Labor rates
Printed From: Unofficial Allis
Category: Allis Chalmers
Forum Name: Farm Equipment
Forum Description: everything about Allis-Chalmers farm equipment
URL: https://www.allischalmers.com/forum/forum_posts.asp?TID=134478
Printed Date: 06 Nov 2025 at 4:53pm
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Topic: Labor rates
Posted By: JD Dan
Subject: Labor rates
Date Posted: 31 Jan 2017 at 4:27am
| How do you folks in the repair business handle your shop rates when a customer prices parts- tires in this case- a couple of times then decides to buy them elsewhere but still wants you to mount them because your labor rates are cheaper? Normally I just go with shop rate x hours, but there are a few customers that want to call a couple times a week buy very little, and in this particular case the calls just result in me getting to do the grunt work on somebody else's part sale. Again, normally if a customer walks in with old rims and tires and New tires, I just mount them and charge whatever time it took... But there's a whole lot of time not getting billed here. Am I getting too grumpy in my old age? How do y'all handle this? How would those of you who are just on the customer end expect to be treated? |
Replies:
Posted By: rw
Date Posted: 31 Jan 2017 at 5:10am
| You may want to think about this in return on investment and risk taken. If you do the labor only at too low a rate and then have to do something over in "goodwill" at no charge you will find that unsustainable. Know your customers, bid your work on parts and labor together without listing each separate - Then be ready for a labor only bid if you want the work. The up side is you do not have to warrant the parts someone else supplied. Let the ones that want you to be their footstool walk. Helping others and yourself, being fair to others and yourself, the golden rule to others and yourself,,,,,,,,,,,,,, |
Posted By: Dan73
Date Posted: 31 Jan 2017 at 5:10am
| I am guessing you have one problem customer? I would delay with them tell them you are busy when they call and that you will get back to them. People usually get the point pretty quickly. |
Posted By: Dgrader
Date Posted: 31 Jan 2017 at 5:29am
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I'd give him a rate with him buying the tires from you and one without. Prices being pretty close together or the price without tires being considerably higher. If he don't like it you didn't need him anyway. ------------- Ya cain't fix stupid. |
Posted By: jaybmiller
Date Posted: 31 Jan 2017 at 6:27am
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I don't understand your 'shop rate'. Guys here are $100/hr(big shops more) . Doesn't matter if they do tire swaps,balljoints,sparkplugs...labour rate is what it is. Most get 'time to repair number' from some computer program. Where they 'win' is when the job takes less time than the 'book' says ,so if they're fast maybe 5 jobs done 4 jobs 'by the book'.That earns them $100 more (plus profit on parts) Where they lose is when the job takes longer (busted bolts !)and they're honest,then 2hrs of realtime is only charged as 1hr(according to the book). I've got 'problem' customers too..I just tell them I'm busy come back later,which is true most days though 'busy' can be subjective ! Interesting how ALL the 'problem' ones want stuff done for $20 and ME to supply free parts. There's fewer and fewer these days though...as I'm 'busy'. Jay ------------- 3 D-14s,A-C forklift, B-112 Kubota BX23S lil' TOOT( The Other Orange Tractor) Never burn your bridges, unless you can walk on water |
Posted By: WD45Diesel57
Date Posted: 31 Jan 2017 at 7:30am
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what use to get under my skin when I work at an automotive shop for awhile and under my bosses, is when the customer would supply his own parts he picked up cheaper to save a buck, 90% of the time it wasn't the exact part anyway. then have to deal with them when you spent the extra time and had to get parts anyway!!! Some people out there!! ------------- 1-B's, 2-C, 2-CA's,2-WF, 1-WC,1-G, 3-WD's, 2-WD45, 1-RC, 1-D17 Diesel, 1-D14, 2-D15,1-D17 row crop,1-D19 gas and All Crop 40,60,66,72,90 and 100 |
Posted By: Dans 7080
Date Posted: 31 Jan 2017 at 7:36am
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A buddy of mine ran a shop. He would take the mark up he would make on the parts and the labor he would charge anyway. And charge the customer that rate. Weather they got the parts from him or not that way he wasn't losing anything. ------------- When someone tells you Nothings Impossible, Tell them to slam a revolving door |
