Learning

Service

Labor Rates

Available Dates

September 25, 2012

These links will take you to the AED website for more info and registration.

Too often dealerships call around to the neighboring dealers and ask for their service pricing. While it is understandable to know what the pricing is in your territory it is more important to develop a price structure that is required to attract the business and also produce the profit necessary to operate a dealership.

We will expose the “peanut butter” labor pricing for what it is – an over simplified unrealistic pricing mechanism – and provide an alternative to consider. It all starts from the skills of the men and the degree of difficulty of the work involved. That requires we must know the skills of the men we employ and then use their skills on jobs that match that skill. Consider that the wage that is paid to the men is a direct reflection of the skills that the men have and we have a starting point to determine labor rates. It is called a “wage multiple.”

This methodology has been in use for a long time but not by sufficiently large numbers of dealerships; currently most of us over price low skill work and under price high skill work. We will define and describe the wage multiple so that upon the completion of this webinar the participants will be able to return to work and recalculate their labor rates with this new method and evaluate whether or not they should apply it in their Service Department.