The Flat Rate System

Many technicians work in the flat rate system and I've been asked on more than one occasion what my opinions of it are so I've made this video giving just that. Feel free to comment and let me know about your experiences.

Stay dirty

ETCG1

[Bimmermpower]

Ive been an Automotive Technician for 7 years now. Ive worked for companies such as Nissan, BMW, Subaru and Mazda. In the beginning, I was always payed at an hourly rate - between 10 to 14 dollars an hour. When payed hourly - you do the bitch duties (oil changes, tire replacements and all the freebees.) I just made the Change to Flat rate at 20$ an hour - This video couldn't be more accurate it is truly a double edged sword. Good days might entail plenty of maintenance and Decent medium duty work and if you hustle and move quick - do a 15hr day.. you just doubled your pay rate to 40$ an hour.. that day at least. But like you say - YOUR TAKING THE BAD WITH THE GOOD - the next day you could die on and electrical phantom problem that your playing with all day that only had 1hr of labor approved. Its a love hate relationship but potential big earnings are there. You have to be Honest, Patient and polite to those around you NO MATTER WHAT to be successful. Thats my 2 cents. 

[thetrain]

I pay my techs 27$ hour every hour there at work plus bonus anything over 100% production weekly no drama everybody happy

[gearhead]

I am a very hard working mechanic who takes pride in the work that I do. I found it very difficult to work flat rate. I was averaging about 4-5hours a day. My problem with flate rate was compounded by my severe depression and anxiety. I an also a big guy and that meant I could only move so fast and there were some jobs where I had trouble getting into tight places. I really wish I could have been on a team like you so I could have asked another tech for help without costing them money.

[ETCG]

@srv3fender Yea it's not always a bed of roses but you do have a certain freedom with the flat rate system that you don't get with salary. Thanks for your input and for watching ETCG videos on your break!

[EvilJ]

The flat rate system, or "Flag hours" is the rape of a mechanics wallet. When there are few or no customers, you don't get paid, but they still expect you to do things around the shop... For free

[ETCG]

@ncrdisabled It's not for everyone that's for sure. There are those that can make it work and those that just don't like it. As for fair I really think that depends on the individual. Thanks for your comment.

[turbogodstoys]

I worked at a pep boys when i was 19 (20+ years ago) and i was complaining of getting jobs that didnt pay. one tech said he would do a heater core in a 80's camaro (2 hours flat rate i think) I said it would take longer and i didnt want the ticket. I decised to watch the more experienced tech show me how to do it it 30 minutes like he claimed.. Keep in mind this was a loved car by the owner perfect car!! he took 3 screws out of the heater cover and broke out the rest of the cover!!!! I asked why even take out the 3 screws if he was just going to destroy it.. he said thats what will hold the cover back in place.. man did i ever feel stupid (sarcasm) like u said u see all kinds of techs in flat rate field he said later hey they dont pay us crap so who cares.. Sad! Have a little pride or it just seems like hard work.. and love the videos keep them coming

[ETCG]

@Collins328 I did the exact same thing and ended up doing quality work and getting paid pretty well, it can be done you just have to give yourself the time to do the work right and not focus on the flag time. I really appreciate your comment and keep up the good work, we need more like you.

[chrisvill]

I totally agree. more than half of time things don't go smooth. I think the key is communication with the costumer. as soon as you run into a road block you have to do your best to comunicate that to the costumer. that way they can decide if they want you to keep going or just leave it alone. I always do my best to communicate with the costumer any issues that happen even if it's my fault. that way people understand what your going through and give you the time to get through it, because all they care about is getting their car fixed right. even if it takes longer. that's why I don't want to work at a dealership because I would be pressured to do things fast and I don't want to sacrifice quality for quantity. in my experience people appreciate honesty and compensate me for the extra effort to get it right. I think the best approach is just to put yourself in the costumers shoes and treat them the way you would like to be treated. and the costumer should do the same. that is the golden rule according to jesus.

[ETCG]

@tubejim101 Book time is .5 hours including timing the engine. That does NOT include diagnostic time however which is normally 1.0.

[ETCG]

@patrickcn I couldn't have summed it up better myself. Thanks for the comment.

[ETCG]

@Begbucks No I was never able to refuse work, I tried but was not able to do so. It's not something that I do often but I prefer to talk directly to the customer to find out what their expectations are before beginning work that way all the cards are on the table.

[CamaroAmx]

i work at a dealer as a flat rate tech. I've only been doing flat rate for 2 months. I used to be a gs tech at another chain shop (tires and oil changes) making an low hourly wage. I get paid more per billable hour at the dealer, but in most cases I bring home the same amount per week. the biggest issue is lack of work. at the dealer, its usually semi busy in the morning, but by the last 3-4 hours of the day, were all siting around with no work. from working at the tire shop, I can do an oil change and tire rotation in less time then the "Mitchell" time. but there is only so many oil changes at a dealership per day. I can and do  do other work, but it takes me longer. most days I all but break even (8.4 billable hours in a 9 hour workday), but at least 2 days a week, there's little to do. so I end up working 6 days for a 40 hour check.
our turnover is growing as time goes on due to lack of consistant work (almost nobody in the shop is making a 40 hour week). we lost a seasoned tech. replaced him with another seasoned tech and a kid still in school. then the new seasoned tech left and now a seasoned tech that worked there for years is leaving. and we rehired a semi-seasoned tech who was fired before for big mistakes.
we currently have 6 techs. most days there's not enough work for all of us, other days (usually Saturdays) we are swamped.
when I worked hourly, mistakes were rare. with flat rate, mistakes are being made more often (by "green" and seasoned techs alike).
the 2 longest tenured techs at our shop usually get the gravy work (little diag needed, quick easy fixes, even in my unseasoned eyes).

[ETCG]

@ShawnCFarm That can work very well as I've worked in shops like that and I still got paid. It really depends on what your used to, some techs start out flat rate and can't work any other way. Thanks for the comment.

[ETCG]

@84W150 That's a bad situation indeed and not an uncommon one from what I've seen. Thanks very much for your input and comment.

[ETCG]

@classicoutboards That seems to be about the standard for check out time, thanks for weighing in.

[Kradle]

The world needs more customers like you and more shops like that..I'd take my car back there

[ETCG]

@h23sirlude It is true that if not everyone is pulling their weight on a team that your paycheck will suffer. Thanks for your input and comment.

[ETCG]

@bhstone1 In those situations you have to leave the door open for charging more and let the customer know up front if you think a job might go badly like that, I know this is not always possible but in the end it's really a balancing act but if estimated properly you can get paid for that time. Thanks for your comment.

[karlhernandez]

Thanks for the flat rate discussion. The way I see it is people use it against us in any way they can. People do not understand that it actually takes us several repair attempts to beat the flat rate time. When we finally are able to, management tries to cut the labor rate. The reality is, it took many of us years of school and/or practice to become efficient. Also people do not understand its hard to make money with warranty jobs. We end up working twice as hard for half the pay.