Shop labor pricing?

[pjbaz]

I'm not trying to out specific shops, but the HS install thread had me wondering. Well, a comment that $20 for a HS install was stupid cheap had me wondering what most shops charge per hour for labor.

I do almost ALL my own wrenching so I have no idea, but it seems to me that knocking out a HS replacement would probably take about 20 minutes if the (experienced) wrench stopped for a drink and a smoke. That would essentially mean $60/hour.

So, what's the going rate for an hour?

[jtakeda]

Headset removal and install is $50 at my shop

[sales guy]

I think for some cities/shops the pricing is based on the other shops in the area.
We have some shops here who are pretty cheap and some more expensive. And yes, you get what you pay for many times. But if you have 100 customers coming by for cheap service VS the other shops might have 10, even if you lose half you are still up.

I remember working for Kozy's in Chicago in the early 90's. We used to call around a the time for bike and service pricing.
Now, since I am not a "shop" I don't have set service prices. Although with a new showroom in the works I will have to do something soon.

Another thing, for a headset, it would take me 20-30 minutes to install. So at $60 an hour, that would only be $30. If the frame doesn't need facing, it could possibly be faster. If it's an integrated headset or something, and has a split ring crown race, even faster as you don't need a crown puller. So many variables here.

I agree the OP of the headset thread should have gotten better service. You never leave the bike like that or the customer unhappy. It should leave better than when you started working on it.

[Mikej]

Yeah, $20 is a steal - I do all of my own work, but I’d gladly pay 20 and wipe off the grease. Crown removal tool and proper press and cups is about $ 400+ In tools.

[Ralph]

$20 is ridiculously cheap for that job. BTW.....You can't do it in 20 minutes.

After you finish your previous job....you have to make a determination of what you do next. Then you have to go find the bike. Then you have to go find the part. Then you have to get a work site ready for the work. For this job....maybe get some facing tools out just in case. You do the work....then you test the bike, and clean it up a tad......put your head set tools away......You might spend the best part of an hour doing this 20 minute job. Maybe customer has a question.

Personally......I almost invested in a bike shop once. Didn't because I did not see how an investor could make any return. If an owner owned some land and a building already....maybe you can make a living.....but you would need to charge almost the same shop rate as an automobile shop. And stay busy with lots of volume. Just the kind of environment many say they don't like in a bike shop.

[fa63]

I work one day a week at a bike shop my buddy owns, just to help out. What I have observed is that there are some jobs which take longer than expected but you can't really charge full price for (gluing tubulars is a good example of this). On the other hand, there are other jobs that a good mechanic can knock out in very little time (a basic tune-up for example). In the end, it all sort of balances out and I think the hourly rate the OP mentioned is not too far from the real number.

[Bruce K]

Most shops I’ve seen have a menu of specific prices for specific jobs. There is usually a posted rate for “off-menu” items.

I’ve seen rates as low as $65/hour to up to $100/hour.

BK

[charliedid]

$85 generally

[zzy]

As the person who made the 'stupid cheap' comment, this guy gets it:


After you finish your previous job....you have to make a determination of what you do next. Then you have to go find the bike. Then you have to go find the part. Then you have to get a work site ready for the work. For this job....maybe get some facing tools out just in case. You do the work....then you test the bike, and clean it up a tad......put your head set tools away......You might spend the best part of an hour doing this 20 minute job. Maybe customer has a question.


You need to have the tooling, possibly chase out the fork threads, know how to check a headtube for possible reaming and facing, know the correct threading for the headset, ISO vs JIS crown sizes, etc, etc. Point is: $20 for all that barely covers the labor cost.

[false_Aest]

Last year I had to come up with an average for hourly labor across the US.

It averaged out to just under $60/hr. That's just a simple average though -- more dealers in NY, Boston, SF, LA than Indiana, Oklahoma, Kentucky or South Carolina.

[pjbaz]

I wasn't trying to jack anyone up or insult their shop prices. :fight:

I do think there's quite a variety of labor rates and service for your money brought up here, and that's why I asked. It's interesting to see the differences.

