Posted by u/indy_shop_owner
Independent shop, what labor rate should I be charging?
Answered by Ask a Shop Owner ·
Been at $110/hr for 4 years. Dealer down the street is $180. Am I too cheap?
u/askashopowner Owner-operator advisor
Top answer
Yes. Cheapest shop in town is the worst positioning in auto repair. Customers assume cheap equals bad or cheap equals shortcuts.
Bench: for a general repair shop with good techs and clean bays, aim for 65 to 75 percent of dealer rate. In your case, $120 to $135 immediately, path to $145 inside a year.
The way to do it without losing your book: raise 10 percent every 6 months for 18 months. That is 30 percent cumulative with almost zero customer churn if your service is solid. Overnight jumps lose customers. Gradual moves do not.
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