Posted By: Fred in Pa
Date Posted: 31 Jan 2017 at 7:40am
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Hang a sign and make sure u let them know you do not install their parts for regular shop rate. Like said if you do not get job, u did not need them anyways . ------------- He who dies with the most toys is, nonetheless ,still dead. If all else fails ,Read all that is PRINTED. |
Posted By: injpumpEd
Date Posted: 31 Jan 2017 at 7:49am
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Sounds like they are using you. Like stated above, you most likely don't need customers like that. I have been lucky, that I have a great group of customers, most of the time. I have had a couple act like jerks, and I simply will not tolerate that. My accountant told me when I first opened my own shop, "if you're getting more work than you can do, you're too cheap". At first, I kinda thought that was a little arrogant, but I was just starting out. Now, I can easily see, he was right, although, I have not raised my shop rate since I opened. Parts go up every year. I am busier than I like to be, but that is better than no work! ------------- 210 "too hot to farm" puller, part of the "insane pumpkin posse". Owner of Guenther Heritage Diesel, specializing in fuel injection systems on heritage era tractors. stock rebuilds to all out pullers! |
Posted By: JD Dan
Date Posted: 31 Jan 2017 at 8:04am
| For the most part we really do have a great bunch of customers. Appreciative of extra effort put forth to make their project come out right and willing to pay what it costs. But there are a couple that are just too time consuming. I understand wanting to save a few bucks, we all like that. I just fear telling a customer like it is and being viewed as a jerk that won't take the time or put forth the effort to do right by them. I sure don't want to be unfair to a customer in any way- hence my asking what everybody here thinks- but I can see the balance sheet not approving of an hour a week with the same guy on the phone for free. If that's generally expected, then I guess I'd just have to up labor rates to cover. Just don't want to make a decision in haste I'll later regret |
Posted By: Allis dave
Date Posted: 31 Jan 2017 at 8:28am
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Some tire shops here won't mount tires that they don't sell. There's a local tire wholesaler nearby that we have account with. We get tires without the markup, but the deal always is that when we buy tires from them, we have to install them ourselves. That keeps the local shops happy because we're not stealing their markup. Seems fair to me. |
Posted By: injpumpEd
Date Posted: 31 Jan 2017 at 8:34am
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JD used a couple of words I use frequently! Reasonable, and fair! Both terms work both ways too. I am unwilling to raise my labor rates and make everyone else cover the hours wasted by few. I just try to keep the wasted time down, but it is very difficult, especially when I am the lone wolf here lol! ------------- 210 "too hot to farm" puller, part of the "insane pumpkin posse". Owner of Guenther Heritage Diesel, specializing in fuel injection systems on heritage era tractors. stock rebuilds to all out pullers! |
Posted By: desertjoe
Date Posted: 31 Jan 2017 at 8:37am
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Hey JD,,,I also do some shade tree'in for people I know and "want" to help, but there will always be those that try to get to you,,and then,,there are those that actually do NOT have the funds to go else where, That I try to help. The Dealers "flat rate" here is $121/hour, and in some instances,,,can actually save you money as they can only charge you what the book says it should take to do the job. If the mechanic cannot fix your vehicle,,the flat rate says 2 hrs for the job,,in that 2 hours,,,,the dealer cannot charge you his actual time, even if it took him 6 hours!! In most cases,,I charge $60/Hr,,but, as I said,,I do charge some at the $30/Hr rate too. I DO NOT do any jobs where I install THEIR parts and I tell em so BEFORE I agree to do the job. I am very firm on this and They can go elsewhere if they insist on them buyin their parts. |
Posted By: shameless (ne)
Date Posted: 31 Jan 2017 at 9:44am
| shucks Joe....they just try'in to be like you! (poke,poke) |
Posted By: Dan73
Date Posted: 31 Jan 2017 at 9:48am
| Funny thing is the guy I work with is just the opposite he doesn't want to try and find old tractor parts so he refuses to get any parts I have to get everything. Same holds true with my truck parts. But then he knows I only buy quality cause I don't want to pay labor to take the cheap part back out and put the good one in later. |
