Why do garages cost so much?

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OpenToSuggestions

OpenToSuggestions

Soldato
Joined
5 Aug 2006
Posts
11,397
Location
Derbyshire
Hey all.

I have looked around backstreet garages (needed a brake fluid change which has been done now) and it seems the cheapest garage around is about £45+vat per hour of labour.
Just wondered why they charge so much as I bet the mechanic would get about £10 an hour. The garage charges for all parts and oil so no hidden costs there.
There will be rent/mortgage on the property and/or loan repayments, bills such as electricity, insurance too.
There will be equipment that costs a few thousand pounds each such as the car lift and automatic air-con change machines, but do indys charge this much just because they can? I realise main dealers bend you over for far more.

This isn't a rant or a moan, more a question to answer something I have wondered about for a while.
 
[TW]Fox;19598147 said:
Price is the point at which demand and supply meet.
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For arguements sake might that be (prices made up) for a clutch change:

£200 labour plus parts - People will pay it and there are far more customers than your garage can cope with, so there are long waiting lists for work to get done.
£350 labour plus parts - People will pay it and there will be less customers than the £200 price yet your small garage is running at max capacity anyway.
£500 labour plus parts - People will think that is quite a lot and either do it themselves or get someone handy with a spanner to do it for less and your mechanics are left standing around.

As with anything, charge as much as you can really.
 
No point operating for none or minimal profit.

As with anything you're taking your business to somebody skilled & qualified in that profession. Just how osteopaths/chiropractors or lawyers/solicitors charge a fortune, though those two examples are entirely different from automotive mechanics.
 
BennyC said:
As with anything you're taking your business to somebody skilled & qualified in that profession. Just how osteopaths/chiropractors or lawyers/solicitors charge a fortune, though those two examples are entirely different from automotive mechanics.
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I don't think that's strictly true really.

Say you take your car to a main dealer for pads and discs. You pay whatever your dealer charges per hour, plus genuine parts prices probably with no discount, and what do you end up with? A car with changed pads and discs.

Or, say for example a mate's cousin's boyfriend worked at the same dealer you were going to take your car to, you'll probably get a discount on the parts, he'll come to you on the weekend, do the job and only want a fraction of what his company was going to charge you. And what do you end up with? A car with changed pads and discs.

You don't really end up paying for any extra skill or expertises. You pay for the facilities, loan cars, a nice receptionist taking your call, etc, not any extra skill or a better job.

But despite the £££ that you pay per the hour the garage game isn't as profitable as you'd maybe think. Large places have huge overheads and small places don't generally turn over a huge volume of work. You'd be surprised at how many small time independent/arches tye garages that keep their heads above water solely thanks to their MOT Ramp.
 
Joshy said:
You don't really end up paying for any extra skill or expertises. You pay for the facilities, loan cars, a nice receptionist taking your call, etc, not any extra skill or a better job.
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You also get a main dealer stamp in your service book and maybe get a courtesy car, but on the whole I agree.
 
I'm taking my car in for a service next week, I sourced the parts cheaper than him so he said bring your own bits and I'll service it and stamp the book for £35, parts cost £65, 5ltr oil, oil filter, air filter, pollen filter, fuel filter.
 
My local Seat dealer charged around £40 an hour labour.
But it was either cash or bank transfer :p

TBH considering I spent thousands there I'm beginning to wonder whether his workmanship was actually any good..
 
billysielu said:
The guy will get about £10-15, but the hourly rate will be more like £40.

You wouldn't make a company and charge just enough to pay your staff.
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no mechanic outside of f1 will be on £15, average is probably around £8.

You are mostly paying to cover the high costs of equipment and labour is just about the only way a garage can make money, parts we have to get in from main dealers only have a 5% profit margin and motor factor items about 15%.

There are a lot of costs you dont see like workshop insurance which is very high*, maintenance of ramps and hydraulics and the equipment to actually work on a car. Electricity costs are also high due to the amount of heavy equipment. We also have to pay for disposal of tyres, oil and every other consumable. And of course we have to pay taxes and a mortgage.

Just items we have purchased this year-

Diagnostics tester (not just a cheap code reader!) -£3500
3t ramp -£3100
hunter 4 wheel alignment bay -£30,000
Cambelt tools -£1200
Gell battery charger and tester -£1100

The labour rate also has to cover jobs which take longer then they should for whatever reason, a 1 hour job becomes 5 because of corrosion or seized item and the garages throughput drops massively. There is no chance you will get the customer to pay for 5 hours labour to replace a exhaust manifold as they will head straight online to a forum where everyone will immediately becomes experts and yell 'its a 15 min job!, no reason it should take longer I did one on my drive once.'


*we have two garages on the same road, one with 4 staff and one with 7, both require different insurance policies with liability for 5,000,000 each. pricey.
 
My guy charges what ever he feels like at the time, yesterday had my diff oil, gearbox oil and engine oil and filter changed. He was happy to be payed by me making the brews and getting his breakfast.

Just need to find a friendly place.
 
dalin80 said:
no mechanic outside of f1 will be on £15, average is probably around £8.
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If you run your own place(s) like you imply you do I'm surprised that anybody wants to work for you :D. That's £15.5k a year based on a 40 hour month - That's barely starting money for someone fresh out of their apprenticeship on the main dealer side of things, let alone the average for the trade itself.
 
Joshy said:
If you run your own place(s) like you imply you do I'm surprised that anybody wants to work for you :D. That's £15.5k a year based on a 40 hour month - That's barely starting money for someone fresh out of their apprenticeship on the main dealer side of things, let alone the average for the trade itself.
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not bad for a 40 hour month ;)
 
Joshy said:
If you run your own place(s) like you imply you do I'm surprised that anybody wants to work for you :D. That's £15.5k a year based on a 40 hour month - That's barely starting money for someone fresh out of their apprenticeship on the main dealer side of things, let alone the average for the trade itself.
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£15.5k is pretty damn good money for 2 hours a day work :p
 
This is why im very lucky to have a fella down the road who runs his own garage business from home. He's converted half his garden and the drive to the side of his house to a sort of open plan garage. He's registered self employed and has practially no overheads as he works for homself, whenever he wants.

He doesnt mind me supplying my own parts, and he does a brilliant job. A truely honest guy.
 
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