The Flat Rate System Woes

[cashmoneyspeed]

I made some good money working flat rate at my first auto dealer. I had also negotiated a 36 hour guarantee so as long as i was there 40 hours, i got 36 hours pay. It came in handy doing jobs where there was 16 hour pay on the ticket like turbo replacement, transmissions, etc. i would just make sure the car wasnt "done" until i clocked in on the next weeks starting day. Sure it meant the customer waiting a day or three for the car but its how i paid off my student loans for tech school. Best 2 weeks was around 160 hours pay (straight time, no time n a half ) for maybe 85 hours work. "Flat lining" is what i referred to flat rate.

Now i get paid by the hour, over 40 is time n a half, plus commission each month, and year end bonus. I'm a water quality field service tech so nobody ever rushes me, i take as long as i need to get the job done right the first time, see the boss 5 min a week if that, and half the day is driving around listening to music. I also have leeway on what time i start, end my day, company truck, and I'm paid as soon as i leave my driveway. Much less stress mentally and physically. I build cars for the pure fun of it now.

 

[DRIVEN]

It totally depends on the shop you work for. When I first started turning wrenches I was hourly and worked for my uncle. It was under the table and he didn't pay me much but since I was young and single I didn't need much. He was a great boss and teacher but I had to move on after 5 rears.
The shop I ended up at next was an independent "family" shop. It was flat rate but the owner was constantly restructuring the pay and vacation systems -- always in his favor. That shop had a lot of turnover and I lasted 3 years.
I spent a few years working out of my own shop/garage but kept a low profile due to a couple nosy neighbors. I loved the freedom and stayed busy enough but ultimately went into a construction related field to appease a wife who wanted the "security" of a predictable pay check. After 5-6 years of that I was laid off as my employer went from 60 employees down to about 15. At that point I went back to working out of my home shop and,again, stayed busy enough to pay the bills. It was shortly after that I began to freelance at a buddy's shop filling in when techs went on vacation or when they were really busy. That eventually turned into a full time gig and I've been there for about 5 years. It's flat rate but with the advantage of the techs writing their own labor times. That takes some of the sting out of having a service writer or production manager under selling jobs. We still go by the labor guide but have a bit of flexibility. We're a small, busy shop and I would consider all of that staff to be well above average for the industry. The owner is pretty flexible and is generous with his equipment for us to use on personal projects. There is basically no drama related to shop politics. However, I think he's actually a bit below average in what he pays his techs and there are essentially no traditional benefits. I'm pretty much topped out unless I want to start working 12 hour days. I consistently flag about 120-125% with almost no comebacks.

So, in over 20 years in the business I've learned a few things. An honest tech will never get rich working flat rate. If you find the right shop you'll make a living and probably be comfortable enough. Tool boxes have wheels for a reason but shop hoppers get a reputation that is usually well-earned. In the automotive field it's pretty rare to find an hourly shop. I know of none around the Portland area that isn't some sort of restoration shop. Diesel shops pay hourly around here. I feel that under the flat rate system I have earned ever dollar I've made. If you're self reliant type of person who doesn't make excuses you'll be okay with flat rate. Hackers and complainers will eventually starve. Dishonest upsellers eventually get what's coming.

My best advice is to learn everything you can, even if it's how not to do something. Focus on doing the task correctly -- the speed will come with repetition. Live within your means and don't become a slave to the tool trucks. I've known a lot of guys over the years with a nice house and cool toys that were one light paycheck or injury away from a visit from the repo man. Lastly, have a plan B (escape plan) because your body won't tolerate this industry forever.

Personally, I would never recommend that anyone get into this field. You'll make a lot more working as a flat rate body tech. My brother easily makes twice what I do and doesn't have to spend 10-15% of his income on tools. But he sees his days as being numbered. Between an aging body and the extra complications involved with dealing with insurance companies it's just not what it used to be.

 

[ssn696]

For those of us on the other side, this is an interesting lesson. I have standards far above my own personal skills. I would never make a living in the automotive mechanical or body business because I am too much of a perfectionist. That said, I have a gorgeous axle under a bleached, checked and dinged car. Some day, some day.
For those that have to make a living doing what I do for fun, I now have a better appreciation...

 

[Ribbedroof]

Coming home after 9 hours of fixing other people's cars can make it really hard to get motivated on my own projects....my advice to people that ask is do not turn your hobby into your career

 

[King_V]

I think that those of us who are minimally mechanically inclined benefit from seeing this from the inside... especially the part about getting stuck with service advisors and managers of less-than-stellar ability.

Hence, why, when I find a good mechanic that I know is straight with me, I always say that's like gold. Even had one where it got to the point where I wouldn't question anything he said - he'd been that solid and reliable, and DEAD ON when it came to diagnosis.