Labor charges

sheepfarmer

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I am generally happy with the work and charges from my dealer, but my most recent bill made my hair curl. One small part of it was a sudden 25% increase in the per hour rate for labor, from $80/ hr to $100/hr. This was for routine work, oil change, fuel filter change, swap mower deck for snowblower, not especially complicated.

So my question is, would you guys that have had work done recently give me some idea what the going rate is for labor charges?

Thanks much!
 

Jchonline

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It is probably more accurate for you to check other area dealers (even if non Kubota) for their service labor rate. That will give you a far better idea. Rates can vary significantly by region and state.
 

200mph

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Just a thought... It might also mater if they charge for actual time versus book rate.
 

sheepfarmer

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Appeared to be calculated by "actual" but that is part of the problem, 8.8 hours, way longer than he was here, and adding in travel time. I have already had a conversation with service manager, but perspective is needed. So any numbers would be helpful.
 

SidecarFlip

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My dealer (Carleton Farm Supply) is 90 an hour. Not sure about the JD dealers around here but I bet they are close. I know Freightliner of Toledo (where I retired from) is $125.00 per hour for trucks and 135 for Freightliner chassis motorhomes. That is plus parts.

If I lived closer, I'd come do it for you no charge. Don't like to see any female's taken advantage of even though I think their rate is in line with what is being charged today.
 

Mister

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If you're that concerned with $20 an hour extra, why aren't you doing such routine maintenance yourself? It's pretty easy, and in many ways much more convenient than loading the tractor on and off a trailer and then having to deal with them fitting you in.

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sheepfarmer

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If you're that concerned with $20 an hour extra, why aren't you doing such routine maintenance yourself? It's pretty easy, and in many ways much more convenient than loading the tractor on and off a trailer and then having to deal with them fitting you in.

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I'd like to, and took off the snowblower last spring, but lack of strength stops me in the middle of even simple things. Hand surgeon said if I didn't stop the farm stuff I'd be really sorry. Damn near dropped the subframe on my foot getting it off. Tendon in my wrist snapped cutting carrots :( I'm very very lucky, but I try to pick my battles. When I bought the second tractor the dealer was offering service calls for routine stuff, reason why I bought from them.
 

torch

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The cost of doing business varies widely by jurisdiction. Prevailing wage rates, benefits, property and business taxes, etc. etc. etc. all influence things. There's a limited number of Kubota dealers to compare to, I'm sure, but how does his hourly rate compare to similar businesses in your area, such as auto mechanics?

20% seems like a pretty hefty jump. Was there a change in ownership or management? If the service department starts losing customers, they may have to rethink his pricing structure. The old saying "an item is only worth what a buyer and seller agree it is worth on any given day" applies to services too.

If you can't do it yourself, is there a third alternative? A local handyman who can swap out the blower and change the oil for a reasonable fee? I know a heavy equipment mechanic who moonlights doing automotive work in his own garage for $25 an hour, maybe you could find someone similar through a want ad?
 

sheepfarmer

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Yes I can find alternatives. As I mentioned in first post the hike in hourly rate is a small part of my unhappiness with the bill. The rest I should take offline. But I was interested in what is average since that part came as a surprise to me.
 

RCW

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If you're that concerned with $20 an hour extra, why aren't you doing such routine maintenance yourself?

Mister - Ms. sheepfarmer is older than I am, and I’m 54..
I’m guessing you are also much younger than she is.
She is very capable, knowledgeable, and a valued member here on OTT.
I also know some physical limitations dictate service work that she needs hired out.

Us younger guys might be able to do service work ourselves. Sheepfarmer can give you pointers when you get in a jam.

You should understand your audience before making off- hand suggestions...
I’ll leave it at that.



