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Hourly vs Flat Rate

Akdiesel

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Aug 17, 2015
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Alaska
Spent a number of years as a diesel mechanic working hourly. A great position has been offered to me at a dealer that i would like to work for but it is flat rate. Has anyone made the jump? Any regrets? Anyone happy to have switched? I like it because it is a dealer so I will get all the factory training and OEM info that I need to better my trade.
 

Old Doug

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My frist mechanic job was flat rate. I had all the work i wanted parts were no problem and i was young and fast. That was 30 years ago i dont think i want to do it agin unless it was the right deal and that would be some kind of dream job. That would all depend on how old you are, if your old job is no good and how good the new place would be. The only true way to find out is do it.
 
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Akdiesel

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Aug 17, 2015
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Thanks! I'm 29 so not too old yet. I'm excited because it will allow me to build my knowledge across manufacturers since it's a Freightliner dealer and I have only worked on KW and Petes with a single FL thrown in the mix. I also am excited to learn Western Star and more about newer Detroits, I am decent with older models like series 60 but haven't learned much on these DD motors.
 

old-iron-habit

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Make sure that you are fairly compensated when extra work is added to the original task. Iv'e heard wrenches complain that they were gave nothing or very little to go futrher into a machine only to find out the dealer charged full time again to the customer for the extra work. I'm sure most are reputable and will treat you and the customer fairly but it is good to be aware of how added work is paid for.
 

Akdiesel

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Aug 17, 2015
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Wow! That's a great thing to be aware of. I hadn't thought of that before. I'm fairly business and money smart so I see both sides of it but as the mechanic I want to be compensated fairly like you said. I'm looking at renting my house vs selling it so I'm probably going to take it just need to get everything in order
 

kshansen

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Myself I never had the "opportunity?" to work flat rate but one thing I heard from a guy I knew who worked in a bodyshop where the work was flat rate is if the service writer or person assigning people to jobs has a buddy or two it can be rough. Buddies get all the new rust free cars and the other guy gets the old rusty farm truck with caked on horse sh*t.
 

Truck Shop

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Myself I never had the "opportunity?" to work flat rate but one thing I heard from a guy I knew who worked in a bodyshop where the work was flat rate is if the service writer or person assigning people to jobs has a buddy or two it can be rough. Buddies get all the new rust free cars and the other guy gets the old rusty farm truck with caked on horse sh*t.

I believe in flat rate shops that's called the snorkel effect. A few guy's get the gravy jobs because. Worked flat one time-never again for me, to old anyway.

Truck Shop
 

Shimmy1

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Aug 14, 2014
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My life experience with flat rate vs. hourly is it's great for the shop, not so much for the customer. Most (I use the word loosely) flat rates can be easily beat by an experienced and/or crafty mechanic. That means more money in your pocket. But, as kshansen says, it definitely depends on the service manager. If your getting all the s#!tty jobs, might not be so good.
 

kshansen

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Central New York, USA
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Retired Mechanic in Stone Quarry
My life experience with flat rate vs. hourly is it's great for the shop, not so much for the customer. Most (I use the word loosely) flat rates can be easily beat by an experienced and/or crafty mechanic. That means more money in your pocket. But, as kshansen says, it definitely depends on the service manager. If your getting all the s#!tty jobs, might not be so good.

I can imagine real "Troubleshooting" goes out the window in many cases!
 

check

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Apr 1, 2012
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in the mail
You say you have been working hourly up until now but didn't say if you were working for the owner of a fleet or an independent shop where your labor has to be charged to a customer. It makes a big difference because working for the owner directly is generally much less stressful as he is not trying to justify every minute of your time on a customer's bill.

There are two kinds of mechanics. One has much analytical ability and can easily adapt to working on equipment they are unfamiliar with and figure it out. The other kind has a great memory and if he has done a certain task before, he remembers every single step and wastes no time in repeating it, making few stops at his tool box as he recalls every size socket and tool he used before.

Most mechanics are somewhere in between. I was the first kind to the extreme, with a bad memory and had to figure it out again the second time. The second type is going to be the best suited for a dealership as he doesn't have to repair equipment made by 37 different manufacturers made in the last 40 years. It's generally all made by one manufacturer and made in the last few years. He doesn't need to figure out the reason why as much as he needs to remember exact procedures and repeat them quickly.
 

Shimmy1

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You say you have been working hourly up until now but didn't say if you were working for the owner of a fleet or an independent shop where your labor has to be charged to a customer. It makes a big difference because working for the owner directly is generally much less stressful as he is not trying to justify every minute of your time on a customer's bill.

There are two kinds of mechanics. One has much analytical ability and can easily adapt to working on equipment they are unfamiliar with and figure it out. The other kind has a great memory and if he has done a certain task before, he remembers every single step and wastes no time in repeating it, making few stops at his tool box as he recalls every size socket and tool he used before.