Posted By: injpumpEd
Date Posted: 31 Jan 2017 at 10:00am
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supplying used obsolete parts is a whole different deal. ------------- 210 "too hot to farm" puller, part of the "insane pumpkin posse". Owner of Guenther Heritage Diesel, specializing in fuel injection systems on heritage era tractors. stock rebuilds to all out pullers! |
Posted By: Butch(OH)
Date Posted: 31 Jan 2017 at 10:05am
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While I am certainly no expert I did run my own shop for years and dealt with the cheapest of the cheap, gun owners. I had figured that there will always be somebody willing to shuffle parts across the counter for cheapo money and I was right, and you cant change that. Like you I would price a job parts and labor and people would shop the parts , go buy them at Midway or the like and bring them in expecting me to do the labor portion only,, Grrr. So the first thing I tried was price parts at basically a break even price and upped labor so my net remained the same. Then I had people wanting to buy the parts and take them elsewhere to be installed, Grrr. Finally settled upon a policy that I would not install customer supplied parts except under certain circumstances and hung a big sign by the door so nobody could claim to be surprised by it. Told those that didn't like that policy to not let the door smack'em in the butt when they left. There is a flock of people around looking for someone to do their work for nothing. My theory is if I am not going to make anything I am going to sit in a chair and relax. If your good at what you do people will come to your shop and pay your rates, however if your reputation is working for cheap, that's what people will expect when they come knocking and the cheapskate flock WILL find you. I dont work on guns any longer but still have my machine shop. I bought a horizontal boring mill a few years ago because I could not get my own work done that needed to be preformed on one. Now I have a backlog of bore and sleeve work, mostly on antique engines. Last fall I quoted a guy $XXX to supply install a sleeve in a 8HP Witte. He shows up a month later with the engine,,, and a sleeve in a box. Wants to know how much I will knock off the job. Told him to take the sleeve home with him, or the entire job, whichever made him happy. He took it all home and I still have 3 months worth of work lined up to do on that machine. Again moral of the story is be good at what you do and the heck with the cheapskates. |
Posted By: TimNearFortWorth
Date Posted: 31 Jan 2017 at 10:06am
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Use to be a pretty common sign that you can likely find or have made reasonably. If memory serves, showed a nice plate with eggs and bacon and said something like "Would you take your own food to a restaurant for them to cook? Don't expect us to use someone else's parts for your repair" A shop that showed that signage usually also had another one referencing credit that was also highly visible, "We require payment at time of pickup. If you want credit, go to Helen Waite, our credit officer". A novelty? Maybe to some but most got the point and did not even ask! |
Posted By: Acdiesel
Date Posted: 31 Jan 2017 at 10:57am
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WORK IS WORK, I CHARGE $35 PER HOUR NO MATTER WHAT THE JOB. IF THEY SUPPLY THE PARTS THAT'S GOOD FOR ME, ( THE LESS WORK i HAVE TO DO WITH PHONE CALLS AND CHASING AFTER THEM) IF I HAVE TO BUY THE PARTS I ONLY CHARGE THEM FOR THE PRICE OF THE PART, NO MARK-UP. AND I DO LOOK AROUND FOR THE BEST PRICE. I HAVE PLENTY OF CUSTOMERS AND NEVER ANY COMPLAINTS AND MOST PAY ME MORE THEN THE AMOUNT ON THE INVOICE. ( USUALLY $10 OR $20) JUST MY 2 CENTS DAN ------------- D19 Diesel,D17 Diesel SER.3 2-D14, 2-D15 SER.II WF/NF D15 SER.2 DIESEL D12 SER.I, D10 Ser.II 2-720'S D21 Ser. II Gmc,caterpillar I'm a pharmacist (farm assist) with a PHD (post hole digger) |
Posted By: Tbone95
Date Posted: 31 Jan 2017 at 11:09am
Most pay you more than the invoice?! Holy crap, now that's a new one....I've brought the shop a bag of donuts or something the following day. Never have just paid more nor seen anybody do so, let alone "most". Nice... |
Acdiesel wrote:Posted By: Stan IL&TN
Date Posted: 31 Jan 2017 at 11:16am
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I guess I need to tip my mechanic next time because I have supplied a part or two for him on occasion but never did it to save money, was doing it to help him out from having to call and make a run to get the part. Maybe if I do that again I'll ask him to double the rate as he is very reasonable? ------------- 1957 WD45 dad's first AC 1968 one-seventy 1956 F40 Ferguson |
