its not REALLY an efficient market...the economics you learn in school don't always apply in the real world though some of the principles do. Prices are set based on the consumers' next best alternative. The dealer sets the stage...and if they set it at $150/hr then the consumers next best alternative will be to do to an indie. The Indie, in order to woo consumers away will set it just slightly below the dealers price. Say a consumer is indifferent between taking it to the dealer at $150/hr or to an Indie at $120/hr...then the Indie should charge $115/hr and woo those customers away. Setting the hourly rate at $55/hr (drastically lower than the dealer's price) will add only a marginal number of customers and the indie will actually be leaving money on the table.

So they aren't conspiring...but dealers are inflating prices because they can. Not to mention your car sits in the shop for 5 hours and your bills has a total of 6 hours of labor....hmmmmm how does that fuzzy math work out??? The dealers go by the "book" which states a serpentine belt replacement is 2.5 hours and an alternator is 3.5 hours. Just because the dealer can do it in less time doesn't mean he'll charge you less!

posted by 207.183.11...

• This is why your dealership charges +$95/hr in labor..., James D, Thu, 4 Dec 2003 09:30:33
  • Good - more power to the middle class! Pay 'em more! nm, BrianD, Sat, 6 Dec 2003 10:01:03
  • I'm happy to pay for competent work..., nt moore, Fri, 5 Dec 2003 10:53:36
  • Does car mechanics deserve to live (make a living)?????, SWEDECAR , Fri, 5 Dec 2003 09:28:57
    • in defence of the computer whiz ..., Trev, Fri, 5 Dec 2003 09:59:41
      • Not to mention all of the new glasses prescriptions, .., RS , Fri, 5 Dec 2003 10:54:13
        • that too ;-) .. but the point being .. it doesn't come, Trev, Fri, 5 Dec 2003 11:56:05
          • Totally agree ..., RS , Fri, 5 Dec 2003 13:11:15
  • I'm a Benz Tech and I like my job, Jordan, Fri, 5 Dec 2003 00:55:54
  • and why not??, tomg, Thu, 4 Dec 2003 20:45:49
  • As a radiologist friend of mine said, when he replied t, TimBrown, Thu, 4 Dec 2003 20:26:07
  • there's an extreme shortage of qualified techs, WASSAAB, Thu, 4 Dec 2003 20:20:52
  • you have got to DIY your Saab! n/m, Dean, Thu, 4 Dec 2003 19:40:33
  • The whole system is, Rafe, Thu, 4 Dec 2003 17:11:41
  • I'll trade checks with most techs anyday...., Mike Lynch , Thu, 4 Dec 2003 16:06:44
    • absolutely, come see my hands, KL, Fri, 5 Dec 2003 05:57:06
  • Look at it this way..., Noel, Thu, 4 Dec 2003 15:46:52
  • Still doesn't add-up......, zeke, Thu, 4 Dec 2003 15:06:27
  • try being a tech sometime...., buck, Thu, 4 Dec 2003 14:56:17
    • Not trying to put all dealers down, SaabCPA, Thu, 4 Dec 2003 15:05:34
  • I gladly pay my indie the big bucks as long as (+), Vlad, Thu, 4 Dec 2003 13:56:43
  • that's why I DIY, KL, Thu, 4 Dec 2003 13:29:49
  • Re: This is why your dealership charges +$95/hr in labor..., Kimberly, Thu, 4 Dec 2003 11:47:59
    • What are "costumers"? Just kidding, SaabCPA, Thu, 4 Dec 2003 11:54:57
      • oooppppsss like I um the furst tooo mak a spelin mistuk, K, Thu, 4 Dec 2003 12:03:58
  • Re: This is why your dealership charges +$95/hr in labor..., steveC, Thu, 4 Dec 2003 11:12:36
  • I wouldn't begrudge these techs their money, RS , Thu, 4 Dec 2003 10:03:56
  • Mechs in Metro area MN get, BobH, Thu, 4 Dec 2003 09:52:59
  • Don't know about the rest of the world (outside LA) but, SWEDECAR , Thu, 4 Dec 2003 09:45:25
    • Where do you draw the line...., James D, Thu, 4 Dec 2003 09:53:14
      • It is a free market >, ChipJ, Thu, 4 Dec 2003 10:24:41
        • When you only have two options..., James D, Thu, 4 Dec 2003 10:55:48 <-- Viewing This Message
          • Sorry JamesD but that is incorrect >, ChipJ, Thu, 4 Dec 2003 11:57:31
            • I rebut...., James D, Thu, 4 Dec 2003 12:29:19

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