First, let's call them technicians, for many they have to know several types of vehicles like Mazda�, Ford�, GM�, Chrysler�, AMC�, Yugo� and the list goes on, also lets not forget that in each of the above mentioned there are several types and divisions of vehicles that are common yet each are different from the other. So, yes let's call them technicians
Starting with the pay structure, there are several common ways that technicians get paid. Here we will review just a few of them.
The first is the 'Flat Rate' pay, and the second is the 'Percentage' or 'Commission' pay.Flat Rate- Flat Rate is the period of time a given job is assigned. There are several ways of coming up with the Flat Rate many are quoted from a book like the Motors Time Book�, and the Chilton's Time Book� once the time has been figured then it is multiplied by the labor rate of the garage. Of that money the tech is paid his personal labor rate multiplied by the number of hours quoted.
Percentage or Commision- Percentage is based on the amount of sales from parts for the week or the month. For example if a vehicle owner takes his auto to a garage for an oil change, they will include a brake inspection in hopes of finding the vehicle in need of brake service. Thus the owner comes in for an oil change and gets a brake job also. This is called upselling the job. The Technician gets a percentage if the total weekly sales adds up to his percentage goal.
Now let's look at a few examples.
Garage "A" has a labor rate of $50.00 per hour, and you need two tie rod ends at $22.95 each the time quoted is 0.5 hrs each with an extra 0.3 hrs for the toe adjustment.
Please refer to the Flat Rate table below.
| Garage "A" | $50.00 hr |
| labor | 1.3hr |
| total Labor | $65.00 |
| Parts | $45.90 |
| Tax@ $0.06 (State sales tax) | $2.75 |
| total parts | $48.65 |
| Grand Total | $113.65 |
| Technician "A" | $11.95/frh |
| labor | 1.3hr |
| gross pay | $15.54 |
Technician "B" works for Garage "B" and earns an hourly pay of $5.50/hr you bring your vehicle in for an oil change for $12.50 and that free brake inspection you keep seeing in the paper. Tech "B" changes the oil and lubes the chassis, and performs the inspection. The brakes show wear not bad enough to replace now but in about a month or two, and the transmission oil pan is leaking a bit. They have brakes on special this month for $48.95, and they have a transmission service special this week also for $32.95.
Brake Inspection "Free"
Oil Change $12.50 +tx $0.06=$0.75 total=$13.25
Brake Service $48.95 +tx $0.06=$2.90 total=$51.85
Transmission Service $32.95 +tx $0.06=$1.98 total=$34.95
Grand Total = $100.05
This is the amount you pay and tech "B" goes on to the next customer. Under the percentage pay the tech gets a certain percentage of the total weekly sales that he performed. This is usaually based on $1500.00 to $2000.00 range, but the tech only gets the percentage if he reaches that goal.
Tech "B" $
