Dealer service rates

[Vetech63]

and I don't know how it is in your areas, but its funny to see people that were working at 1 dealer that now works at another. Its like a carousel with the equipment houses. Its been that way since I can remember. I don't see many new people just well known ones moving around a lot!

 

[John C.]

About a year ago the local Cat house was getting $140 per hour for field and $3.25 a mile for the truck. I've always figures a call out at a minimum $1,000 charge. What they don't tell you about is the add on charges. Miscellaneous hardware and environmental charges are usually worth another $5 to $10 per hour. Expenses can add even more if you are more than a few hours away from the branch.

Every company here is looking for skilled labor. Last I heard the Cat house was paying $39 an hour to top field wrenches. I'm sure that has gone up. The good shops know better than hiring bodies to fill an opening. The lesser shops will hire anyone with a 1/2" Craftsman socket set.

When I started only the best got a truck and worked the field. If you apprenticed you did at least three years in the shop and then would get sent out on the quick for short field projects and what ever truck was not being used. Eventually you got a truck assigned to you. In the last few years I saw nation wide advertising for wrenches and newbies being paid bonuses for moving up and going to work here. Most all moved out to the end user companies because they paid a buck or two more and hour. The other issue is how the dealers are treating their top people. Job burn out and the damage to bodies over many years of climbing on iron is making the older guys check out early. I've seen some of my brethren treated like throw away garbage when they started making those health insurance claims on carpal tunnel, worn out knees and bad back pain. Other issue is the retirement systems for the new guys coming in. The Automotive Machinists Union here has been voted out of the last dealer shop because their retirement plan is nearly insolvent. Someone with more than ten years of service will only get about a quarter of what they should have been paid before the last recession.

We live in interesting times.

 

[Birken Vogt]

In the last few years I saw nation wide advertising for wrenches and newbies being paid bonuses for moving up and going to work here. Most all moved out to the end user companies because they paid a buck or two more and hour. The other issue is how the dealers are treating their top people. Job burn out and the damage to bodies over many years of climbing on iron is making the older guys check out early. I've seen some of my brethren treated like throw away garbage when they started making those health insurance claims on carpal tunnel, worn out knees and bad back pain. Other issue is the retirement systems for the new guys coming in. The Automotive Machinists Union here has been voted out of the last dealer shop because their retirement plan is nearly insolvent. Someone with more than ten years of service will only get about a quarter of what they should have been paid before the last recession.

We live in interesting times.

I would like to explore this a little more. I see the same issues, too.

One thing to consider are "alternatives" in economic-speak. Lack of mechanics and/or mechanics demanding better pay and benefits makes service rates higher. When service gets super expensive, keeping old stuff running becomes less cost effective to the point where if the customer is a real money making enterprise, they sell it off and buy something newer. Places that are not making money will fold up.

Being self employed and having been previously employed at a low-benefits place, it has always been about IRAs for me. The short time in history where the employer/union took care of your wages, health, and retirement is over. (Thankfully I would say.) Nobody will watch out for your own welfare as well as you, yourself will. I would much rather have cash in hand than a benefits package administered by somebody else.

It is all about incentives.

Much more to say but trying to stick to one idea per post here.

 

[Wes J]

I think it goes a long way to explain why there are so many "second tier" excavating companies. The "top tier" shops buy new equipment and flush it soon after the warranty is up. The little guys gobble it up and fix it themselves.

I just can't fathom these shop rates. It's a different world than the one I live in or was brought up in. Heck, my dad's shop rate is just slightly higher than what you guys are saying equipment mechanics are being paid as employees.

I see equipment mechanic jobs advertised here in the $18/hr range frequently. I saw one not long ago at $15/hr as a 1099 contractor.


There must be some secret inner sanctum that I'm not allowed to see inside.

 

[td25c]

There must be some secret inner sanctum that I'm not allowed to see inside.

We try to keep a lid on it but the engine noise is a giveaway .

Charge $ 100.00 an hour from the time we leave until I get back .

You get the rig & what's on it along with the driver .

Could be welding , wrenching ,or winching ?

All plays / pays the same . Sometimes late at night I get to feeling bad about billing a customer for the " Fun & Games " .

You get a $ 1,000.00 bill from TD that's for 10 hours . After that I am scuffed up & dirty and headed for the shower and some cold barley sodas . LOL !

 

[Old Doug]

I live about 2 hours from any thing if i was closer i would buy a truck load up the 23 year old guy that works were i do and go to work. I cant under stand why companys dont try to take young guys and try to teach them to be mechanics. You would need a old mechanlc to teach them and some one that wasnt a ass to manage them then if they were showing promise pay them were they wanted to stay. The guys are out there but you have to want them.

 

[td25c]

Great point Old Doug !

Outfits big & small come & go quick without the young fellers that are interested in it .

 

[Theweldor]

It can be quite a search to find them also. It is awfully hard to find someone who takes pride in their work it seems.

