Shop rate, what do you charge?

[AKDoug]

I'm at $60 an hour. However, I use the rates a manufacturer will pay for warranty as my times on many items as a flat rate. I have no issue beating those times on 90% of my work and that allows me some leeway to not work for free when it comes time to clean the shop and do administrative chores. I also charge a 1/2 hour minimum on any saw that comes in with the "it won't run" problem. I can test everything on a saw in 1/2 hour to determine it's problem and decide how to proceed. I'll call the customer at that point and give them an idea how much it's going to cost to perform additional repair. For example, if you come in with a broken starter rope you are paying the labor in my book for that, but my work is only warrantied on that starter and I tell you that up front. Many times, when I explain that I might find other issues with the saw if they pay for the 1/2 hour minimum on top of the starter rope, they gladly pay the $30 for me to run through the whole saw.

As for parts, I agree that not ordering them without a customer deposit is a good idea. However, if it's a popular saw (and part) I usually just run with it. Since I'm only a dealer for one brand of saw, that makes it easier for me.

 

[moody]

You have to make money on parts,it takes time source and order parts and time is money......I don't know of a shop that doesn't make 15% or more on parts

I make $0 on parts.

 

[fwgsaw]

I make $0 on parts.

Like I said I don't know a shop that doesn't mark up parts......and I don't know you, I can say for sure in my area if you don't charge for parts you won't survive unless u have a job and your doing it as a sideline business

 

[AKDoug]

You have to make money on parts,it takes time source and order parts and time is money......I don't know of a shop that doesn't make 15% or more on parts

If you have a store front and stock parts, saws and accessories, you will go broke on 15%. There is a big difference between a stocking dealer, a small engine shop and a custom shop that does repair and modifies saws. All different business models. I guarantee that a big shop like Madsen's is closer to making closer to 40% gross profit on parts, which is a 1.667 multiplier.

 

[moody]

Like I said I don't know a shop that doesn't mark up parts......and I don't know you, I can say for sure in my area if you don't charge for parts you won't survive unless u have a job and your doing it as a sideline business

I agree that servicing shops mark up everything. I pass the savings on to my customers. I also fix things so I don't order parts unless I have to. If I made money on parts it'd help my pocket but it's hard enough to get people to pay for parts at cost.

 

[fwgsaw]

If you have a store front and stock parts, saws and accessories, you will go broke on 15%. There is a big difference between a stocking dealer, a small engine shop and a custom shop that does repair and modifies saws. All different business models. I guarantee that a big shop like Madsen's is closer to making closer to 40% gross profit on parts, which is a 1.667 multiplier.

Agree with you, I average around 15% because its hard to Mark up parts that are 6 or 7k where as a spark plug can be 100%

 

[fwgsaw]

I agree that servicing shops mark up everything. I pass the savings on to my customers. I also fix things so I don't order parts unless I have to. If I made money on parts it'd help my pocket but it's hard enough to get people to pay for parts at cost.

I understand, we run to completely different type shops......I get special deals on parts so when I'm marking up I never go higher than what the customer would pay for the same part

 

[AKDoug]

Absolutely. I sell multiple products, some with a much higher value than a chainsaw. On big expensive items I might be at 20% gross profit and other items I'm at 100% gross profit. In the end, to keep my business afloat, pay a decent wage to my employees, and make a little profit, I have to average 39% gross profit. There is so much hidden expense in running a small business that unless you've done it, most folks would have no clue.

 

[ohio andy]

Some of you guys are selling yourself way short IMO. $20 - $30 per hour with your tools in your shop doesn't leave anything for any type of overhead, even if you are running on a shoe string.

I do side work similar to my day job. They get no break on cost but typically they get better turn around times and are happy to pay it. And by no break, it means they pay what they would pay the business not what the business pays me per hour. But most is flat rate which works out even better in my favor.

What is additional time away from your family worth? Mine is expensive...

 

[MasterMech]

I agree that servicing shops mark up everything. I pass the savings on to my customers. I also fix things so I don't order parts unless I have to. If I made money on parts it'd help my pocket but it's hard enough to get people to pay for parts at cost.

Moody, are you paying retail for parts? I have dealer connections that let me get parts pretty darn close to dealer cost. That allows me a reasonable markup but most of the time I can beat the dealers list price by a fair amount. If I'm paying retail for a part then it's zero markup. If you are buying parts at wholesale and selling at your cost, you are cheating yourself out of income that is rightly yours. Are your customers bringing you parts? I always have fuel or freight as an expense just to get parts in the door.

 

[Karl Robbers]

I got a few thoughts on this subject.
Firstly, are we talking an "on the books" enterprise where receipts are issued etc? Or are we more a "tax man don't know" enterprise?
Please don't answer that in case the tax man is watching :msp_scared:
If we are running on the books, our labour rate must be higher due to taxes due etc. Cash in hand, (or even better cash or cans), we charge less hypothetically speaking because our liabilities and responsibilities are less. Those of you who derive your primary income from small engine work are probably red in the face and spitting and cursing about now and I don't blame you, because "back yarders" potentially impact your legitimate businesses.
With no disrespect to anyone here, many forget the flip side of doing paid small engine work, that being the customer's right to expect you to stand by your work if it goes wrong. I've met a few who didn't.
If I were doing small engine work as a paid sideline, I would never buy parts with my own money and as a selling point, would suggest that the customer bought their own parts, even if you sourced them, (let's be honest, it takes sweet all to line up most parts for newer equipment), so you didn't have to mark them up. Yes you lose out on your mark up, but IMHO, that's worthwhile so as to avoid non payment on parts that you have outlaid your hard earned coin on. I would also deal in cash. Few of your clientele will want receipts, as businesses that could claim expenses will already be going to dealers in all probability.
Above all else, make sure your work is beyond reproach and be aware that in today's litigious society you may have to defend your work in a court of law in the event of an accident. Even if it was their negligence that caused the incident.
If small engines were my primary source of income, the rules of the game would change. Mark up on all parts, $75+/Hr. deposit up front, balance upon collection and no second hand parts unless the owner supplied them and signed a disclaimer.