Posted By: Dan (SE MI)
Date Posted: 31 Jan 2017 at 11:18am
| Why not raise your labor rate and offer a "discount" if tires are purchased from you? That way your customers that show up with their own tires don't feel like they are being overcharged (assuming you want to keep these customers) and your full service customers are paying your regular rate, but may feel like they are getting a deal. |
Posted By: injpumpEd
Date Posted: 31 Jan 2017 at 11:25am
this is fine if you don't stock the parts. My shop has a lot of parts in inventory, so in order to pay for that inventory, I have to mark up the parts, and also to cover the shipping expense. I have over $50k in inventory though! Also, like said above, If you're doing something for little to no gain, then why do it? One of my popular phrases is, "I can do nothing for free, so why bust my arse for nothin". ------------- 210 "too hot to farm" puller, part of the "insane pumpkin posse". Owner of Guenther Heritage Diesel, specializing in fuel injection systems on heritage era tractors. stock rebuilds to all out pullers! |
Posted By: Amos
Date Posted: 31 Jan 2017 at 11:30am
| The shop I am working in, when it comes to tires, they are flat rate...repair is $XX, plus the boot or patch or plug, etc. A new tire is mounted for $XX and installation on the vehicle is $XX. They make NO money on tires period. Scary really. But repairs to truck vehicles, equipment are billed $XX per hour and the hours are determined by how long the job takes the mechanic doing it. Seems fair to me. |
Posted By: TimNearFortWorth
Date Posted: 31 Jan 2017 at 11:40am
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I have bumped up payment on an invoice or two over the years as the work was performed far cheaper than any other quotes, and I knew it was done right. If an invoice seems low to me, I always ask if they feel they covered everything on their charges as I want to be fair plus good reputable shops for working on these older units are getting scarce. Ran the little D12 over to a fella's shop after reassembly as the fence row find shown the tranny/rear to be in hardly used condition when initially inspected. But she had a slight growling we could not nail down. This ex A-C mechanic split it and built a bushing for the quill shaft and called me the next day saying it was ready. Colder than a witches boob in a brass bra that day but he mentioned his wife was on him to "till" up about a 1/2 acre garden next to his shop they had not used for years. Since the engine had about 30 mins. on it (built by someone else), asked him for his preferred break-in method. Told me he knew who did the engine work (complimented his machine shop)and advised I should get her warmed up and start working her through the gears in stages as she was worked. Asked if he had a small disc and we dug one out of the briars behind his shop and I froze my but off chopping up his wife's vegetable plot. Turned it to powder for him and he came out occasionally to adjust the carb and gov'ner and check the little gal with his temp gun. Thanked me and then checked my valve clearance and double checked my torque on head before I loaded her on the trailer. Think of him when I walk by that D12 in the shop as we lost a good man to cancer about a year after he fixed that bushing. |
Posted By: JD Dan
Date Posted: 31 Jan 2017 at 11:44am
| Ed, that was part of what irritated me. We are expected to stock the parts, about 50k New, 40k used, 70k whole units, 100k consignment machines, and if I don't have the part on hand when needed I ship it to their house and I eat shipping, tires I have same day if ordered by 5am.... But....that isn't always enough I guess |
Posted By: Hubert (Ga)engine7
Date Posted: 31 Jan 2017 at 12:40pm
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Been using the same tire shop for years and I buy my tires from him if he has what I need but if I buy from somewhere else either they mount them or I do it myself. I do bring my own oil and filter and he does the labor on the oil changes and he is good with that but any other work he supplies the parts. He is not always the least expensive on tires but I am willing to pay more to get good service. One caution about installing tires from somewhere else is that you may be assuming part of the liability if a tire is defective and causes injury. From a customer's viewpoint I respect the mechanic's right to make a reasonable profit on parts to cover overhead, etc. One thing that irritates me is for a shop to tell me to bring it on in and then take hours or days to get the job finished. If you are too busy just let me know and I will wait or make other arrangements if I am in a hurry. ------------- Just an old country boy saved by the grace of God. |
