Flat Rate Calculator is
a tool for bodyshops that use a team approach. In other words shops that
use the flat rate system, yet have more than one person working on every
vehicle will find this tool useful. Instead of trying to break up metal
and paint labor and distributing it among different departments and
different techs, shops that use the team approach can use this calculator
to more fairly distribute labor.
Rate Calculator is a simple tool for making complicated distribution of
flat rate hours fast, easy, and most importantly, fair. If you are running
a departmentalized bodyshop, in other words, a team approach, consider
using this calculator and the methods described below to distribute your
flat rate hours among your techs. If your painter is making a lot more
money than your metal techs, and working roughly the same number of hours,
your system may be flawed.
of Flat Rate Calculator
and foremost, Flat Rate Calculator is completely free! Download it
from this website and begin using it today at no charge. Because this
is such a simple tool, and I feel strongly that many shops are
distributing flat rate labor unfairly among their techs, I am giving
let's take a look at the calculator, and then I'll describe how it
the top you type in the number of total repair hours in an estimate.
This is the total of metal, paint, mechanical....etc. This figure goes
in the "Total Hours Paid" box. In the left column you type
in your technicians' names or ID numbers. You can only use the white
colored rows. The "Hourly
Personnel" row cannot be changed. In the next column, "Hours
Worked," type in next to the tech's name the number of hours
each tech actually has into the repair. The "Total Hours
Worked" label and the "Efficiency" label are
automatically updated as you move to the next tech.
next columns, "Extra Hours" and "Total" are
updated also. The "Extra Hours" are the additional hour each
tech should receive based on what he has contributed to the repair.
the very top of the window is a check box called "Distribute
Hourly Personnel Labor." Notice below how everything changes with
flat rate techs all get fewer extra hours. Why have this option?
Obviously, if you have hourly technicians you are not going to
distribute to them extra flat rate hours. That would defeat the
purpose of hourly techs. Hourly techs can be used in flat rate shops
to clean up the building, or to clean up cars. In my shop, I use them
to do both. But to make sure you track exactly how much time each
vehicle takes, you need the hourly techs punching on an off every
vehicle they work on. You may decide to keep the box unchecked and pay
yourself, the shop, the extra labor time the hourly techs would have
had coming if they were paid flat rate.
most hourly techs are paid less than flat rate techs, costing the shop
less for every hour they work. In today's competitive employment
market, with the difficulty shops have finding good help, you may want
to check this box and distribute this extra labor evenly among the
flat rate techs. I do this in my shop. I still get paid for every hour
my hourly techs put into every repair,
but I just don't profit from their work as much. As an added incentive
to keep my good help, I split the extra time among them.
this system works.
system works because it promotes teamwork. Since I developed this
system, my shop efficiency has improved dramatically and my techs work
together as a team much better than before. Here's why.
who think they will benefit by cutting corners or passing their work
on to the next tech in the "assembly line" soon learn that
they just hurt themselves. If my prep person has to do something my
metal tech should have done, chances are it's going to take the
prepper longer to do it, which in turn hurts the jobs efficiency, and
that hurts the metal tech's pocket. Each tech checks the last guys
work because they all know re-dos will cost everyone dearly. Each tech
realizes that what they do affects the other guy's wallet, and what the
other guy does affects their wallet. Soon they learn to work together,
to figure out who does what best. Slackers aren't tolerated by the
rest of the team, and hackers quickly learn to clean up their act
because they lose money when less skilled techs have to fix their
a tech thinks he'll get more of the extra flat rate time by spending
more time on the job, he soon learns this doesn't work either. His
extra time hurts the job's efficiency, which actually reduces his
system isn't perfect. On jobs that just don't go well, everyone thinks
are getting screwed. And if someone screws up in the "assembly
line" you sometimes have to make some manual adjustments to be
fair. For instance, if the painter screws up and has to repaint a car,
you may want to make some manual adjustments so everyone doesn't
suffer. All your techs must be proficient and they must be willing, or
trainable, to work as a team. The key is to have an open book policy,
and to use this calculator as a visual tool to show your techs how it
works, and how everyone's efforts affects everyone else.
Luck. Feel free to email me with any questions, or read my article
in BodyShop Business.
Flat Rate Calculator. It's free!