Labor rate ...how much is too much?

[KIMO]

Yeah, yeah, I know all you mechanical magicians do your own, but for the rest of us, what labor rate does your dealer charge?

When you answer, please give the hourly rate, whether you use a Sea Ray dealer, a local mechanic or a mechanic at the marina where you dock/store your boat. If you know, please add whether they charge book rates or actual time for the repair.

To prime the pump, out here in Southern California, the Sea Ray dealer charges $150 per hour, book rates. On a single engine stern drive a 50-hour service is about $750 plus parts and $150 to lift the boat. A 100-hour is about $1250 plus parts and lift.

How much do you pay?

 

[comsnark]

In Jersey they charge in the 70-90 range per hour.

Of course. . .you know that the techs are NOT making that much. While some work is done by skilled individuals that are probably making 25-30 per hour, much of the drudge work is probably done by individuals making $10-$15 per hour.

Don't get me started on parts. My dealer charges for masking tape, cotter pins, wash cloths and soap so the techs can wash their hands.

I think there are tool charges as well. Not to mention the "environmental service fees", "cleanup fees", "setup fees", take down fees, estimate fees . . .fees to estimate fees. . .

 

[jrirvine1]

How much is too much?

To answer this it would be necessary to know what the dealers’ labor burden is. That is, all the costs of operation, overhead, profit, insurances, labor and such that business is “burdened†with.

Any decent accountant will tell business owners that they should charge between 2.5 and 3 times the workers hourly rate and more for high overhead operations. If a first rate mechanic is most likely making around $35 / hr, then I don’t mind paying around $100 or so for this service, but I do think that $150 would be too much.

Consider supply and demand also play into this equation. If a certain service dealer is the only certified or capable one in the area, then they can of course charge what the market will tolerate.

 

[Dave S]

You are going to get all different kinds of rates depending on the part of the country you are in as well. But as far as I know, my dealers rates are right around $100 hour. They also don't charge for the haul out.

I am more curious what a "50 hour service" covers? While it is prudent to have certain items serviced on a regular basis or at specified hours, I have found it pays to understand exactly what needs to be serviced and when it needs to be serviced and try to avoid these "bundled" packages which many times are overkill. All of the intervals and hours are spelled out pretty clearly in your owners manual.

If I was facing labor rates and haul out charges like you, I would want to be sure that I only had things done when necessary.........my 2 cents for the day.

 

[Searay Jim]

I agree that you should understand what each "bundled" includes and make yourself aware of what needs to be done. I'm not a real fan of bundled service, although, there are certain critical things that need to be done at certain intervals, either/or time or hours.

That said, $150 an hour sounds very high, for this area. As was said, it's regional. $80-$100 is what I would consider more the norm. in this area.

You also have to consider what else they do, like haul out, as mentioned above.

 

[comsnark]

Oh one more thing. . .

. . .the actual labor rate doesn't matter in my view. What matters is the quality and the smartness of the work.

By quality: If I get something fixed, I don't expect it to break. If it does break again, I expect them to make it right *immediately* at no charge (note: I have problems on the second point both with cars and boats -> Oh. .that's not XYZ we just fixed. You are now experiencing problem with PDQ. Your estimate to fix PDQ is $1250).

By smartness of work: High charges for blatently stupid, unnecessary work. Dumb work is "charging" to check an air filter on a car. Estimates that only resemble the final bill in the names on the top. . . .

I guess boat mechanics are just like car mechanics. . .. hard to find a good one. When you do. . pay them whatever they want.

 

[JeffM]

Any decent accountant will tell business owners that they should charge between 2.5 and 3 times the workers hourly rate and more for high overhead operations. If a first rate mechanic is most likely making around $35 / hr, then I don’t mind paying around $100 or so for this service, but I do think that $150 would be too much.

In addition, consider that in many areas of the country this is a seasonal business, and in order to keep quality mechanics the marinas/dealers need to pay them year-round.

That probably isn't as much an issue for you in So. Cal as elsewhere, but I think it moves the multiplier closer to 3, or perhaps higher. In your area, cost of living may be the difference, but I agree $150 sounds high. In our area it's $80 to $100.