Posted By: Joe(OH)
Date Posted: 31 Jan 2017 at 2:25pm
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Tire shop by me that I usually do business with charges more if you bring your own new tires in to be mounted. Brought some atv tires in and they charged me enough to make up the difference from not buying from them. ------------- Life is simpler when you plow around the stump. |
Posted By: shameless (ne)
Date Posted: 31 Jan 2017 at 8:01pm
| if it ever came down to where i'd hafta pay that outrageous shop price, that mechanic is gonna get the chit job! |
Posted By: DougG
Date Posted: 31 Jan 2017 at 8:39pm
| I would never think of bringing New tires that I've bought cheaper to a place that sells tires, mounts them and is in business, especially if I'd see them in town!That's just not right! |
Posted By: Ray54
Date Posted: 31 Jan 2017 at 8:46pm
| Somebody been doing to much nothn? Must of been to busy to take a nape with the puppies???? |
Posted By: Acdiesel
Date Posted: 01 Feb 2017 at 3:56pm
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i work on everything and anything, from chain saws to lawn mowers to semis and everything in between. I also do a lot of maintenance/repairs on the local fire department trucks, which i'm also on. my shop is just a side job, between my regular job and farming 800 acres with my buddy. just do because my wife stays home with the kids, its extra income. wife said that i should just raise my rates, but lower rates are why people come to me, and because i'm straight forward with people. they don't have to wonder about the work being done. i don't stock parts, just supply's. ( i do charge for freight on parts) if your shop is your only source of income and people are coming to you because they know you do good work for a good price and you feel that your being taken advantage of then maybe it's time to raise your rates. once again just my thoughts. ( don't mean to offend any one, if i did) dan ------------- D19 Diesel,D17 Diesel SER.3 2-D14, 2-D15 SER.II WF/NF D15 SER.2 DIESEL D12 SER.I, D10 Ser.II 2-720'S D21 Ser. II Gmc,caterpillar I'm a pharmacist (farm assist) with a PHD (post hole digger) |
Posted By: bradley6874
Date Posted: 01 Feb 2017 at 4:47pm
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If you mount his tires and a week later say one goes flat he brings it back to you ,say Side wall has a blemish inside that ruined the tube now who s responsible if the tire co won't stand behind the tire and tube because the didn't mount them ? And who pays you to remove and buy another tire and tube to get the Cust moving again. I do hvac work. We can't install any parts bought by the Cust because of our warranty on labor it says on our tickets Cust supplied or installed parts void all warenty's if I go to a house and Cust has worked on equipment iam supposed to take pictures of what's been done and leave.... pictures go in the file under liability call ------------- You can wash the dirt off the body but you can’t wash the farmer out of the heart and soul |
Posted By: HudCo
Date Posted: 02 Feb 2017 at 10:55am
| first of all if your labor and parts is not with in a buck of other places you are losing, but there nothing wrong with having specails , but you have to stay with the times with training, equipment and knowlage or data so it can be done correct and warrantable and timley. if not the other shop will just keep getting bigger and better and you will be gone . we do not waste time on peoples own parts because we cannot warranty them and usaully they are incorrect and of poor quality. we have larger customers that some time s we have them get the parts that we do not handle but usallay i still do the odrering for them so i get what we need , that will be charged out hourly labor and shop fees that applly |
Posted By: DennisA (IL)
Date Posted: 02 Feb 2017 at 1:30pm
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Several shops by us actually charge 20% to 40% extra for "problem customers " ------------- Thanks & God Bless Dennis |
Posted By: Dave in PA
Date Posted: 02 Feb 2017 at 4:35pm
| Different type work for me, but the same type issue. I do home restoration work, and EVERY time the customer buys the materials, is wrong, missing something, and cost more money for us, and more delays, that THEY, don't want to here about! |