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-   -   MAPerformance Labor Rate Increase Effective 4/15/08 (http://www.mitsustyle.com/forums/showthread.php?t=19152)

v8klla 04-16-2008 06:25 PM

MAPerformance Labor Rate Increase Effective 4/15/08
 
Effective 4/15/08 our shop labor rate has changed to $110/hr.

This change was made based on a variety of factors including rising overhead and overwhelming demand in the area. We will also be pursuing other time consuming ventures including research and development of new products and tuning services which will comprise the majority of the free time we will likely experience from this change. If you have any questions or concerns please don't hesitate to ask.

Chris Carey

Kracka 04-16-2008 06:28 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
God damn thats a huge price hike! Is this inline with the industry standard? Are you eventually planning on getting out of the service/labor market and focusing on parts, tuning, and R&D?

DSM_421 04-16-2008 06:45 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Quote:

Originally Posted by Kracka (Post 237656)
God damn thats a huge price hike!

Haha, no crap!

Goat Blower 04-16-2008 06:51 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
The price is whatever the market will bear. You'll find out soon enough if it's too high. :D

v8klla 04-16-2008 06:54 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
I agree the change is price is substantial. However, in comparison to a dealership that performs strictly general maintenance and repair we are still below average. We feel that this price increase is more than justified given our capabilities and the quality of work we perform and in the future we will aim to position ourselves as the best option in regards to quality and time frame for completion in the Twin Cities.

DSM_421 04-16-2008 06:56 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Quote:

Originally Posted by v8klla (Post 237659)
I agree the change is price is substantial. However, in comparison to a dealership that performs strictly general maintenance and repair we are still below average. We feel that this price increase is more than justified given our capabilities and the quality of work we perform and in the future we will aim to position ourselves as the best option in regards to quality and time frame for completion in the Twin Cities.

So I'm guessing an AWD dyno is in store?

4Las90 04-16-2008 07:01 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Quote:

Originally Posted by DSM_421 (Post 237661)
So I'm guessing an AWD dyno is in store?

Very Soon! More than likely before the end of the summer.

santa 04-16-2008 07:03 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Quote:

Originally Posted by DSM_421 (Post 237661)
So I'm guessing an AWD dyno is in store?

Its in the mail dude.... :)

santa 04-16-2008 07:04 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Quote:

Originally Posted by 4Las90 (Post 237663)
Very Soon! More than likely before the end of the summer.

Damn you Bill!!! hahahaha

v8klla 04-16-2008 07:05 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Quote:

Originally Posted by Kracka (Post 237656)
God damn thats a huge price hike! Is this inline with the industry standard? Are you eventually planning on getting out of the service/labor market and focusing on parts, tuning, and R&D?

It depends on which part of the industry you look at lol. Hi-Tech is at $135/hr and the majority of our suppliers and competitors across the US are inline with $110/hr. Although I wouldn't say we are getting out of the service/labor market we would like to free up some time to pursue our own product line as well as AWD dynamometer tuning.

Chris

DSM_421 04-16-2008 07:10 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Good thing to hear about the AWD dyno, what kind is it? That is something your shop needs very BAD.

4Las90 04-16-2008 07:12 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Quote:

Originally Posted by DSM_421 (Post 237667)
Good thing to hear about the AWD dyno, what kind is it? That is something your shop needs very BAD.

We will be adding another roller to the Dynojet we have.

scheides 04-16-2008 07:13 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
I gotta be honest man, I think the price hike is too high. Be ready to drop it if the work dries up.

DSM_421 04-16-2008 07:16 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Damn I was hoping a DD so you could have compairable numbers to DB.

Anyways I wish the best of luck to MAP! Can't wait to see the RX-7 in action!

vr-4lif3 04-16-2008 07:26 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
No offense but a price change like that is too drastic IMO. That will keep me from putting my car in the shop. However this maybe what you guys are shooting for? No matter what good luck to you guys, and do what you need to do.

v8klla 04-16-2008 07:31 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Quote:

Originally Posted by scheides (Post 237669)
I gotta be honest man, I think the price hike is too high. Be ready to drop it if the work dries up.

To be completely honest we are expecting a significant decrease in labor based on this change, however it will free up time for us to pursue other sources of revenue that are far less stressful on our staff lol. Also, for those that do choose to utilize our services we will be able to schedule and complete jobs at a much faster rate than our competition while still offering the absolute highest level of quality.

Chris

sleepydsm 04-16-2008 09:11 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Makes my over-priced shop look cheap @ $96/hr ;)

turbotalon1g 04-16-2008 09:48 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
WOw, i am surprised a little by the reaction, but that is a huge increase, but a justified increase.

