wholheartedly. Point well made.

Mike

]]> By: Hi http://www.smart-service.com/blog/2010/01/flat-rate-pay-system-explained-for-subaru-owners-long-post/comment-page-1#comment-1059 Hi Fri, 06 Aug 2010 00:54:05 +0000 http://www.smart-service.com/blog/?p=102#comment-1059 I worked at a dealership and completely agree. Techs are often left exhausted at the end of the day, OR they don't bring home the money, OR they sit there all day doing nothing. It's a very draining way to work, whether you make more than hourly or not... it takes it toll unequally. You are either BUSTING your ass or waiting around hoping that you can pay your bills.... especially how the auto industry has been the past few years. If the system is set up for jobs that don't pay enough for thorough work.... that is where it hurts the most, especially when the techs get yelled at for shipping the car out even after they spent more time on it then they got paid for. I worked at a dealership and completely agree. Techs are often left exhausted at the end of the day, OR they don’t bring home the money, OR they sit there all day doing nothing. It’s a very draining way to work, whether you make more than hourly or not… it takes it toll unequally. You are either BUSTING your ass or waiting around hoping that you can pay your bills…. especially how the auto industry has been the past few years. If the system is set up for jobs that don’t pay enough for thorough work…. that is where it hurts the most, especially when the techs get yelled at for shipping the car out even after they spent more time on it then they got paid for.

]]> By: Mike Corbin http://www.smart-service.com/blog/2010/01/flat-rate-pay-system-explained-for-subaru-owners-long-post/comment-page-1#comment-672 Mike Corbin Tue, 25 May 2010 16:20:47 +0000 http://www.smart-service.com/blog/?p=102#comment-672 Thanks for the response. I guess we'll agree to disagree. Thanks for the response. I guess we’ll agree to disagree.

]]> By: Jason in FL http://www.smart-service.com/blog/2010/01/flat-rate-pay-system-explained-for-subaru-owners-long-post/comment-page-1#comment-614 Jason in FL Tue, 18 May 2010 19:40:59 +0000 http://www.smart-service.com/blog/?p=102#comment-614 I disagree with your analysis of flat rate vs hourly. What I do know is that we have both hourly and flatrate techs at our dealership. It is the choice of the technician. I have class A technicians on both hourly and flat rate. What I have found at year end is that all of the flat rate tech have nearly double the income as the hourly techs. I had four tech earn over 100,000 for the year. That is good money in this area considering there are very few constrution or manufacting jobs in the area. I agree that it is more job quality is more important than job speed. Quality is what builds reputations. And if our dealership doesn't do the job right the first time we will be fixing it again for free. If one tech did poor quailty work he would be written up. If it occured serveral times he would be terminated. Weather he was flat rate or not. The flat rate tech doesn't want to fix the same vehicle a second time for free. So it is in his best interest to do the job correctly the first time. As for cleaning off the valve covers, that is just a matter of expecations from the service manager. If QC knows that they are expected to look clean, it would have been done before it left the shop. I blame that on the service manager for not communucating the proper expectations. I disagree with your analysis of flat rate vs hourly. What I do know is that we have both hourly and flatrate techs at our dealership. It is the choice of the technician. I have class A technicians on both hourly and flat rate.

What I have found at year end is that all of the flat rate tech have nearly double the income as the hourly techs. I had four tech earn over 100,000 for the year. That is good money in this area considering there are very few constrution or manufacting jobs in the area.

I agree that it is more job quality is more important than job speed. Quality is what builds reputations. And if our dealership doesn’t do the job right the first time we will be fixing it again for free. If one tech did poor quailty work he would be written up. If it occured serveral times he would be terminated. Weather he was flat rate or not. The flat rate tech doesn’t want to fix the same vehicle a second time for free. So it is in his best interest to do the job correctly the first time.

As for cleaning off the valve covers, that is just a matter of expecations from the service manager. If QC knows that they are expected to look clean, it would have been done before it left the shop. I blame that on the service manager for not communucating the proper expectations.

]]> By: Mike http://www.smart-service.com/blog/2010/01/flat-rate-pay-system-explained-for-subaru-owners-long-post/comment-page-1#comment-141 Mike Tue, 12 Jan 2010 15:47:06 +0000 http://www.smart-service.com/blog/?p=102#comment-141 Mike, I agree with your comments on flat rate. When I took my Subie in to the local dealer (you are too far away unfortunately!) they changed the valve cover gaskets. None of the valve covers were cleaned while they were off! A quality tech would have cleaned the removed cover in a parts washer before reinstalling it. That would eat into this Flat Rate pay I guess. I wish there was a quality independent Subaru service center in my area. I have to do my own work to get quality. Thanks for a Great Blog and info. Mike in N KY Mike,

I agree with your comments on flat rate. When I took my Subie in to the local dealer (you are too far away unfortunately!) they changed the valve cover gaskets. None of the valve covers were cleaned while they were off! A quality tech would have cleaned the removed cover in a parts washer before reinstalling it. That would eat into this Flat Rate pay I guess.

I wish there was a quality independent Subaru service center in my area. I have to do my own work to get quality.

Thanks for a Great Blog and info.

Mike in N KY

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