STEP 1: REVIEW YOUR HOURLY RATE
How much should you charge per hour?
Did you know the average independent repairer in Australia charges $100 per hour? In comparison, the big brands are charging $140-$170 per hour. Dealerships are $140+ – often over $200 per hour. That’s a huge difference between the little guys and the big guys.
It’s important to remember that 45% of cars in Australia are serviced at a dealership. Approximately a further 10% are serviced at a large brand. That means most Australian’s are paying more to service and maintain their car than what you’re probably charging.
SO, ASK YOURSELF THESE QUESTIONS:
- What are your competitors charging?
- Now ask yourself what are the better mechanics in your area charging?
- How did you come up with your current pricing?
- What can you do to improve your business to charge more?
- When is the last time you did a mystery shop? (big brands and small)
- When is the last time you put your prices up?
It can be daunting putting up your prices. Many think they will lose customers – the reality is if you lose a customer because you put your prices up a small amount – they weren’t that loyal anyway and are better off being a C grade customer with your competitor. That gives your diary some room for better quality clients who won’t question your price.
NOW, ARE WE TALKING INCLUSIVE OR EXCLUSIVE GST?
The law states that consumer pricing must be quoted at GST inclusive. We know some businesses will charge a price + GST. This is technically illegal when quoting a consumer. Besides, it’s not the best experience. So, all prices mentioned here are GST inclusive.
SO, HOW MUCH SHOULD I REALLY BE CHARGING??
Do you what to know what you are able to charge per hour? Go through the questions below and the more you can tick off… the more you can charge!
This will give you an indication of what you should be charging based on your business now, and what you could be charging if you make a few tweaks.
Note: Hourly labour rate is inclusive of GST.