Alex How are flat rate prices calculated?
What Is Flat Rate Pay?
- To calculate the flat rate, you can calculate the number of hours a project will take to complete and multiply it with your hourly rate.
- In other cases, there’s a set pricing for specific jobs and value of the project may be considerably more than the estimated hours needed to complete it.
How are automotive technicians paid as flat rate?
Automotive technicians are often paid a flat rate fee, while others are paid with a automotive technicians salary or an hourly rate, or even time billed. A flat rate employee gets a predetermined percentage of each flat rate job they complete.
How does a flat rate compensation plan work?
A flat-rate compensation plan assigns standard times to complete a repair job. Techs earn a specified dollar amount for each job, regardless of how long it takes, as opposed to getting paid hourly for the time actually spent to complete the repair.
Do you pay a flat rate technician when he is idle?
You don’t pay a flat rate technician whilst he is idle. In fact you can have excess work force; the expense of having two flat rate technicians waiting for work to do is no more expensive for the business than one. When you’re “on Flat Rate” you ebb and flow with the business, “no turn no earn”.
Which is better flat rate or hourly pay?
Technicians working under flat-rate or incentive pay systems usually earn more than employees in shops with hourly rates — provided they are confident and work reasonably quickly. Most companies use one system. However, even in many flat-rate shops there are tasks for which pay is based on work done on the clock.
Automotive technicians are often paid a flat rate fee, while others are paid with a automotive technicians salary or an hourly rate, or even time billed. A flat rate employee gets a predetermined percentage of each flat rate job they complete.
A flat-rate compensation plan assigns standard times to complete a repair job. Techs earn a specified dollar amount for each job, regardless of how long it takes, as opposed to getting paid hourly for the time actually spent to complete the repair.
How are flat rate technicians compensated in New Hampshire?
The flat rate technician employment policy should address how the technician is compensated for work that is not repair related and is not assigned a flat rate, such as cleaning. In New Hampshire, for example, it’s up to the employer whether this extra work is included in the preset flat rates, or whether this work is compensated separately.
Why do mechanics like the flat rate system?
Mechanics like this system because an efficient mechanic can flag more hours than he/she actually worked. This is due to the fact that under a flat rate system, the same amount of time is flagged for a job whether the job takes more or less time than the flag time, which is fixed.