 

[bezza1]

at work 88 dollars at home around 40 dollars

 

[exSW]

You need to figure out what local shops charge and charge that or close to it.
1)You are going at some point to need those guys and it doesn't pay to piss them off
2)You need money to grow on
3)If you are to cheap some big tree service or logger will monopolize you and elbow your other customers away,broadest customer base is the best.
4)You work to cheap you will burn out
5)Keep track,pay your taxes,you'll sleep better
6)If you are to cheap you will attract charity cases,some people there just isn't enough help for(I know sounds harsh and un-Christian)you have to help yourself before you can help others

 

[eiklj]

I charge the local shops $30 per hour to do the work they don't have the resources to do.
I have that shop order the parts I need and then I fix the item in my garage.
They charge the customer $60 per hour plus mark-up for parts, shipping, etc.
It's a win win for me and the shops I work for. They call me when they need me.
It's not an everyday thing. Maybe once or twice a month.

 

[rocketnorton]

I work on bikes, cars, saws & weld. my rate is a negotiable $50./hr. u get parts. if I gotta get 'em, they pay my rate to do so. some want to learn/help, i'll [if I like them] let them do some/all the work for bit more than 1/2 of what we agree on hourly. I also stand behind my work... is a side line for me, but do it on the book, if that's what they want. most don't. my dealer once asked if I was "cutting their grass" I said I was sometimes, but usually on stuff they turned away. box store bought, old stuff. theyre ok w/ that and give me deals on stuff...

 

[LarryRFL]

Down here, we're charging $75 per hour. I vary the mark up on parts according to cost. The key phrase I learned at the place I cut my teeth in this business is: Whatever the market will allow. Your customers will complain if you are too high and you'll be squeezed if you are too low. My experience in start ups (I've done it twice now) is go slow and make sure you have the infrastructure in place. That means things like suppliers, insurance, banking and a good accounting/point of sale system. Depending on your state, you might want to incorporate to limit personal liability. It's fairly easy and cheap in Florida. Register to collect sales tax. Do things as legally as possible. It will pay off in the end. PM me and I can give you the name of a good sales package that is quite inexpensive and easy to operate (it's less than $100).

 

[tolman_paul]

Some of you guys are selling yourself way short IMO. $20 - $30 per hour with your tools in your shop doesn't leave anything for any type of overhead, even if you are running on a shoe string.

I do side work similar to my day job. They get no break on cost but typically they get better turn around times and are happy to pay it. And by no break, it means they pay what they would pay the business not what the business pays me per hour. But most is flat rate which works out even better in my favor.

What is additional time away from your family worth? Mine is expensive...

Somebody understands the value of their time!

I figure my time is highly valuable as I so precious little of it. So, I figure my time is worth at least 1 1/2 times what my employer pays me. That's a double edged swoard as there is no way I could charge that as a sideline garage shop.

I used to sell cast bullets on the side to help pay for my shooting hobby. Eventually I figured out by the time I aquired wheel weights, smelted them down, cast the bullets, discarded the bad ones, lubed and sized them I was making minimum wage. That put it in perspective for me as I thought, why should I be making minimum wage so that my buddies could buy bullets for less than what the commercial casters were charging?

No matter how small your shop, you have overhead expenses. You've tied up money in your tools, you'll always have extra time tied up in jobs and unless you want to subsidize other people you're hurting yourself by under-charging. If you have the tools and knowledge and work reasonably fast, you shouldn't charge less than $40-50 and hour IMHO. The key is learning to work effeciently so that you can bang out jobs fast enough on a flat rate basis to make that much an hour. To achieve that you need to have enough work so that you can batch jobs. 1 day a week just work on carbs, 1 day sharpen chains, etc. And learn to turn away the basket case jobs. Sure, you hate to see a saw go to the junk heap but if a saw comes in that will need 2-3 hours of work plus parts and at the end of the day is a $100 saw, its just not worth it. That doesn't even include the time searching ebay and the web for the parts.

 

[jockeydeuce]

My normal mechanical shop rate is $80, but I've been charging $60 for chainsaw repairs, because that is in line with what the two dealers in town are charging.

Now that I'm way faster than I used to be at making repairs, I have started flat rating a lot of jobs.

 

[Cantdog]

Another thing to consider when taking on saw work and charging out for your time is how long it takes to clean a well used saw enough to even do the fix., especially if you have to open it up. Around here most pro saws are in softwood work....spruce, pine, balsam fir and used for cutting saw logs and/or pulpwood.....they can be very crapped up in a short time. I have pizzed quite a few local woodboogers off by telling 'em "It'll cost you more for me to clean that thing up enough to do the repair than the fix itself" Some are smart and clean the saw up before they bring it....others not so much....can easily add an hour or more to the job when it comes to the point where you have to did out the hex in every hex head bolt with a long awl just to get the wrench in it......after you've found the bolt head!! It does add to the cost.....can't be doing all that for free either.....can't pull a cyl that is covered in crap and have that disappear down into the crankcase either....sometimes the dirt makes up the $$$ difference between fixing a saw and just buying new......

 

[AIM]

All I can say is that many of you better be DAMN good and DAMN fast or a new saw is in the picture!!!!
If your dealing with me at least. Those $50 -$75 shop rates are crazy. Not cutting you guys down. What the hell.. If people will pay it why not? Not a chance in hell I would put $150 in a $200 saw... And most saws have a terrible resale value....