How I structured our automotive repair labor rates after taking over from my dad

When I took over the shop, Dad was still quoting jobs by gut feeling, which meant we constantly lost money on diagnostics. I finally standardized our automotive repair labor rates because we needed to pay the bills and keep our customer explanations consistent.

Here are the exact scripts and steps I use now:

• The standard phone quote: "Our flat labor rate is $145 an hour, and we use the industry standard labor guide to calculate the exact hours required for your specific vehicle before we start any work." Note: Use this when a customer calls asking for a quick estimate on standard mechanical jobs like brakes or an alternator.

• The diagnostic text confirmation: "Hi [Name], we charge a flat $145 diagnostic fee to find the exact issue. If you do the repair with us, we roll that right into the labor cost." Note: I send this to every first-time customer before they drop off, and I automate the texts through fixyflow.com.

• The complex diagnostic script: "For electrical issues, our diagnostic rate is $175 an hour, with a two-hour minimum to trace the wiring harness." Note: Use this only for the tricky diagnostic jobs that require our high-end scanners.

• Handling the price objection: "I get it. But that rate covers our tech's training and the factory software we need just to talk to your car's computer." Note: Use this when someone brings up the cheap guy down the street.

Every market is different. Feel free to adapt these templates to fit your own automotive repair labor rates and local competition.