Have you ever wondered why some of our car repair bills seem to make a hole in our pockets? We tried to break down some of the car repair expenses as examples in the below table.
Every car repair bill can be broken down into Parts & Labor.
Most decent independent repair shops have a margin anywhere in the range of 25% to 100% from where the get their parts from. So, if a brake rotor is priced at $100 at a local reputed parts store (which most people can visit and buy themselves), shops usually price it anywhere between $125 to $200. That’s just how shop prices are for parts.
What about labor? Well, labor prices with decent repair shops can range from $90 to $130 per hour. So, if the replacement of the brake rotor takes 2 hours, then just the labor alone can cost you about $220 for that job.
Labor guide? Hmm... what's that?
Now, you might be wondering how are these labor times calculated for a specific service job? The answer to that question is that there are industry standard labor guides which the shops have access to, mostly all the shops in the country uses the same guide. So, imagine there is a big matrix of various car repair services (like brake rotor replacement, starter replacement, etc) vs all different year, make and models. This matrix is a labor guide for how long a specific service job takes for a particular year, make and model. Depending on the time, the labor price is calculated.
Okay, so since shops charge anywhere between $90 to $130 per hour, they must pay the mechanics really well, correct? You will be surprised to know that the mechanics, who are the actual people fixing your cars, get only paid about $20-$30 per hour. The difference is what the shop uses for their overhead and other charges.
Considering the fact that 75-80% of the repair jobs can be performed with a basic set of tools in your driveway by a decent mechanic, shops usually exist for the rest 20% of the repair jobs.
We at FixMyCar are able to pass on the savings to you (our customers) because we do not have any overhead, or any expenses related to heavy equipment required to perform heavy repair services. Our ability to work directly with our mechanics, without really a physical shop allows us to only focus on jobs that be done in a driveway which is about 80% of the jobs and hence save on physical store expenses and other equipment expenses. As a result of which, we save you about 25-35% savings on your car repair bills. Take a look for yourself!