All shops have a door rate and some are adding in diagnostic rates. But one shop coach wants you to add another: An EV rate.
The argument for a diagnostic rate is getting stronger as more vehicles require thorough and time-consuming diagnostic work, noted Alan Beech, an automotive aftermarket coach with Beech Consulting.
“It’s usually the guy who does diagnostics in your shop is probably your most expensive guy,” he said as further justification for having a higher rate.
But the concept of an EV rate can’t be ignored by shops if they’re offering services to electric vehicles.
“As we step into this new world that we’re headed towards, and you’re doing EVs, I strongly recommend you have an EV rate. What you will find on doing EVs is that you won’t have the same amount of parts. You won’t have a 50-50, parts-labour split,” Beech explained. “And the parts that you buy are oftentimes regulated.”
He used the example of Tesla. When you call the company to order parts, they ask for the VIN and immediately know who the registered owner of the vehicle is. They then send an email to the owner about the parts being bought — along with the price of those parts.
So shops are put in a position to sell the parts at cost. That means selling the work at a higher rate, Beech explained.
He also advocated for shops to get the training and not leave money on the table by letting customers think the dealers are the only ones capable of working on EVs.
“Don’t assume for just a moment that the dealer has the corner on the knowledge. Just like you guys in this room know that on previous technologies, the dealers don’t have the corner on the market,” Beech said. “And you could tell me countless stories of situations like this.”
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