Hopefully this takes you where you want to be guys. Good luck and maybe you will find out who your loyal customer base is and not just the people looking for cheap labor.

niterydr 04-16-2008 09:58 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
I pay $110/hr shop labor rates all of the country. People need to realize that they should pay MORE for skilled labor, not less because it is a nitch. If you don't charge enough to make it worth while and profitable, might as well close the doors.

Shane@DBPerformance 04-16-2008 10:57 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Quote:

Originally Posted by niterydr (Post 237687)
If you don't charge enough to make it worth while and profitable, might as well close the doors.

Exactly, you can go broke sitting at home doing nothing, instead of going broke working 16 hours a day on someones basketcase. Rents aren't going down, property tax keeps pushing them up, electricity and heating costs were insane this last winter, gas prices make driving to work hurt for us and our employees, the cost of metal is going out of control, the profit margin on parts is down to next to nothing, blah blah blah, etc. Just think of the little problems everyone has to deal with on your cars when you do performance work on them, you can end up with 2-6 hour of actual employee time spent on every billed hour because of problems, ordering parts that need to be replaced that weren't originally expected, researching something or just hammering some damn axle.

Shane@DBPerformance 04-16-2008 11:15 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Quote:

Originally Posted by v8klla (Post 237673)
To be completely honest we are expecting a significant decrease in labor based on this change, however it will free up time for us to pursue other sources of revenue that are far less stressful on our staff lol.

Trying to do more dyno work won't help with the stress. :) You get to try to fix mechanical problems on cars(I don't know how many timing belt jobs we have done to cars still on the dyno), while trying to keep track of your plan of attack in the tuning, while not blowing the car up and trying to reach the expectations of a customer who wants a 200% safe tune that makes more HP than someone's they saw on the internet, while trying to figure out why the car doesn't make the power it should, and do it all without costing the customer too much and before the next car comes in. A lot of people don't like to hear that they have the wrong parts on their car or that their setup is untunable or they actually need to install an aftermarket fuel pump after you just spent 2 hours getting the car running and tuning part throttle. Thank god there are Evo tunes to make things go smoothly once in a while, they usually just have boost leaks or improperly installed intakes. Doing a clutch or pulling a motor on a DSM becomes the most relaxing thing you can do. :)

v8klla 04-16-2008 11:33 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Amen to that, the only upside to the tuning aspect is the fact that $150+/hr is an acceptable rate lol.

Shane@DBPerformance 04-16-2008 11:41 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
$200+ in a lot of cities!

HiImBrian 04-17-2008 01:33 AM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
I guess I can see both sides. Obviously, I'm going to have a somewhat bias opinion considering I'm the customer, but I have always looked at map as the best deals in town hands down. Now I feel like you're on an even level as the other shops in town. But it seems like you realize that and that's what you want. My personal opinion is, it's gunna be hard to compete with db as far as tuning goes. Shane is a pretty popular guy and a lotta people refer him to others. Whatever happens, I wish you the best of luck. I'm also hoping I successfully replace my oil pan so I don't have to bring it in haha.

craig 04-17-2008 06:36 AM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
wow prices are going up, good thing I work on my own car cause I couldn't afford that otherwise. Alot of shops are just coming to the point where they know that doing performance mods to cars just isn't profitable. On the other hand any thing to do with cars isn't anymore, good luck with the price hike.

Matt D. 04-17-2008 09:27 AM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
While reading this thread I was hoping to see Shane respond and I'm glad he did. The one thing everyone needs to remember is you have to pay to play. Good work costs good money, and in the end you get what you pay for.

MAP and DB are two of the few good shops we have in the area that cater to our interests, we should feel lucky that they are as fair to us as they are.

v8klla 04-17-2008 09:59 AM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
I'm glad you guys can understand where we are coming from. The last thing we want to do is drive loyal local customers away, as such we are sure to offer labor discounts and specials very often, but we simply cannot handle the demand we are seeing at this point and as Shane said costs of operation are continuously rising. On the upside, if you need to get something done ASAP we will likely be able to accommodate :)

blageo23 04-17-2008 11:32 AM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
I have liked you guys from the start. Best place to get ANYTHING. I feel like you guys tried your hardest to beat anyones price and to be the cheapest around and to bring in as much customers as possible. With this I feel like you are driving out the local customers. I realize the cost of operations is high but lets say you drive out most of your labor business, does the loss outweight the profit from the hike? I realize that you guys know more about your company then I do. As for me, I will continue to buy parts from you guys and work on my own car.

