The labor rate at most of the dealerships where I used to do warranty claim inspections was $100.00/hr. or more, recently. Now, I'll bet the flat rate mechanics they employ aren't making 50% of the labor they book every day, like I once did when I was bending wrenches for a living. A journeyman mechanic provided his own tools, work clothes, and other necessities to get the job done, paid his own income tax (all of it) and if he wanted to go on vacation he just took a week off without pay. The shop provided him with a place to work, jacks and stands, and other major equipment. The mechanic was "contract labor" to the shop's bookkeeper. The shop got the other half of the labor charge, and the profit on parts sales.
Once amenities like uniforms, sick leave, unemployment insurance, retirement plans, and other perks started becoming popular, the flat rate percentage had to come down so the shops could stay in business.
Jerry
