Pricing is the most awkward conversation in the workshop: charge too little and you are funding other people's cars; charge too much without explanation and customers walk. There is no single right number - but there is a good method for making your labor pricing predictable and defensible.
Hourly rate or flat rate?
- Hourly rate: the safest option for diagnostics, rusted bolts and anything hard to plan. Decide how diagnosis time is billed, and be consistent about it.
- Flat rate (book time): quicker for standard, well-known jobs - brakes, timing belts, clutch replacement. You quote by the job; speed is your profit.
- Combination: many workshops charge a fixed diagnostics fee that is credited towards the repair if the customer goes ahead - it protects your time from quote collectors.
How to calculate your hourly rate
- Your target annual revenue and the hours you can realistically bill
- Rent for the workshop and storage, plus utilities
- Equipment: lifts, tools, diagnostics and their maintenance
- Software and data: parts catalogs, repair databases, subscriptions
- Waste management, insurance, accounting
- Marketing and your booking system
- Your own development: specializations others do not offer
Divide your monthly costs by your realistically bookable hours and you will see a floor below which working simply is not worth it.
A minimum charge is not arrogance
A "five-minute job" still needs the car taken in, the fault confirmed, the work checked and documented. The minimum charge covers exactly that - and it filters out customers who are only collecting quotes.
Make your pricing visible
Publish your labor rate and a price list for common services - transparent pricing builds trust and spares you the "how much would this be?" call flood. If your services have different prices, in Appointio you can set a price and duration per service, so clients see exactly what to expect while booking.