What is flat rate?
Flat rate is a pricing structure that many automotive shops & dealerships use to pay their mechanics for jobs. What it means is that the automotive shop/dealership will quote a job at x hours. The mechanic gets paid for that amount of time whether the job takes x hours or half of that. For example if you go to a flat rate shop and they quote you 4 hours to replace your rotors and pads and the mechanic finishes the job in 2 hours they get paid the same amount as they would had the job taken 4 hours.
What are the disadvantages of taking your car to a shop/dealership that pays their mechanics a flat rate?
Excelerate Performance has avoided paying our mechanics a flat rate because we believe in quality over quantity. Our reasoning behind this theory is we believe it encourages speedy and often sloppy work, the complete opposite results the consumer is expecting. This policy also rejects out mission in entirety. Flat rate mechanics are motivated to finish jobs as fast as possible. Lets face it If you could get paid the same amount for 2 hours of work or 4 it just makes sense right? This way you could get more done in a day. There are a laundry list of pros and cons in this situation but if you’re human like the rest of us, mistakes happen. Mistakes usually happen when a job is rushed I’m sure everyone can attest to that. But, with repetition comes accuracy and efficiency.
What are the advantages of flat rate fees?
Most flat rate shops have segmentation in their work force, where certain mechanics perform specific tasks because they can can get them done right and efficiently time wise. In this situation the mechanic works out in the end, not the customer because they are still paying the same amount. The main benefit to the mechanic is that they can bill more hours then there are in the day. Our mechanics can only get paid for 8 hours if they did 8 hours of actual work. Flat rate mechanics can potentially get paid 16 hours while only actually working for 8. So as you can see there can potentially be a huge financial benefit for mechanics to do as many jobs as possible in a day.
So why does Excelerate Performance pay their mechanics by the hour?
Although it would be most beneficial for our mechanics to pay them a flat fee we truly believe that our business is built around customer relationships, and satisfaction. We want to provide our customers the highest level of superior product and service, and we believe that paying our mechanics an hourly wage helps us do that.