I figure there must be a dealer mechanic in here and i was wondering how flat rate works.
You get a estimate for work and it comes out to 10 hours flat rate. You drop the bike off and its finished in 7 hours but they still charge you for 10. Is this common practice for all the Dealers? I realize they all different but this one just doesn't sit right with me. Thanks much for your insight!

 

Actually it is very common, throughout the auto and motorcycle industry. There is a manual that is published that gives what the average mechanic should be able to do the repair in time wise. If it runs longer you get a break. If it runs shorter the mechanic gets a break. Most shops pay the mechanic by the same flat rate once they have gone through the training period. It is used as an incentive for good mechanics to work more efficient because they can make more money that way. The average guy still gets his fair wage. The slow guy doesn't make as much. Now smaller independent shops may work by the true work time. You can always try and bargain the work time. Most shops that are busy won't though.

 

Back in my car business days our service dept work was quoted using a flat rate manual. If the mechanic or bodyman (we didn't call them technicians back then) beat the flat rate time, they were rewarded with 50% of the additional revenue it generated. However, if the customer returned because of a problem with that job they could lose some or all of that bonus because the return repair was completed at no charge. The cost was the same to the customer regardless of how long the job took. This was a common practice then but I'm not sure if it's done the same now.

 

I do not get that from our dealer (Al Muth Harley Davidson, Black River Falls, WI). They only charge the time spent. I have had some work done that was quoted at 4 hours by them using the book estimated time, but it only took them 3, they only charged me for the 3 hours. On the other side of that I have also had them do work they under quoted time, and it took longer, they only charged me quoted time, and stated that was a learning curve on their dime.

 

I like the flat rate thing ... on my 11 Ultra I had them swap out the head pipe for a stock de catted pipe. It was pool season, I was swamped and wanted it done before my vacation ... one of the flange bolts on the rear cylinder snapped clean at the flange ... they had to drill it out, tap and install new flange bolt ... took the tech about 5 hours all told ... I was charged 1 hour labor which is what I was quoted. Service manager said it all averages out over time.

 

If anyone has a link to a flat rate or a timecode manual I would love to have a copy of those. Thanks crew!

 

Each manufacturer has flat rate schedules that are digital and accessed via computer by service people. There are some guides available to the public online, Chilton being one such service. The days of a book type manual are long gone.

 

The problem with the flat rate system is the tech rushs every job they get. The faster they get it done the more money they make. This causes some shoddy work to be run out the door. This is one reason i hate the dealerships.
Seen this time and again in both the bike and auto industry. My son works at an auto dealer and can tell you how crappy some techs are. Lots of cheating going on too.

 

Just because a shop uses a flat rate for determining labor, it does not mean the mechanics are paid on that scale.

Flat rate is a standardized way of determining how much to charge for a job ahead of time.

Yeah, they can often beat the time, big Fn deal.. The customer was told how much the job costs up front.

If a shop says 2 hours (at 100 per hour) for replacing a gizmo, it will cost 200 bucks...

If a shop says it will cost 200 bucks to replace a gizmo, period. It`s still the same thing.

People get all worked up about the hour thing, but in reality the only important thing for the customer to be concerned with is how much the job will cost...

 

Some dealers (mine as i learned several years ago) use the flat rate manual but pad it. They add 50% to whatever time the manual shows. That way they can keep their 'hourly' rate affordable (yeah right) and most folks are none the wiser. Bet lots dealers including auto dealers do this also.