Re: FLAT RATE - is it fair ?

Posted by Allan on October 24, 2003 at 17:29:27 from (148.63.132.164):

In Reply to: FLAT RATE - is it fair ? posted by Rookie on October 24, 2003 at 15:27:46:

Hi Rookie,

I've worked flat rate all my life....it is as fair as it is going to get.

Having said that, there are some problem areas.

Foremost of these is the customers understanding of how the system works. I think instead of calling it "hours", they should call it something different, like say, 'units'.

Here's how it works: The book says that an overhaul on an automaic transmission in a GMC Yukon should take 7.9 hours and it should take the tech and additonal 3.8 hours to R&R the silly thing.

That's the end of it; the customer should be billed 11.7 hours, whether the tech can pull it off in 8 hours or if it takes him 27.0 hours. The customer still pays that original 11.7 hours like the "Bible" says.

So, young Billy Bob Wrench does the job, he hasn't been doing this very long, and he screws up. He has to pull the thing again and reopen it. He spends 3 days on the thing and finally gets it correct.

He has lost his shirt because the customer still only gets billed that original 11.7 hours. After about 6 months of this, it dawns on young Billy he really should get good, or get out. He can't live on 2 days pay per week.

Now, take the guy who has been doing this all his adult life. He has learned these things inside out and knows all the little shortcuts to make the job go easier. He knows which tools to grab and knows each and every step he has to make. He knows what is wrong with the unit before he lifts a wrench because he has done 1000 of these repairs before. So, let's say then, he can do it in 5 hours.

He is making money because the customer still pays that original 11.7 hours.

What the term 'flat rate means' is: as far as the customer is concerned, is that "this" particular job should take "this" long to do, based upon a long, long history of this repair.

You speak of "extra time". This is usually only allowed in very small shops and then only after the customer gives his 'okay'. It is, really, kinda rare to see this practice.

As an aside: Also, there is the problem of diagnosing. Some pay it, some don't.

I worked for GM, who didn't. So, you learn very fast to know what is wrong with a mechanical system before you ever open it up. Time is money, and you can't afford to waste time.

Allan

Follow Ups:

• Re: Re: FLAT RATE - is it fair ? JOHN (LA) 05:43:38 10/25/03 (0)

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