u pay higher prices for the training that is required by Chrysler that is part of it. The dealer has rules that they fallow a dealer is subcontract of Chrysler company and is only using that name to run a business and they have rules that need to be fallowed in order to get and keep certain things.

A certain number of techs need t be at a certain level for Chrysler to pay for warranty repairs or they charge it back to the dealer.

An Advanced auto warranty only covers the parts not labor.
Bubba has his own warranty build in as well or at least he should and the over head is not as high as well. The bubba does not haft to pay for franchise fees or floor plans things like that. The standalone places like Tires plus or Good year ECT they all pay that stuff as well but not required things like training and so on. Most of the time a dealer will spend the money to keep the good techs there and get a return on there investment . Most other shops have high turn over rates and build that into there budget.

Its all about numbers and how to play the game. Go read the fair tax website it will give an in site to most hidden taxes and things that u pay for already.
I know I have things built into my labor rate and what I charge because u cant run a business if U are giving away all the profit.

as for RacerXX back to economics 101

 

Yes, but factor in that parts are made to fail. Otherwise there would be no parts business. It doesn't matter who you buy from. Some people prefer peace of mind rather than save a few bucks and risk a shoddy job. Is it comon place these days to see "CHINA" stamped pn your parts. It our new reality...lol. Remove the side cover on a 2008 minivan and the firsgt thing you seeis "CHINA" stamped on the bearings.

 

Same thing happened to me in 2008. I was at a multiple line place. Ford/LM, and the entire Chrysler lineup. I gave up on those guys. Growth potential is with the Koreans now, but Korean cars suck.

I dont know about Atlanta but in NY, the tires places pretty much dont do more than that. To keep the cash flow consistent many guys specialize in a few things. There are enough business clients and fleet work to get you through, if your good and persistent. I just came back from an independent tire guy and just doing wheels and rubber he keeps it packed. Its like a restaurant, you know, turnover is his thing. Only the PepBoys, Firestone, etc. guys do everything but then again they are the only ones who can give the dealer a run for his money with regard to SPACE to JOB ratio.

 

Fleet work is always discounted. But its ok, because it almost always guaranteed work.

 

My labor rate is low because the shop consists of just me. And realistically, all I need to do is make enough to cover the rent, utilities, and environmental issues(sanitation, water, fluid collection). But then again, the labor rate I have is competitive to the things I do. I dont tend to work on "Everything under the sun" Much of what I do is SUV/van work(relatively simple because most are RWD) and the Cadillac line(which no one wants to do because of the serious electrical diagnoses you have to do, in addition to the time consuming issues with the Northstar V8). I make my money solely by knowing the Cadillacs and beating the dealer by more than 1/3. That makes me exclusive AND guarantees the work as soon as I have a place to put the car. You tell a guy you ll do his head gasket for $900 when the dealer wants $3K(if they want to do it, many only want to sell you another motor) and you got the work. Usually these guys dont have more than one Caddy, so I get current work and future work. And if you ever get this job, heres a tip, the gasket NEVER fails. The studs move in the block so it resembles a HG. And also it requires you to drop the subframe to access and remove the head from the right side under the firewall.

And in the dealership there is always cronyism at play. The Service Advisors or the guy who dispatches the work always tend to give the gravy to his "buddies", the 90K services, the 4 wheel disk brake jobs, all the add-on zippity do-dah stuff from Aftermarket companies like BG. This allows that guy to end the week with 90 hours, while the other guys struggle for upsells trying to aim for 60-70. What you guys dont know is that in NYC, all the dealerships are unionized. The Chrysler/Ford shop I was at was a Teamster shop. The Ford dealer I worked before that was UAW. And when I started I was at a Volvo/Honda/Suzuki shop that was organized by the National Trade Something or other. They found out that if a dude cant make 40 hours consistently he wont show up everyday. Per my example with the radiator he could keep some tools in his car and do the job on the street and then come in later in the day, if there is work. And many, many guys do that here. The union pretty much just guarantees you 40.