 

[thepumpguysc]

Doug.. when I was "on my way out", decided I was gonna leave,{ but didn't tell anyone yet} I would say,
Hey. why don't I take "X" along & teach'm somethin'?? The answer I got was> WE cant do that.. We'd have to charge the customer for an extra guy & at 110.00hr, the customer's not gonna pay that..
I wonder how much they had to KNOCK OFF the bill because they had to send another mechanic out BEHIND "X" to fix the job "X" couldn't.?? Stupid, stupid, stupid !!!

 

[Ronsii]

Doug.. when I was "on my way out", decided I was gonna leave,{ but didn't tell anyone yet} I would say,
Hey. why don't I take "X" along & teach'm somethin'?? The answer I got was> WE cant do that.. We'd have to charge the customer for an extra guy & at 110.00hr, the customer's not gonna pay that..
I wonder how much they had to KNOCK OFF the bill because they had to send another mechanic out BEHIND "X" to fix the job "X" couldn't.?? Stupid, stupid, stupid !!!

The sawcutters we use have been adding to their workforce and they'll send an extra guy out n/c to do the actual cutting every now and then... the only issue I have seen is the experienced guy that should be instructing him just hangs out and wanders around while the new guy makes mistakes on the cuts!!! now most of our jobs are low profile warehouse locations so most messups aren't that critical but besides doing it wrong and having to do it again it makes a two hour cutting job take 3-4 hours!!! which really messes up anything else I had planned on getting to that day.

 

[John C.]

I always wondered why a dealership couldn't provide a lesser charge for using an apprentice with a journeyman. When I ran shops I tried to pair up old and new and it worked out OK as long as I shifted the newbies between the old guys every so often. If you don't shift them the newly starts to emulate all the bad habits of the old guy and that isn't alway a good thing.

Formal training at dealerships is part of doing business now days with the failing of the unions and state sponsored apprenticeship programs. The only union school I know of left is the Operating Engineers layout outside of Ellensburg. I suppose the community college programs are still running but I haven't heard any noise out of either Bates Votec or South Seattle Community College. I didn't have much use for either of those programs as the graduates usually had a big head and an aversion to doing the really dirty work one gets when breaking in. Poor people and immigrants seem to be future of the industry for good wrenches.

 

[Mjrdude1]

Part of the issue today is... who wants to learn this damn dirty, greasy, job that leaves you with bruises and cuts from head to toe, just so the customer can yell at you for not fixing the thing he didn't tell you about to start with? It's way easier to get into something computer related that pays better and the only cut you get is an occasional paper cut. lol

 

[Welder Dave]

A generally well respected independent shop here built a fancy new building and also got new management. There were lots of long term employees and service managers that were either forced out or couldn't stand the new management. These are the people that knew the equipment and dealt with the same customers for years. They especially knew the older equipment. They were advertising all kinds of signing bonus's and incentives for new HD mechanics for month's. One of the parts guys that I know stayed on but carried my parts outside so he could talk to me. He said he couldn't say anything inside because they were being watched like being under a microscope. I'm guessing they've lost a lot of business.

 

[Birken Vogt]

Part of the issue today is... who wants to learn this damn dirty, greasy, job that leaves you with bruises and cuts from head to toe, just so the customer can yell at you for not fixing the thing he didn't tell you about to start with? It's way easier to get into something computer related that pays better and the only cut you get is an occasional paper cut. lol

Exactly my thoughts. Just like sewage lagoon divers get paid extra for that job. Doing a job that nobody else has the knowledge to do and it is stressful and unpleasant and dirty. And it takes expensive trucks and tools.

I learned a new saying a couple weeks ago from an old timer. "This isn't 1974 any more." Gomer and Goober could not do this job.

 

[92U 3406]

The shop I work at is pretty light on experience. Most of the shop guys are apprentices or fresh journeyman. Unfortunately they tend to not take much pride in their work and love their phones. The field guys have their ducks in a row though for the most part.

 

[thepumpguysc]

oooh.. don't get me started on the phone thing!!!!
I had mechanic "X" broke from that habit the 1st day when he came out w/ me.!!!
I heard from other mechanics how he was..
"That phone STAYS in the truck until we get back TO THE TRUCK.." I thought he was gonna cry..
& he looked like a heroin addict all day, lookin for a fix..Lol

 

[92U 3406]

I think we're all guilty of the phone thing to be honest. Once in a while I'll send a text or 2 if its super important. 99% of the time the personal phone stays in the lunch box.

 

[walkerv]

I think we're all guilty of the phone thing to be honest. Once in a while I'll send a text or 2 if its super important. 99% of the time the personal phone stays in the lunch box.

Mine stays on one of the service truck doors with some tools i check it on ocassion i rarely hear it ring over the noise of the job site , we have company radio so if its truck related problem comes over the radio i grab my phone cuz a call will be coming shortly

 

[Birken Vogt]

I'm not that old but I have always been one for a large computer screen. I don't even like to use a laptop. So looking at things through a phone feels like looking through a keyhole to me. I leave it alone other than to answer real phone calls until I get back to the office.

I know what you mean about the heroin addict thing. I've met that guy.

 

[td25c]

If anyone is expecting a cell phone " Text Message " back from me it could be 25 to 30 years before I bet back to ya .