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Old 04-17-2008   #1
JET
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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.
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Old 04-18-2008   #2
Kracka
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Re: MAPerformance Labor Rate Increase Effective 4/15/08

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Originally Posted by JET View Post
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.
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Old 04-18-2008   #3
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Re: MAPerformance Labor Rate Increase Effective 4/15/08

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Originally Posted by Kracka View Post
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!
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