Labor Rate Tracker Update: A Valuable Tool [RR 914]

Ever wonder how automotive shops across the country set their labor rates? It’s not just about matching the shop down the road. It’s about achieving your profit goals.

Tom Ham discusses the labor rate tracker tool, which can be found on the Automotive Management Network. The conversation includes the variability of labor rates among different types of automotive shops and across states and the influence of location and shop type on rates. Tom shares that the tracker has grown to 3,000 shops reporting their rates, providing a more comprehensive view of the market. The episode also covers the importance of having a labor rate that reflects a shop’s quality and customer trust. Find out why the labor rate tracker is a valuable tool for both shop owners and industry coaches to gauge market rates and inform business strategies.

Tom Ham, Automotive Management Network. Tom’s previous episodes HERE.

Show Notes

  • Watch Full Video Episode
  • Labor Rate Tracker
  • The labor rate tracker tool (00:01:42) Discussion of the labor rate tracker tool, its development, and its purpose in the automotive industry.
  • Setting labor rates based on profit goals (00:03:18) Importance of setting labor rates based on individual profit goals and the process of determining labor rates.
  • Feedback from members of the Automotive Management Network (00:08:14) Positive feedback from members of the Automotive Management Network regarding the labor rate tracker tool.
  • Different labor rates across various types of automotive shops (00:12:32) Discussion of the variation in labor rates across different types of automotive shops, such as RV shops, franchises, transmission shops, and more.
  • Variations in labor rates across different states (00:15:50) Observations on the differences in labor rates across states, including the correlation between labor rates and political affiliations.
  • Mobile Repair Rates (00:17:01) Discussion about the lower labor rates for mobile repair services and the impact of weather on their business.
  • Membership and Data Privacy (00:19:40) Details about accessing the labor rate tracker tool, membership requirements, and the privacy of members’ data.
  • Profit Structure and Labor Rates (00:21:08) Consideration of the potential value in understanding a shop’s profit structure based on their labor rate and the implications for success.
  • Cost Factors and Labor Rates (00:23:29) Discussion about the impact of rising costs, including healthcare and insurance, on the setting of labor rates.
  • Snowbirds and Florida (00:25:22) Conversation about the history of Florida’s popularity as a winter destination and the influx of seasonal residents.
  • Future Developments of Labor Rate Tracker (00:26:48) Discussion about the planned enhancements and future developments for the labor rate tracker tool.

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About the author, Carm Capriotto, AAP

Carm is the founder and host of the Remarkable Results Radio Podcast and the pioneer of automotive aftermarket podcasts. Carm calls on his years of experience in the aftermarket to bring engaging stories from his guests.

Listen to raw, unfiltered, honest, and sincere stories that include insights, trends, best practices, and expertise. Each interview brings an opportunity to learn one new thing through the stories of personal achievement. Many podcast guests tell their story of transformation from working in their business to working on it.

As host of over 1,000 episodes, Carm uses his enthusiasm and passion for the aftermarket especially the service sector to take his listeners on a journey showcasing successful service professionals’ paths to Remarkable Results. He also enjoys interviews with aftermarket industry thought leaders who bring their industry perspectives to his listener.

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