Why are people paying so much for servicing?

[wilsonjeep]

Originally Posted by VooDoo2

Its not just jeep dealers or even just mechanic's. Tradies in general have decided their time is worth gold pricing and charge accordingly. Why a tap washer is worth $80 call out and then $75hr or part thereof to get a plumber in...im not sure. The whole "call out" thing is a complete rip. Dont forget those jeep mechanic's are paid under $20hr yet are charged out at $90+ and that's IF you get a qualified one working on your cars. The apprentices get under $10hr at times yet you will still be charged at full tradies rates. Sorry but a blue collar tradies isnt worth $100k+ a yr like they pay in the mines nor does ANY mechanic shop justify $90hr+ for shop time. I also do 99% of my own work on my cars and if i need other stuff done im happy to pay a fair rate. Smaller shops are still qualified to do most of the work and they are busy because they care and offer decent service at a fair price. It can be hard to find with the big guys squeezing them out. Failing that a post on here for someone thats done the job before (or other forums) often gets a qualified mechanic offering to do it for cash.

Go easy on the trades mate!

[NTRubicon]

Originally Posted by wilsonjeep

Go easy on the trades mate!

Agreed! Trades with their charge out rates probably have to maintain a decent sized workshop and a few staff.. all that requires someone to answer the phones, someone to do the accounts and payroll, paying security companies to monitor the workshop full of tools, insurance companies, power bills, water bills, phone bills. The list pretty quickly fills up. Ongoing education I know is a big annual expense for me ($10k+) I would suspect the trades are held to the same regard, and all that has to come off their bottom line.

Originally Posted by hotqld

When you think about it those $90 -$120.00 charge out rates is plus GST plus you have paid 30% personal tax which means its actually costing you.
$130.00 -$171.00 / hour. Plus typically parts are double / trible aftermarket / USA direct.
That's great motivation to do as much as possible yourself.

And don't forget you will have to buy tools, maybe a vehicle hoist if you do a lot, you will have to warranty your own work and fix it (for free) should something go wrong. There are probably a lot of backstage costs that we might not know about. I know I take home less than 35% of my turnover (before tax), because I have to make sure costs are covered and there is money to pay staff.

[Clarky]

I have been at the other end of this debate, I even felt guilty when I first started. Running costs are a killer, overheads like shop front (rent) public liability insurance, workers comp insurance, service vehicle insurance, OH&S requirements EPA requirements, then there is equipment hire/lease costs & repairs, admin/counter staff the accountant , the list goes on. A service call charge is a necessary evil if you want someone to come to you.

Even the local plumber who works out of a shed or van has a sh#* load of overheads before he even steps through your door, I think we all hate going to the petrol station these days so imagine if you had to do it every day just so you could earn a living fixing someone else's toilet.

I did an apprenticeship then worked as a tradie for 19 years untill the overheads outweighed earning capacity of the small business I worked for, being unemployed at 36 with a family & mortgage is not fun.

So when I have to go to a dealership & pay the $$$ to have something done I can't do myself (or don't want to do) its not the cost that pi#s me off, its the lack of knowledge of the product they are supposed to service/fix.

When you find a good mechanic, not a keyboard jockey service technician who likes to change parts, a person that can use their head & actually fix a problem, support them with your business, recommend them to your friends & don't begrudge the money they earn, after all they may have a Jeep habit to support as well

Jeep Aus are the real problem, their spare parts pricing policy is just plain wrong.

[96XJ]

I must clarify, the main point of the thread was to do with parts not labour, dont want to start a war thread against tradies (im a tradie)

[Richo]

So you want to buy a car worth potentially $45,000 - $60,000, but want to scrimp on servicing.

Dealerships worth millions of dollars with considerable overheads wont survive on labour income along.
The math isnt that hard.

[Tyvokka]

Originally Posted by Richo

So you want to buy a car worth potentially $45,000 - $60,000, but want to scrimp on servicing.

Dealerships worth millions of dollars with considerable overheads wont survive on labour income along.
The math isnt that hard.

Dont think that was his point. Why would you want to waste the coin either when parts could be bought heaps cheaper? Does not make sense.
Not scrimping on service but saving money on service. Parts here are wayyyy over the top.

I've donated my fair share to the local stealership and no more through education from learned people from forums like this one. Not all of us are that mechanically inclined or lucky enough to grow up fixing cars n trucks..

[layback40]

What I am reading here is that small biz type tradies feel they have trouble making a living.
Looking at dealers, I dont see too many dealer principals on struggle street. Our local one is too busy flying his plane around the country & being a socialite. At the end of the day these dealerships appear to do very well for the owners. Million $ life styles have to be paid for some how.
As far as spares goes, I was told not that long ago by one dealer that they need to mark up by 50% to break even. Yes their overheads are high but that is their choice to have all the bells & ...... ! If you look at some of the parts guys on here that do a good job, they dont have all the overheads & probably turn over more stock than most dealers.
The tradies that work for dealers are probably a bit pissed off when they find out that the dealer is charging 2 1/2 times what they are paid for their work. Most have to supply their own tools.
Oil & filters are something that there is a lot of mark up on. The true cost of manufacture of a filter is probably less than $1.00, but all the middle men have to make a living. The manufacture cost of oil is probably close to $2.00/Ltr.