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Shop Rate
Shop rate refers to the hourly cost of using a machine, facility, or service at a workshop or industrial plant. It can also refer to the charge or fee charged by a mechanic or technician for their labor. This rate is typically used as a pricing mechanism for customers and is used to cover the costs of operating the shop and to provide a profit for the owner.
Hourly rate = (Operating costs + Labor costs + Profit) / Billable hours per year.
For example, if your total costs are $200,000 and you expect to bill 2,000 hours per year, your hourly rate would be $100.
It’s important to note that some shops may also have a minimum charge for service, regardless of the actual time spent on a repair. It is best to check with individual auto repair shops for their specific rates.
How to calculate shop hourly rate?
To calculate the shop hourly rate, you need to consider the following:- Operating costs: This includes rent, utilities, insurance, equipment and tooling, and other overhead costs.
- Labor costs: This includes salaries and benefits for technicians, mechanics, and other employees.
- Profit: This is the amount you want to earn on top of operating and labor costs.
Hourly rate = (Operating costs + Labor costs + Profit) / Billable hours per year.
For example, if your total costs are $200,000 and you expect to bill 2,000 hours per year, your hourly rate would be $100.
What is shop rate for auto repair?
The shop rate for auto repair can vary widely depending on various factors such as location, size of the shop, services offered, and the level of experience and certifications of the technicians. On average, the hourly shop rate for auto repair in the United States can range from $80 to $150 or more.It’s important to note that some shops may also have a minimum charge for service, regardless of the actual time spent on a repair. It is best to check with individual auto repair shops for their specific rates.
