The first step is to figure out the minimum labor charge to break even.

You can reference an auto repair labor guide, like this one, if you’re unsure how long a job will take.īut remember, time only accounts for half of your labor cost equation since you have to set an hourly rate that makes financial sense. This will factor into your rate if you price your hourly fee higher for complex repairs. So it’s crucial to predict an accurate time for labor on each job.ĭon’t forget that longer projects come with more complications. Labor costs significantly impact the total auto repair cost. This auto repair labor guide simplifies this process, so you make a profit on every job. However, it often takes more than multiplying your hourly rate and adding the price of parts. When it comes to estimating the cost of auto repair labor and materials, things can seem straightforward enough. Mechanics often don’t need an auto repair labor guide for these services as it’s common to price these jobs at a flat rate. Timing belt and water pump replacements.What are the most common car repairs?Īuto repairs are done to fix normal wear and tear. In contrast, most estimates only require a customer’s signature as an indicator of approval. In short, a bill lets your customer know how much money they owe you for a repair.Īnother difference is that your customer needs to send you payment for the bills you give them. In this case, a bill to your customer.Ī bill recaps the actual costs of a job, where an estimate predicts how much the job will cost. While the document of final costs you create is known as an invoice, it’s a bill to the recipient. The best way to handle this situation is to communicate any updates on repair progress so your customer knows there is additional work to do and isn’t surprised when you send your invoice. Upon vehicle inspection and disassembly, it’s common to find more areas for repair not included in the original estimate. Even experienced mechanics can’t see all the damage until they disassemble the vehicle. However, the purpose of auto repair quotes is different as they give customers and insurance companies an expert opinion on the total cost of auto repairs.Īuto repair quotes are referred to if disputes arise over service or billing, which happens more often than you think. In this sense, auto repair quotes are similar to estimates. As a result, estimates may not cover all the expenses needed to finish a repair. The difference between an auto repair estimate, quote, and billĪn estimate is just that - an estimate or prediction of the timing and cost of a job. This document is shared with the customer who signs it as authorization for the shop to begin the repairs. It kicks off with an auto technician predicting how long it takes to complete the repair and adding up the costs involved.Īn estimate should contain the above details and a disclaimer stating that the final costs may be different. The definition of an auto repair estimateĪn auto repair estimate is a contract between the repair shop and the customer.

Invoice pro adding labor