Creating a wave of repair shop revenue, according to Search Auto Parts.
The average independent shop within the autocare industry has a tough time understanding their door/labor rate, along with productivity increases and what it means to their business. Many shop owners are convinced they can’t raise their rate because it would price them out of their marketplace. Many shop owners believe they only need more car count.
It is important to understand that the labor rates of the shop should not be used as a marketing tool. The labor rate reflects the shop’s competency. We are no longer in the breakdown and repair business; we are in the knowledge business. If you are incompetent, then make sure you have the lowest door rates in the marketplace. If you are competent, then make sure you have the right door rate in your marketplace.