Understanding Automotive Repair Pricing

THERE’S NO STANDARD FOR HOURLY AUTOMOTIVE REPAIR PRICING IN THE INDUSTRY

Labor rates are always changing, and by the time you read this article it will most likely be different due to factors like, rising costs due to inflation and complexity of work as cars and trucks get smarter, think computers and AI, just to name a few.

Typically (but not always), auto centers will calculate their automotive repair pricing by the hour using a labor guide or by the job performed. The labor guide lays out a simple equation for billing based on the job performed (Time Worked x Type of Job = Hourly Rate).
‍For example (This is just an example for explanatory purposes and does not reflect actual labor rates), let’s say you need to have your thermostat repaired. The labor guide calls for thermostat work to be billed at $100/hour and it takes the technician just over 40 minutes to repair, or roughly .7 hours, giving you a total labor cost of $70.
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USING REPAIR COMPLEXITY AS THE PRICING METHOD VS. A LABOR GUIDE

In contrast, the practice of charging by the job takes a few more factors into account. Auto centers come to their prices by factoring in the difficulty of the job, their experience with that particular type of labor, and the make/model of the vehicle.

At Paul Campanella’s Auto Center we value both a labor guide and job complexity and that’s why we utilize both systems. nu items at our shop are charged per job and include services like an oil change, transmission flush, or tire replacement. One thing to remember is that these menu items will vary in price based on the type of vehicle. Simply put, labor rates are a bit more to replace a thermostat in a BMW 535xi than in a Chevrolet Silverado so it's relative to the vehicle.
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We hope this has been helpful. Please give us a call and set up your next appointment today!

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