TheRobSJ
Großer Mechaniker
But fundamentally, not being in the business, but outside as a layman, I've always liked the idea of SRT.
Simply because if you're paid the SRT rate, then a novice technician, in theory, would take more time on the job, and thus get paid less. An experienced technician would take less time and thus get paid more. Ideally, the experienced tech gets paid more because they can do more work in the day than a novice tech, and, again ideally, it all works out in the end.
So, anyway, on paper it sounds like a good idea to fairly pay technicians, to try to limit fraud against the consumer, etc. but I don't know how well it all works out in the end in the real world.
I’m sure I’ve gone over all this in years past when the subject of flat rate comes up. But this seems like a great thread to put it out there again.
As an outsider, or hell even an insider, it seems like a great way to pay the techs.
I say insider too because at my last shop I constantly was trying to get them to change the pay plan to flat rate, as we were straight hourly with a flat rate-ish bonus. And the bonus had several brackets on a sliding scale and all kinds of other stupid overcomplications. In a nutshell, the owner kept trying to have me increase my technicians’ productivity, but wouldn’t give me the best tool in the world to do it. Want to sell more hours? They pay the techs on those hours, not on the clock. Then you’ll magically see them all start billing more hours. This was strictly to appease the owner and line my own pockets, as my bonus as the foreman was based on how many hours the shop billled. Otherwise, I think flat rate is terrible.
But wait. I just said it’s a great way to pay the techs, and then I say it’s terrible?
So when you said, ”then a novice technician, in theory, would take more time on the job, and thus get paid less” absolutely holds true in flat rate. But. What would make that a little more fair is that if every technician was paid the same rate, $35/hr or whatever. And a lot of shops, particularly ones with a union contract in place, do have a “scale” they pay a journeyman flat rate technician. However, other shops...they pay different rates to different techs. Inexperienced ones get way less. So not only are they making less because they bill out less hours, but the rate those hours are multiplied by are less too. There are some shops where I shit you not, some techs make 4x what some other techs make. If you’re one of those junior techs, this is very demoralizing and they burn out of the business fast or they start doing things like mentioned earlier where they start taking awful shortcuts (like only doing half the spark plugs or just throwing away that hard to replace air filter) to try and catch up to the higher paid techs.
And we’ve already covered in this thread that techs will avoid warranty repairs like the plague since it pays so little compared to customer pay work. And when they do get stuck with warranty work, they will take whatever not by the book shortcut they can think of short of leaving a mark/crack/broken part that you can see to get the job done faster. It encourages sloppy work. It encourages quick shotgun diagnosis, which is
In a nutshell. The shop and maybe 1/3 of their technicians will make more money on the flat rate system. But customer satisfaction takes a hit which affects customer retention, which of course can hurt the long term profitability of the shop.