The guys talking about shops facing the HT, etc. are IMO rarer than those that just hammer out the cups and press in a new set. Admittedly, I don't work at a shop and can't possibly see even 1/10 of what they do in a week, but I don't think I'm too far off. Hopefully, I am.

Like I said, I usually do my own wrenching and while I'm definitely not a pro I've managed to keep my fleet rolling ... so far. I'm also fortunate to have picked up a fair amount of shop tools on the cheap over the years which helps a lot.

[oldpotatoe]

I'm not trying to out specific shops, but the HS install thread had me wondering. Well, a comment that $20 for a HS install was stupid cheap had me wondering what most shops charge per hour for labor.

I do almost ALL my own wrenching so I have no idea, but it seems to me that knocking out a HS replacement would probably take about 20 minutes if the (experienced) wrench stopped for a drink and a smoke. That would essentially mean $60/hour.

So, what's the going rate for an hour?

My rate was $60 per hour..A headset install would be about $30...1/2 hour. IF the headtube/FCR seat was prepped..add $20 if not.

[HenryA]

$20 is ridiculously cheap for that job. BTW.....You can't do it in 20 minutes.

After you finish your previous job....you have to make a determination of what you do next. Then you have to go find the bike. Then you have to go find the part. Then you have to get a work site ready for the work. For this job....maybe get some facing tools out just in case. You do the work....then you test the bike, and clean it up a tad......put your head set tools away......You might spend the best part of an hour doing this 20 minute job. Maybe customer has a question.

Personally......I almost invested in a bike shop once. Didn't because I did not see how an investor could make any return. If an owner owned some land and a building already....maybe you can make a living.....but you would need to charge almost the same shop rate as an automobile shop. And stay busy with lots of volume. Just the kind of environment many say they don't like in a bike shop.

Very much this.
Bike shops exist in the same world as all the other service businesses. Similar rents, same electric bill, same taxes, etc. And most important, the same number of hours in the day. $20.00 for that job is way too cheap.

[oldpotatoe]

Very much this.
Bike shops exist in the same world as all the other service businesses. Similar rents, same electric bill, same taxes, etc. And most important, the same number of hours in the day. $20.00 for that job is way too cheap.

NOT trying to argue but not really. My biz model was Hoshi Motors here in the republic..Honda only...and 5-6 car dealers but 35 car repair places. BUT bike shop 'retail' isn't car repair 'retail', but destination store..no wandering around the car repair place 'showroom' buying stuff. Repair place for bikes in kinda poor location? Sure, you bet. Less rent, fixtures, payroll(no sales people)...but ya gotta get the people into the place...

BUT when you don't pay a lot for a 'service', you get crapy service, sometimes.

[paredown]

I always like to remind people that there is a world of ancillary costs behind the particular repair--including setup and such as Ralph mentioned, but also wear and tear on tools, and (in the case of headsets), covering yourself for that rare instance when something does not go according to plan (a tool slips and you end up repainting a frame, the tubing splits, you have to restart three times because you can't get it started in straight because the old one was slightly buggered etc etc). Same thing with construction--where insurance/workman's comp etc adds a huge burden, and you have similar risks when you start cutting into some guy's house to put in a new door or whatever. Mostly it happens how you expect; sometimes it does not.

Fixed price service is based on averages--and sometimes the 'average' service will be a bear to complete.

We recently had some body work done on our new-to-us car after someone backed into us in a parking area and left no note. It was sold to us as a Certified vehicle with a clean Carfax--turns out it had been hit in the front, and the body guy was telling me after that he had to work really hard to get his repair to come out as well as it did, because he was fighting the effects of the previous (not so professional) repair. I suspect that at the set rate of reimbursement from the insurance company that he did not do so well on our car-but will make it up on another one where the repair goes swimmingly.

[sales guy]

I always like to remind people that there is a world of ancillary costs behind the particular repair--including setup and such as Ralph mentioned, but also wear and tear on tools, and (in the case of headsets), covering yourself for that rare instance when something does not go according to plan (a tool slips and you end up repainting a frame, the tubing splits, you have to restart three times because you can't get it started in straight because the old one was slightly buggered etc etc). Same thing with construction--where insurance/workman's comp etc adds a huge burden, and you have similar risks when you start cutting into some guy's house to put in a new door or whatever. Mostly it happens how you expect; sometimes it does not.