Most mechanics are somewhere in between. I was the first kind to the extreme, with a bad memory and had to figure it out again the second time. The second type is going to be the best suited for a dealership as he doesn't have to repair equipment made by 37 different manufacturers made in the last 40 years. It's generally all made by one manufacturer and made in the last few years. He doesn't need to figure out the reason why as much as he needs to remember exact procedures and repeat them quickly.

Very well said, check.
 

RZucker

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Wherever I end up
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I can imagine real "Troubleshooting" goes out the window in many cases!

Yep. A few years back a local rock outfit bought a new to them Pete with a 3406B, nice clean truck, but it just wouldn't pull. a local dealer had replaced the primer pump, the transfer pump, and the FRC diaphragm... it still wouldn't run. Dealer (in yellow engines) wanted to do an injection pump overhaul for big bucks.
I was in the pit one day working on a loader for them and the super asked me to look at the truck real quick if I would. I thought I would trace the transfer pump feed line looking for bad spots first. And surprise! a spin on primary filter hidden on the frame right in front of the RH fuel tank.
 

Old Doug

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check your right a deal would be alot better place to work flat rate. Were they work on mainly one brand and you dont see alot of junk geting repaired.
 

old1

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PA
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Myself I never had the "opportunity?" to work flat rate but one thing I heard from a guy I knew who worked in a bodyshop where the work was flat rate is if the service writer or person assigning people to jobs has a buddy or two it can be rough. Buddies get all the new rust free cars and the other guy gets the old rusty farm truck with caked on horse sh*t.

As a young Auto/Truck tecnician, I worked over a decade Flat-Rate. The above statement by kshansen, is absolutely true. Buddies got the easy money work, some got really screwed, and the middle ground you made a decent living. I saw it from both ends. The way they hire and fire service managers and service writers, it was like a lottery.

In saying all of that, I did really well; of course I was doing a lot of work the others could not do.

Remember, I was much younger. Flat-rate can be hard on your health, mental and physical. You will see slow times and busy times; your bills will come whether you are in a slow time or busy time. So you have to manage your money.

Not every body can be a Flat-rate technician, but a good one is like Gold.
 

check

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I never made much money as a mechanic in the seventies and early eighties, hourly or flat rate. Flat rate was MUCH more stressful, though. It also tended to bring out the worst in me.
The best and easiest money I made as a mechanic was when I worked for the owners of oil and gas wells, servicing their gas compressors, offshore cranes, pumps and lifeboats for 15 years. 300 bucks a 12 hour (cough cough) day thru out the nineties. Service tickets didn't have to be justified to a poor truck driver on a tight budget.
 

Truck Shop

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I found that tension was alot higher in the flat rate shop or dealer I worked at than hourly shops. I had no kids or wife to deal with and no huge monthly bills to go with it.
all the other mechanics had payments and family. I averaged 200 to 220 hrs a month on flat that included warranty work. I was working 6.9/7.3 diesel fords. Most of the
other mechanics resented me because they were lucky to to see 180 hrs including warranty work. And most had come backs and there your making zero. I related most
of it to stress at home and having to over perform at work. Working flat rate your head has to be in the game, outside distractions can-I say can be costly. And the
customer doesn't like it either. IMO

Truck Shop
 

Akdiesel

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Aug 17, 2015
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Location
Alaska
Great advice here. I worked at a CAT dealer before this at a mine, hourly. I work now for a fleet shop and it is an hourly position. I am looking at going to a Freightliner dealer flat rate. I know initially they guarantee 40 a week at a minimum, though you are still flat rate, to get your feet under you. So if you don't bill 40 a week they make up the difference. It's a big shop and I know you have your own bay to work from. I will make the same there as I do now per hour.
 

Wes J

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Jan 24, 2016
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Peoria, IL
Something to consider is your status as an employee or contractor. In some shops the mechanics are considered independent contractors (1099). Usually this is in a flat rate shop. If you are an independent contractor, you don't have workman's comp or unemployment benefits, let alone any other perks like PTO or health insurance. There is nothing wrong with it (I work as an independent contractor), but you need to be sure you make enough money that you can cover your own insurance requirements.
 

Todd v.

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Jan 20, 2015
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SC
I have worked flat rate for 25+ years as an auto tech so I can't compare to hourly pay. I can tell you i would not make the money I do if I was payed hourly, but on the flip side it takes a long time before things start to go smoothly and quickly. Fast is smooth and smooth is fast. In other words don't work faster than you are proficient or it will cost you. I average about 140% efficiency.

And yes, politics will come into play... Be the most "valuable" employee they have and if they know their ass from a hole in the ground you will be golden.
 
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