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Last edited:

Mister

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Jul 13, 2018
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I'd like to, and took off the snowblower last spring, but lack of strength stops me in the middle of even simple things. Hand surgeon said if I didn't stop the farm stuff I'd be really sorry. Damn near dropped the subframe on my foot getting it off. Tendon in my wrist snapped cutting carrots :( I'm very very lucky, but I try to pick my battles. When I bought the second tractor the dealer was offering service calls for routine stuff, reason why I bought from them.
Makes total sense. Sorry to hear about your health issues

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Mister

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Mister - Ms. sheepfarmer is older than I am, and I’m 54..
I’m guessing you are also much younger than she is.
She is very capable, knowledgeable, and a valued member here on OTT.
I also know some physical limitations dictate service work that she needs hired out.

Us younger guys might be able to do service work ourselves. Sheepfarmer can give you pointers when you get in a jam.

You should understand your audience before making off- hand suggestions...
I’ll leave it at that.



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I'm not doing a background check on a forum member before I ask a simple question. They responsed, I responded. Enough said. No need for the lecture...

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D2Cat

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I'm not doing a background check on a forum member before I ask a simple question. They responsed, I responded. Enough said. No need for the lecture...

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No background check is necessary. The comment you made in the form of a question is elementary information anyone with equipment would know. Maybe next time look at a persons post count to determine if they perhaps already aware of your comment. Because if they do, and you still say it, it's a condescending statement.

OP asked about the cost others pay a dealership. Anyone is well aware there are other, and often less cost, alternatives.

Go home for Christmas dinner and after the meal in discussion time, make a comment like you did here to your mother... see how she responds!:D:D
 

North Idaho Wolfman

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$100 an hour for service work is about normal.
8.8 hours for oil and filter changes and swapping mower to blower... That is one heck of a slow service tech, I would ask the service manager if they normally hire sloths to do work? :rolleyes: ;)
 

lugbolt

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This is gonna be long, but it's my personal experience with dealer work, and will help explain some things. You've been warned.

I started in the dealer stuff in 1992 I think it was. Stayed with it until 2008, went out on my own, then got called in to the same dealer I left to fill in while they searched for a tech. Small dealer but VERY busy. They never found a good tech and time passed me by, and I stayed. Still "there". Labor rate was $80/hr for a long time, and we did things in a combination of flat rate and actual time. Flat rate is a guide that only has to be used for warranty. It is figured by an experienced tech doing the same job 3 times consecutively, in a controlled environment (clean, tools out, etc)-basically opposite what a real world warranty repair would be. I use the guides to judge how long a job should take. 87% of the time I'm personally within flat rate. 13% of the time, I exceed the flat labor time. So if I quote someone 2.6 hours to remove a backhoe frame, and do it within that timeframe, they get charged for 2.6hr. If I do it in 3.9 hours, they get charged 2.6. If I do it in 2.3 hours, they're charged for 2.6. We try to keep it close to or a little under the quoted estimated cost. Keep reading...

In early 2018, the tiny dealership was sold to a company who owns several other dealers. The owners are good people. Good enough to keep us all there. Country folk for the most part. Anyway, not long after they took over and got their feet planted, the labor rate went to $95/hr. Many including myself were against it but I also understand how business works...has nothing to do with greed and everything to do with paying the bills. Their bills are MUCH higher than ours are, in fact, 99% of us don't understand what the break point every month is....and trust me, even in that little bitty place, it's almost 6 figures, monthly. So every dime has to count, and that is both good and bad.

Now that they've gotten settled, the labor went up, parts went up, and freight costs will rise too on 1 January, which will likely trickle down to most every other aspect of business. When the business's costs rise, they don't just "eat" it. They pass it down to the consumer. A business-of ANY kind-MUST turn some sort of profit in order to survive yet so many people don't like it. I wish I could work for free too, since I have a giving nature. But it don't work like that, unfortunately.

When the old boss ran the dealer, all that mattered was the bottom line. I personally had access to everything he did. I did parts, service, warranty, a a small amount of admin, ran back and forth between the departments constantly. Occasionally did sales. My brain moves fast so it was ok with me, just a lot of walking (~9-10 mi/day) and a lot of putting "fires" out (upset customers). Because I had access to both departments and then the parts department continually busy with phones and customers-such that they couldn't pull the parts that the shop needed, I got my own stuff-and that eliminated a LOT of errors.

