Hourly Vs Flat Rate Who Really Wins?

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[craigbomer]

When you're paid flat-rate, the shop wins. Every time. How else are they going to justify not paying you when the works not there but you're forced to hang around in the building anyway. I've been a Tech for almost 20 years and flat rate has always felt like a gun at the back of my head. Flat rate is disrespectful of your time, experience, and equipment investment. You're too obsessed with hours billed. Just fix the cars and go home. It's so much easier to deal with the trouble cars knowing that you're going to get paid for your effort instead of getting screwed out of hours because your service writer can't sell diag time to save their life. I've seen flat rate suck the joy out of kids starting out in the industry and chase them away to other fields. I don't blame them. Flare rate is outdated and needs to go. I'm at an hourly shop after years of flate rate and I've never been happier. I can actually make a budget because I know what my paychecks will be.

[RayRay-ovuw]

I work Fleet maintenance. Hourly works better for me.

[overboostn]

I've been a Tech for 27 years, and I've worked dealerships at flat rate. I am currently working hourly at an independent shop.(22years) I COULD make more at the dealership, but the stress level isn't worth the extra money. I prefer a steady pay check and the fact I don't have to kiss someone's backside to get the work I need to survive. My $0.02

[RedneckManWV]

IMO, flat rate with a 30-35 hour a week guarantee is the best pay system for techs. It ensures the tech is motivated to do more than the bare minimum, and ensures the shop won't have a tech in every bay when the workload just ins't there. Holds both sides accountable, and it's a win-win for both the tech and the shop.

[everydayfleettech]

I agree that many shops abuse the hourly system however fleets are typically better. I left Ford to become a fleet tech. I can honestly say I will never go back.
In Fleet I am paid $35 an hour + pension+ 401k+ medical+40 hour guaranteed. Can’t find that at flat rate jobs

[dantheautoman]

I’m a fleet tech. I work for one of the largest freight companies in the world. We are hourly and the rate is fantastic. Everyone master certified is guaranteed 80k+ and because of how we technicians do our own parts ordering, were not dying in the shop. We get breaks to do the necessary clerical and it does make a huge impact in your work environment.

[Fedwrench]

I think you also have to consider the benefit package that comes with the job. flat rate can be feast or famine depending if the customers are or aren't willing to spend money on their cars. To me, i like the stability of a steady paycheck, excellent retirement benefits, and paid holidays that my job offers, along with not having to sell anyone anything and no weekend work.

[jaythomas]

Great vid! I’m on the fence with this one pros and cons to both. I’m at a dealer and find flat rate has a lot of things out of the mechanics control like: getting wrong parts, service writers not billing out proper times, computer systems going down or programming speed, service manager giving deals, and shop favouritism, all these things can make it tough even before you get started turning a bolt. In our shop the less you know the better the jobs you get, I think that will always be the most frustrating thing about it!

[Mr_Blobeye]

I work for Subaru and even with all the recalls and warranty work my low weeks are 60 highs of 85 working 40 if the work is there which most dealers there is. Maybe not gravy brakes tires and services but at least with a dealer we always have work. Flat Rate keeps me motivated.

[Dansyoung]

Flat rate has always been pretty good for me. Obviously when it’s very slow, hours drop. But some people can’t seem to mentally handle flat rate. My attitude has always been to go in and just do the best I can, if I focus too much on the hours it can really affect my mental state as well.

[alejandroflores]

4 years after you post this video and here I a
Applying at my first ever dealership technician job for flat rate pay. You’ve changed my mind completely. Let’s get this money!

[NewLevelAuto]

I have to add another subject to this . So over here most decent shops also pay a extra percentage on salary above 35 hours . After that the bonuses begin. There are guys here that on average will take home an extra 300 or more a week for hitting 60 hours billable. I guess it all comes down to the bargaining process in the shop you're in.

[honda_doc]

I have worked flat rate and it was good until the economy tanked in 2008. I work hourly now, with good benefits (401k, pension, and health benefits), anything over eight hours in a day is time-in-a-half, and if its less than eight hours between shifts is double time. I have been doing it for the last ten years and love it. But really its just comes down to what you are comfortable with flat rate or hourly in my opinion.

[geoffclark]

I agree 100% with you. The goofy thing though is that I make more now hourly than before on flat rate but I make less due to the fact that I could double my days on flat rate. The crappy part is that I get rushed to get things done now, with before the incentive was I made more. Thinking about going back auto because there is simply less bullshit. Good video! Good topic!

[hickoryridgefarms]

I’m hourly and union. No efficiency but expected quality first time work. I wouldn’t change a thing about it. I can have my breaks and coffee without worrying about loosing money. Just have to put in my time and fighter jets are cool to work on.

[DOYLECLEVERLOBE]

The Man, The Man is always gonna come out on top.

[keyskwik]

As a independent mobile tech, I like flat rate in the field. I was just hired as a commercial locksmith at hourly rate. They are also paying overtime pay plus night call pay ($150 per call plus labor of the call). I'm not complaining! When i become licensed then my pay will go up by 5 to 10 dollars an hour.

[snaponjunky]

I have done both over the years. I have been a fleet technician for 12 years at hourly/ salary and love it my family loves it also. When I was a dealership technician I was always unhappy and missed out on many family events cause I had to work. Sure I can make a little more flat rate but not having to up sell and waiting on customers approval is fine with me.

[stang]

I work at a independent shop. I get paid hourly (pretty decent) and earn 7% of total labor on the ticket. Works out pretty good. For example. If i do a alignment, i make $4.20 extra. And can turn out 3 of them a hour depending on the vehicle. Added to my hourly wage, it adds up to be a fairly decent hourly rate at the end of the week!

[windycityben]

Good video man. I’d have to say hourly is the way for me now. Large government fleet, good hourly wage, great insurance, NO STRESS. I did 14 years of Flat Rate, I could never go back.