Fixed price service is based on averages--and sometimes the 'average' service will be a bear to complete.

We recently had some body work done on our new-to-us car after someone backed into us in a parking area and left no note. It was sold to us as a Certified vehicle with a clean Carfax--turns out it had been hit in the front, and the body guy was telling me after that he had to work really hard to get his repair to come out as well as it did, because he was fighting the effects of the previous (not so professional) repair. I suspect that at the set rate of reimbursement from the insurance company that he did not do so well on our car-but will make it up on another one where the repair goes swimmingly.

Carfax only works if things are reported. And it's not mandatory. Totally voluntary with them. Even at the dealership. I learned this the hard way as well.

[Ralph]

I understand we're just talking here.....not really running a bike shop, or working in one. However...after I retired, I did work in a shop for a few days....just to see if it would be a "fun" part time job. I quit soon after....discovered it was mostly just a job...and I didn't really need a job anyway...especially one that was work. A bike shop cannot be a "hang out" place for wanna be racers.....or a business designed to give the owners and workers access to cheap parts. It has to be a real business....with attention to the business plan.

There is a bike shop in Central Florida....a large shop....that has been successful for many years. And I mean successful just like any other great business. And it helps we are in an area of year around cycling, huge numbers of riders, and county governments that have been expanding a trail system for many years....and also promoting the trail system for transportation and family recreation. And a huge Tri and X scene...as well as road riding.

The owner has been a friend of mine for about 40 years. At first he was just a bike shop....working his butt off crazy hours.....barely making a living. But he had this novel idea, a terrific location....and he eventually wound up owning most of the city block for current shop.

He explained to me he was NOT in the bike business. He is in the business of marketing recreational products to affluent buyers. His large shop is mostly full of bike related clothing, shoes, helmets, accessories, repair and maintenance, racks, skate boards, and all kinds of stuff. There are a few bikes around, but the expensive enthusiast level bikes are in an adjoining building where the bike fitting is done. More ordinary bikes are around the floor, but not intimidating to beginning riders.

After he got the business figured out. (at least for him...where he wanted to be in that industry), he was able to run it like a business. He has retirement plans, insurance, and other benefits for his employees. I imagine as the business changes, he will move with the changes...E bikes, etc. And BTW....He generally does not get involved in the sponsorship of racing (riders ungrateful and waste of money) ...says it's not his customer base. Although he has been known to help support a needy athlete if it is kept quiet. Anyway....he's a great guy. Some of you on here will know him.

[FriarQuade]

Most shops in BendOR are $60-$90 and hour and unfortunately you don't get what you pay for around here.

[HenryA]

NOT trying to argue but not really. My biz model was Hoshi Motors here in the republic..Honda only...and 5-6 car dealers but 35 car repair places. BUT bike shop 'retail' isn't car repair 'retail', but destination store..no wandering around the car repair place 'showroom' buying stuff. Repair place for bikes in kinda poor location? Sure, you bet. Less rent, fixtures, payroll(no sales people)...but ya gotta get the people into the place...

BUT when you don't pay a lot for a 'service', you get crapy service, sometimes.

Well,yeah...

Just trying to illustrate that a bike shop has overhead like all businesses. And its gotta be paid, so the shop has to make some money. If average retail customers had any idea about the costs of running a business they might not have the same expectations. In this case, if the shop had put the head set in correctly, returned a clean bike and charged $50.00 we would never have this thread. (No offense intended at all to the OP).

The other thing is that there is a way to serve your customer and make money doing it. It mostly revolves around good communication skills and actually using them.

“Put a head set in this bike”.

Is lots different from:

“Put a headset in this bike, install the fork, adjust the head set, adjust the front brake, check the stem and bolts for proper alignment and tightness and give the whole bike a good wipe down but not a complete wash”.

If the service person suggested the later, it would be accepted happily by most customers and the shop just made more money and the customer leaves with a smile.