Now, the new company wants to totally separate each department and I understand that. BUT the downside, we're still a little tiny dealer, with 2 parts guys who STAY busy all the time. So now, if I'm working on something and need a quart of oil or a spark plug, I carry the work order to the parts dept, put it in the "need parts" bin, and then go back to the shop & work on something else until parts show up. If I have multiple repairs going on and everything's waiting, and can't move any of them, sit & wait. I've had to wait for 2-3 weeks for a quart of gear oil to finish a customer's repair because the parts guys are too busy to pull the shop's parts. But I'm not allowed to, and I do what I'm told. The reason I haven't done it the "old" way is because these new guys need to know how it worked before and they also need to know how it's gonna work with the way THEY want it done. Yeah I am mad about it because the people who pay our bills don't like to wait and I'm the one who's got to take the brunt of the complaints. Frustrating? You bet!

So now that it takes forever to get parts, and now that we have to clock each and every service/repair job, if that job is just sitting there waiting for, parts, authorization, whatever...it's on the clock...and that time gets billed to the repair order. Customer calls and is long winded? Clocked/billed to his work order. Cleaning excessively dirty equipment? Clocked and billed at the posted labor rate. That's how simple repair jobs can get expensive. I absolutely hate it with a passion. It's not fair to the customer. It's not fair to the techs when it's out of their control. I work commission so I have to make every second count, and I work fast enough to make a little money yet slow enough to do a thorough repair. There is that fine line. Unfortunately, the delays in between are what costs. There is more to it, but that's the way most dealerships work. The little bitty mom & pop shops are the best ones, IMO, for many reasons, but they're slowly going away as bigger businesses are looking to expand constantly.

The service department was restructured in our case. I was a do-it-all tech. I was a writer, manager, and a tech, every day. Sometimes we'd take in 45 units and only get 2 or 3 out. Now, since the dealer is "bigger", they hired on a writer/manager and I'm the tech. That's great, I get to work all the time instead of answering DPF regen question phone calls 10x a day. But the downside is, that the only computer work I get to do now is to clock in and clock out. Because of that, any notes that need to be added to a R/O are done by the manager/writer. And he doesn't do a stellar job of communicating with the owner of the equipment as to what the problem, cause, and repair are. Lack of communication is the #1 cause of loss of a customer. People will pay more if they know exactly what's going on, but if they're in the dark, they're questioning things-and I don't blame them one bit. Similar to a shade-tree mechanic who'd say "I replaced yer breather filter"...yet they don't say why. Way I do things is to explain why. "found that engine was running weak because of a lack of engine airflow which was caused by an excessively dirty air filter.....replaced air filter, then re-tested". That way when the owner reads the R/O, there is no question. Thorough communication is paramount! I guess I do things differently than many. Fine. I AM different, because I genuinely care about other peoples' stuff and their needs.

The automotive industry has everyone thinking the same way. Spoiled if you will. A tiny tractor dealer such as the one I'm at is NOT going to work the same way because of a lack of space and lack of manpower. Adding space and a fancy new building is going to cost millions. Then adding 3-6 more techs, 2 parts guys, and another sales person? Potentially another $450,000 per year (just in wages alone at roughly $50k/yr)-and who's paying for it? The consumer....again, that's how business works.
 

Beaudeane

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Mar 9, 2018
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Not had to pay any at my Kubota dealer as yet but my local Freightliner shop now gets $140 an hour. Not sure they’re worth that but I do have to pay it at times I can’t do the repair myself
 

hodge

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Prices are pretty normal, but a 20% increase in labor should have been brought up before the work was started. That's significant, and so is the time consumed for the work. Hopefully, your dealer will adjust the bill.
 

shiraz627

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When I was at the dealer in Jacksonville FL the rate was $95/hour.