Labor Rate

Jacob Loof · Jul 22, 2011

Hi i am a new mechanic and i am wondering what would be a fair rate to do labor for farm machinery .. I have a buddy that charges 45 per hour i dont wanna screw people but i dont wanna give away what i paid good money for the knowledge aspect ?

After All I Have A Family To Feed Too And Liabilty Insurance Will Have To Be Bought !

rustyfarmall · Jul 22, 2011

(quoted from post at 13:42:18 07/22/11) Hi i am a new mechanic and i am wondering what would be a fair rate to do labor for farm machinery .. I have a buddy that charges 45 per hour i dont wanna screw people but i dont wanna give away what i paid good money for the knowledge aspect ?

After All I Have A Family To Feed Too And Liabilty Insurance Will Have To Be Bought !

Most of the dealer shops were at $60 per hour several years ago. Might be at $80 now.

Jacob Loof · Jul 22, 2011

well i know dealers have more overhead to pay for but i am wondering what most people would be comfortable paying

rustyfarmall · Jul 22, 2011

(quoted from post at 13:51:29 07/22/11) well i know dealers have more overhead to pay for but i am wondering what most people would be comfortable paying

Whether you are working in your own shop, or driving to the repair job, you still have overhead and if you don't factor that in, you will have very little money to put in your pocket.

I agree that $80 per hour is probably a bit too much, but I also think $45 per hour is a bit on the low side.

Jacob Loof · Jul 22, 2011

Thanks for your input i was thinking some where around 50 to 60 and then do some sort of survey of what they think my time is worth i know for sure one farmer i did oil changes for and stuff like that they paid me 9 bucks a hour and i was thinking to myself i chased ten miles to come here to change your oil and filters for ten dollars ?? The math dont add up thats atleast 4.00 for gas round trip and wrench on a old john deere for 6 bucks .

But i have also lost customers because they think 15 dollars a hour to weld is too much why dont these people understand the meter spins faster to weld and the overhead but you want me to do it for FREE

mike paulson · Jul 22, 2011

here in NY state(not the city) you can expect to pay 90 to 110 bucks an hour at a JD dealership. as a private shop kinda guy i would say most of them are around 80 to 90.
as a mechanic you should also charge list price for parts you use including fluids etc. and charge as much as you can get away with, being a mechanic has become a specialized trade, we are a dying breed and good techs are becoming few and far between.
with all that being said you can really lose yer shirt as a mechanic with things like the higher tech electronic stuff and comebacks or misdiagnosis of things, or you can do pretty good with alittle luck, it aint easy brother good luck.

Tyler Jackson · Jul 22, 2011

Granted this is different but same work but the guy I pay to fix my trans in my old muscle car charges 75 an hour. I would agree with the 60 to 80 range. I would pay around that for a good mechanic.

IH fan · Jul 22, 2011

(quoted from post at 17:20:17 07/22/11) Granted this is different but same work but the guy I pay to fix my trans in my old muscle car charges 75 an hour. I would agree with the 60 to 80 range. I would pay around that for a good mechanic.

Read that last sentence again.... "a good mechanic". You may be a very good mechanic, but until you build or earn that reputation, you won't get any work at premium prices. I'd say starting in the $40 to 50 range should get you some work and as you "learn and earn" and better equip your shop, you can slowley increase your prices. Parts, you can always charge retail for and make a little by buying at a discount. JMO

dansuper27 · Jul 22, 2011

One aspect that you need to think about is for some of the work you would do like oil changes is to charge a flat fee to do the service. With those types of services then the customer knows what they are going to be charged. Most folks understand that rebuilds or troubleshooting can't be nailed down as to what the labor would be but I like shops that have split rate cards for routine services.

504 · Jul 22, 2011

I was in a glass shop today and they quoted a price of $45.00 to go out and measure the job, and $4.00 to cut the glass to fit(more labor and another service call if he wanted it installed) YOU have to charge enough to make money or you will not be in business for long. Also if you are the cheapest in your area, you will only get customers who just want cheap, and then will not be happy if you did it for free.

MattLan · Jul 22, 2011

Corret me if I am wrong, but since most dealers and mechanics went with computer ordering system right from the factory for parts and stuff, isnt there a program that tells them how many hours most jobs take?? Example, to replace a water pump on a Whatever tractor 3 hours. If you are charging $65 an hour you know it is a set price. I will pay more for a GOOD Mechanics that can get the job done.

I am currently working with my harley deal and it is $90 an hour, and per job. They dont know Manure and I am meeting with them tomorrow because they have charged me to do the same job twice and want to charge me again. Good Mechanics are worth the dollars, and if someone is not interested in paying then most of the time their stuff is not taken care of and will cause more headaches then you have time for.

Tyler Jackson · Jul 22, 2011

He could be a very good mechanic but I do agree with the starting price and raising. Just don't want to go to low or you'll have a bunch of junk sittin around. Have a local shop that just opened and I hear he's cheap and he's got a perpetual yard sale out front from the junk he gets in there

Jacob Loof · Jul 22, 2011

(quoted from post at 02:25:28 07/23/11) He could be a very good mechanic but I do agree with the starting price and raising. Just don't want to go to low or you'll have a bunch of junk sittin around. Have a local shop that just opened and I hear he's cheap and he's got a perpetual yard sale out front from the junk he gets in there

Thanks so far for all the advice on what to charge im thinking 55 seems to be a fair number after all i will be working at a dealership during the daytime hours hopefully atleast until i feel comfortable in my own business to take it on full time . I would also have to consider possibly raising my prices in the years to come to keep up with inflation and to keep up with the trend. I am also wondering what you people think about charging a shop fee . I have went and got oil changes done cause i was in a hurry and they charge a 2 dollar shop fee i was just wondering if 6 dollars seemed too stiff or not ?

Dean Olson · Jul 22, 2011

Do your research on all the costs your going to incur to be in business and set your labor rate accordingly.
Asking someone else is risky. They may have no idea what they are doing.

Get a flat rate book that has project times and material lists already in place.

I refuse to pay for anything by the hour anymore. I require that the job be bid so I can make an informed
decision. Asking your clients to to pay you by the hour is asking them to hand you over a signed blank
check.

Learn to bid every job. Get your clients to sign the paperwork approving the repairs and committing to
paying you when your done. You'll find out before you do the work if your going to get pd or not.

Good luck, It takes great courage,planning and hard work to be self employed.

Anonymous-0 · Jul 23, 2011

I have a 75.00 labor rate in my auto shop but only bid by the job,never do I work by the hour. Customers hate those "shop fees", just build that into your bids or shop rate instead if you need to. Always come in at or under bid to keep em happy and coming back,even if you have to eat a little on the job.And whatever you do , GET INSURANCE ! Good Luck !

Dean Olson · Jul 23, 2011

No shop fee, build it into your labor rate.

So your going to open a shop in direct competition with your employer??? Same kind of work??? If it's the same and you are competing with your boss don't expect to keep that job too long!!! Ethics of that are pretty low. How would you feel if one of your future employee's did you that way?

I started my plumbing business, doing general repair work, while doing water softener installations for a co that I was working for. I went to them and explained what I wanted to do and they agreed so long as I didn't do any water softener work.

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