Shop Rates

[fr8pilot1]

All,

I am doing an quick survey on shop rates. While I realize this can be a point of contention with some, myself included, I am asking for two things.

1. What is the service shop rate where you regularly have you biked repaired?
2. What do you believe is a reasonable shop rate for a franchised motorcycle dealer?

The reason I used the word franchised in #2 is because of the possible additional overhead associated with franchised shops vs independent ones.

We have just finished pouring the slab for the building of my wife's new motorcycle dealership. As such, we have been having discussions with our two mechanics about shop rates, flat rate work, etc. as to what the dealership will charge for service.

Some dealerships are already charging, and we are exploring the avenue as well, of using a multi-tiered rate structure. For example, should the hourly rate for adjusting valves and major engine repair be the same as changing a tire (off the bike)?

In fact, we have a dealer friend that if you purchase the tire for his dealership, he will mount the tire for free (off bike). Another friend charges a flat rate of $35, while still another uses flat rate at $95 per hour. Our ultimate goal is to create a rate structure that is fair to the customer, fair to the mechanic and keeps the dealership in business.

While not a BMW shop, everyone is welcome to stop by and enjoy free popcorn, coffee and whatever we have have special for the day. Our location will be 1/4 mile off I-65, one mile from the intersection of I-65/I-10.

Thanks in advance for your response and/or comments.

[Jake]

shop rate

All,

I am doing an quick survey on shop rates. While I realize this can be a point of contention with some, myself included, I am asking for two things.

1. What is the service shop rate where you regularly have you biked repaired?
2. What do you believe is a reasonable shop rate for a franchised motorcycle dealer?

The reason I used the word franchised in #2 is because of the possible additional overhead associated with franchised shops vs independent ones.

We have just finished pouring the slab for the building of my wife's new motorcycle dealership. As such, we have been having discussions with our two mechanics about shop rates, flat rate work, etc. as to what the dealership will charge for service.

Some dealerships are already charging, and we are exploring the avenue as well, of using a multi-tiered rate structure. For example, should the hourly rate for adjusting valves and major engine repair be the same as changing a tire (off the bike)?

In fact, we have a dealer friend that if you purchase the tire for his dealership, he will mount the tire for free (off bike). Another friend charges a flat rate of $35, while still another uses flat rate at $95 per hour. Our ultimate goal is to create a rate structure that is fair to the customer, fair to the mechanic and keeps the dealership in business.

While not a BMW shop, everyone is welcome to stop by and enjoy free popcorn, coffee and whatever we have have special for the day. Our location will be 1/4 mile off I-65, one mile from the intersection of I-65/I-10.

Thanks in advance for your response and/or comments.

My local, non-franchised shop charges $70 per hour but seems to charge a set fee (?$35) if a tire is purchased from him. That is a bit high, IMO, but he is there when I need him and I have a high degree of confidence in the quality of his work. I think a dealer can get by charging more if they have up to date equipment to query codes, follow up on company recalls/service bulletins and advocate for repairs to be covered under warranty (better still, help get repairs covered after warranty expiration). I try to maintain a good relationship with both services and look forward to a time when we again have a BMW dealer in Birmingham. I don't often get toward the Bama gulf coast on a bike but I am please to know you are there when needed.

Jake

[fr8pilot1]

Jake,

Thanks for taking the time to respond.

pb

[Vance]

Hi Paul,
Been thinking about this and I guess I have having trouble suggesting what a shop should charge. Running a business myself I find it difficult especially if I were to think of someone telling ME what to charge for what I do! lol. But thinking about getting motorcycle work done, I do like the idea of a tiered program and flat rate charges for things like mounting tires, etc. I have gotten more and more into doing the work like services that I can do myself but just haven't been motivated to get off my tail and do. That said, if I have the opportunity to save some money by removing the wheel and taking it to the shop for tire mounting, I would certainly appreciate that.

Further realizing that the shop must make money to survive a shop rate per hour must be set to cover the appropriate overhead, it must also be palatable to the customer. This is where it gets sticky...cause as the customer it seems things always cost too much...but as the owner, well....again, ya got to stay in business.

So wit hall this babble, I feel like a shop rate of about $75 per hour would not seem out of line to me and if some flat rate charges were available as well, that would be pretty atractive to me.

I hope this makes some sense and may be the slightest bit helpful. Looking forward to visiting the new shop!

[jdubeemer]

I have one thing to say about flat rate pricing and I have a recent example. I needed the AC belt and the power steering belt changed on my Miata. I emailed Med Center Mazda for a quote. They quoted something like $125 for changing each belt for a total of over $250 for changing the two belts. If they are already under the car and both belts are right next to each other and you have to remove the front belt to get to the rear belt why do they have to charge double the labor. I had planned on going there because there is not a Mazda dealer where I live. Express Oil Change in Boaz charged me $60 for changing both belts including parts because I was in there for an oil change and the car was already over the pit and you need to change them from under as well as under the hood.
I know dealers have high overhead but if I have my bike in the shop for major service plus annual service plus new tires I would like to think there is some wiggle room on labor if the bike is all apart for the major service. Am I wrong in this thinking?

[fr8pilot1]

Jim,

Your thinking is not wrong. This is a prime example of how a tiered service rate could be an advantage to the customer. But more importantly, how an experienced Service Writer (Advisor) is vitally important to a dealership. The goal is to make sure any repair estimate reflects an honest representation of the work to be done...and not just rake up shop hours via the shop rate manual.

Thanks for your input.

Vance - Good thoughts on your post. And yes, it was helpful.

pb

[lonewolf]

Bmw shop in tenn. , charged $ 64.00 hr. For some work on one of my bikes .