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Auto Body Estimating Solutions: Excel and OpenOffice.org

Race Club Body Shop Newsletter

Setting Body Shop Labor Rates

We would like to take a minute to talk about setting your body shops labor rate.  It’s common practice for people starting a bodyshop to use the industry standard or the rate the insurance company sets when they write an estimate.

We recommend setting a rate based on your shops situation/overhead.  If you're a backyard pro cultivating the seed of a growing collision repair business, certainly you can be more competitive in price than a shop with 6000 square feet of workspace and 1500 square feet of office.

We attended a conference where they said "don’t charge the industry standard, charge what you need to charge to make a profit".  Doing this will give you a competitive advantage.

So how much do you have to charge?  How do you find out?  Use this labor rate calculator.  Enter your shops overhead expenses and other information and it will tell you how much you should be charging per hour.