Shop labor pricing?

[sales guy]

Originally Posted by 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.

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]

Originally Posted by oldpotatoe

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.