Are you an auto repair shop owner? I bet one question is always on your mind: what should your labor rates be?

It’s actually a bit tricky. If you set your labor rates too high, the customers won’t find your rates convenient. But if you set them too low, you will most probably get a hit on profits. 

So, what should be a balanced labor rate?

Well, don’t put so much pressure on yourself as we are here to help you set it right!

Firstly, for those who are residing in Pennsylvania, continue to read this blog and find the sweet spot of setting the auto repair labor rates in Pennsylvania!

For those living in New York and California, simply click on your state’s name in this very line.

Let’s begin with the common challenges first that almost every shop owner faces…

Challenges You Most Likely Face!

Now, you may be aware of the average labor rates in the auto repair industry, but that doesn’t mean you should set that for your shop. 

Every state in the US has an average labor rate while every state further varies depending on several factors. You can find a state wise breakdown of labor rates here!

You need to ensure that you are setting the labor rates according to the following factors:

  • Geographical location
  • Cost of living
  • Competition
  • Specialized and expertise
  • State regulations

You gotta strategize the pricing accordingly cause this is the number one reason many shop owners fail to understand.

Rising Operating Costs

Let’s talk about the one thing that every industry in this world is facing – INFLATION…

The bitter truth is that no matter what industry it is, the operating costs are rising. And yes, everything is interconnected!

Inflation leads to increased goods and services costs. For you, this means higher inventory costs for your shop.

Then comes the wages of the techs and mechanics. You gotta pay them competitively else they will always be looking out for other options. Here is a complete guide on how much a mechanic can make!

Rents and property costs are another headache. Having a physical location means facing rising rents and utility bills. 

Insurance premiums, the cost of specialized tools, and so on, you probably got the idea of what can be added to the list…

Competing with the Fellows

Well, there are hundreds of auto repair shops in Pennsylvania. These include small family-owned businesses to well-established shops. 

You may consider that just because these shops are in Pennsylvania, the rates would be similar or slightly less or more.

But make NO MISTAKE!

There is a drastic difference from area to area.

You have to make the best offer to your customers. For that, you must know the labor rates in your specific area. And we are going to provide you with that GLADLY!

Shortage of Skilled Labor

Ah, the tender spot!

No doubt the automotive industry has advanced. And you know what this means…

Of course! Requirement of SKILLED LABOR!!!

It is very important to hire skilled techs for your shop. The demand for ASE certified techs is increasing by the day. 

However, this is not the only task at hand. You gotta retain such talent as well. Adjusting the labor rates accordingly is the key to attracting and retaining the top talent in your shop.

Now, this is the trickiest challenge because you gotta find the right balance between offering the wage and charging the customer.

After all, you won’t be able to offer your techs a good labor rate unless customers are willing to pay for the service.

Worried already? Let’s lighten it up by going through the solution to these challenges. Cause labor rates can either save your business or make you hit rock bottom  – like LITERALLY!

The Wait is Over – Auto Repair Labor Rates in Pennsylvania

The average Pennsylvania labor rate is between $75 and $125 per hour. It is slightly lower than Cali and NY. However, the rates fluctuate depending on the type of services and areas.

  • In Philadelphia, labor rates are among the highest in Pennsylvania. Independent shops in the city charge approximately $110 to $120 per hour. 
  • In Scranton, an independent shop charges around $100 per hour. 
  • In Lancaster, a fleet service charges about $85 per hour. 
  • In Brookville, an independent shop charges approximately $75 per hour. 
  • In the Pittsburgh area, the average total repair cost is $631, which is $170 higher than the nationwide average of $461. 

For more details, you can check out motor.com!

Tips for Setting the Right Pennsylvania Labor Rate

Let’s talk about the common and equally important factors that should be considered when setting labor rates for your automotive repair shop.

Labor rates can be adjusted depending on the rent and utilities cost of the shop. Moreover, advanced tools & equipment and skilled techs can influence the rates.

You need to consider the income levels of customers. They vary of course but you can set an average. Researching the target market is as essential as covering the costs of your shop.

You must be transparent about the services and associated costs. More details means gaining more trust of the customers. After all, they deserve to know what they are paying for.

Lastly, you need to keep an eye on the competitors. This way you can adjust the rates accordingly from time to time. 

And don’t forget to offer your customers a comfortable waiting area, faster turnaround time, and exceptional customer service. These things matter to them while they wait for their vehicles to be serviced.

Use the Technology for Ease!

If you find all of the above a little too much, then you need an alternative.

The alternative? AUTOMOTIVE LABOR TIME GUIDE!

These are industry standard guides that provide average time estimates for common repairs and maintenance tasks.

These can be used for:

  • Accurate estimates
  • Right labor costing 
  • Improved workflow

You can easily prevent overcharging or undercharging. It is beneficial for both customers and your techs.

The customers won’t have to pay more or less. Similarly, you won’t be paying more or less for your labor. 

Luckily for you, Torque360 has an integrated automotive labor guide!

You can easily identify the hours needed on a vehicle and the costs associated with it. This way, you will make it easy for everyone – yourself, technicians, and customers. 

Final Thoughts?

Well, we hope we have covered most of the things you might be facing regarding auto repair labor rates in Pennsylvania. If you wanna know more about Torque360 and how the labor guide works in detail, well you can always book a personalized demo and surprise yourself with what we have to offer!