Jeff

 

[capz]

Good point about avoiding bundled interval service charges. Dave's right about doing only what needs to be done. Tell the service manager you'd like to be notified of other problems the mechanic comes across then go from there. If you tell them to "do whatever needs to be done", they will zing you for trivial, unneeded services, as well as possibly overcharge.
I'm attempting my re-commisioning myself. Out of curiosity I asked my service manager to send me an estimate of what he thinks needs to be done to get my boat back in the water. Here's what I got from him.

Total cost of PRE-LAUNCH (not including hauling, tune up etc.)......$1700

includes: remove and dispose shrinkwrap $120 :smt043
install batteries $80 (see emoticon above)
service sea cocks $40 wd-40, grease? :smt017
bottom paint (definitely don't need) $378
clean, wax $378
sea trial $80
extras (rags, paint, environmental surcharges etc) $400

$1200 in labor costs

or.......... $1200 in fuel @ $4/gal, 300 gallons
no-brainer for me provided I do it right

My point isn't to knock trained service. Just know exactly what they're doing and make sure they won't do a thing without your signature.

 

[RobF300]

it obviously costs alot of money to operate on the water these days.

You will always pay a established marina that operates legally alot more money then a fly by night mechanic working out of the back of his station wagon.

As for the little things you might think are extras to beat you up- look at the whole picture.

Such as the shrinkwrap removal- cut the wrap, remove the supports, remove the strings, remove the bubble wrap, put up antennas/radar, canvas, eisenglass, , remove any glue from tape, wrap up the wrap for disposal, tie it in a tight bundle, pay to get it hauled away, deal with the customers who claim you now damaged thier canvas or antennas, etc..

Now imagine doing that for a couple hundred boats in the marina- SOMEONE has to pay for that time dont they?

 

[RobF300]

as for labor rates around here $125-$145 an hour, I see places now charging a Verado surcharge of $15 an hour as well :huh:

 

[capz]

It took me 20 minutes to take off the shrinkwrap. They don't even use tape. They do a very good job shrinkwrapping. It took me another five minutes to shrink the ball down and load up the scraps. So there's 200 boats paying five times the labor rate for that? The reason they charge so much is the majority of their customers probably don't even look at the bill. Generally, boaters who have their boats professionally maintained and stored have the type of money to do just that. That's what we're paying for.

 

[RobF300]

It took me 20 minutes to take off the shrinkwrap. They don't even use tape. They do a very good job shrinkwrapping. It took me another five minutes to shrink the ball down and load up the scraps. So there's 200 boats paying five times the labor rate for that? The reason they charge so much is the majority of their customers probably don't even look at the bill. Generally, boaters who have their boats professionally maintained and stored have the type of money to do just that. That's what we're paying for.

it took YOU 20 minutes because your boat is a 27, imagine on a 48 or a 50, and a bridge boat no less.
It can take 20-30 minutes just to get all the canvas up on one of those.
And those that dont use tape up against the hull of a larger boat have slight abrasion damage when spring time comes from the wrap vibrating against the hull all winter.

Dont shoot the messenger!

 

[Petep]

In Detroit it's $85/per hour @ the SR Dealer-but they are worth it!

 

[Petep]

Rob, what is the Verado surcharge? as in Verado Outboards??

 

[capz]

Rob you're right, some boats could take an hour or two. In my case, I would have been charged a grossly inflated rate had I signed that estimate. And yes, they would have charged me that much no matter how long it took. The point is to just be aware to some extent what they're doing, and let the service manager know you are aware. He'll think twice before getting careless with the time sheets. Don't get me wrong, I don't skimp on caring for my boat. I just want the money going to the right places.

 

[RobF300]

problem is you are losing all the mom and pop places.

The problem with mom and pop places is that unfortunetly you cant
be too nice and still make some money.

You should go over your bill carefully and try to pick out what you dont need or can do yourself.

And yes- the verado surcharge is added when working on those motors :huh:

 

[mrsrobinson]

Richmond, VA here. Local shop is $95 an hour and we have never been happy with their service. We take ours 2 hours 'down river' to a shop that charges $75 an hour and we are happy with their service.

We have never used the local Sea Ray dealer other than to purchase parts.