v8klla 04-17-2008 11:47 AM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
As I said before we are expecting a substantial decrease in labor. It sucks that we had to make this change, but as I said we need to pursue other sources of revenue as we simply aren't getting anywhere with the current labor rate in the back shop. We will still continue to offer the absolute best prices on parts, and hopefully down the line everyone can benefit from our ever expanding inventory which is right in your back yards! It is also very possible that we will be offering our own line of performance products in the very near future! I just don't have enough people to do it all and remain the cheapest option :(

niterydr 04-17-2008 12:27 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Suburban chev is $128/hr, hell most dealerships are $100+hr. Labor is going up, either fix it yourself or pay to play.

HiImBrian 04-17-2008 01:02 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
^looks like I can't play as much anymore :( lol

Goat Blower 04-17-2008 02:20 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
I'll vouch for overhead going up as well. I just got a bill from our building manager saying we all owe more for snowplowing costs for fiscal 2007. WTF?

I swear someone's in my pocket every minute of the day and I don't even get flowers and a card.

DSM_421 04-17-2008 03:07 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
I think everyone knows the labor raise had to be done and was justified, atleast I do.

I still believe $110/hr is respectable. I just think that some think it is a big jump from the current rate. I mean after all you made your name being the cheapest labor around. Then you got a bunch of local loyal customers who helped get your company to where it is today regardless of how much you may have profitted.

Also I do agree with Brian that is will be VERY hard to compete with DB as far as tuning goes.

Kevin 1G Drummer 04-17-2008 05:22 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Quote:

Originally Posted by Goat Blower (Post 237778)
I'll vouch for overhead going up as well. I just got a bill from our building manager saying we all owe more for snowplowing costs for fiscal 2007. WTF?

I swear someone's in my pocket every minute of the day and I don't even get flowers and a card.

So does that mean if I give you flowers and a card, I can be in your pocket too? haha jk

Sorry to hear about the price hike guys, I hope you don't lose too much buisness because of it.

JET 04-17-2008 09:24 PM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
I think once you get over $100/hr people's eyes bug out of their heads. This is a strategy for your business, so you do what is needed to acheive that strategy. You guys are thinking long term, and that is good.

Kracka 04-18-2008 12:35 AM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Quote:

Originally Posted by JET (Post 237812)
I think once you get over $100/hr people's eyes bug out of their heads.

This is true. I think MAP really grew their customer base by having such cheap labor rates compared to elsewhere so its a bit of a shock for some to see a 35-40% increase in one shot. But hell, with LSE gone the competition has been lessened a bit so we'll see if the market is willing to support it.

HiImBrian 04-18-2008 01:13 AM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
^I'll be one to say that their cheap labor attracted me. When it came to stuff like changing my clutch, I took to map because it was cheaper for them to do it than for me to waste twice the time doing it. Looks like I'm just gunna be doing more diy stuff when I can.

v8klla 04-18-2008 10:12 AM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Quote:

Originally Posted by Kracka (Post 237837)
This is true. I think MAP really grew their customer base by having such cheap labor rates compared to elsewhere so its a bit of a shock for some to see a 35-40% increase in one shot. But hell, with LSE gone the competition has been lessened a bit so we'll see if the market is willing to support it.

I think you hit the nail on the head, this isn't just a labor rate change this is a positioning change. With LSE closing and our limited staff we just cannot handle the increased demand. When we first started I thought we could succeed by offering cheap labor and relying on volume, but I was new to this industry ;) I didn't realize the stresses involved with a performance shop which range from waiting on parts, to missing deadlines, to warranty issues and beyond. In order to support the demand we are receiving now we would need to expand significantly in regards to technicians and at the $75/hr rate we simply could not afford to do so as said technicians can easily make more than we would be able to offer at the local dealership.

Essentially we were left with no choice but to make this labor rate change and relieve some of the demand. I know it sucks for those that utilized our low labor rates in the past, but we simply did not have a choice.

It is also important to note that we actually like to work on DSM's lol. If you have a project in mind please don't hesitate to give us a call, we can actually offer some discounts for members now!

Kracka 04-18-2008 11:02 AM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Does my discount = a $50 Evo clutch job? ;)
I hope it does!

v8klla 04-18-2008 11:10 AM

Re: MAPerformance Labor Rate Increase Effective 4/15/08
 
Ha you wish ;) Like I said if any of you guys are ever in need of some work done don't hesitate to give us a call and I'll see what we can do.


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