 Thanks for tuning back into the channel today. We've got something really cool. We're going to be going over the flat rate system What is it? How do techs get paid by it? I'm also going to clear up some of the misconceptions that everybody has about it alleviate some of the bad ideas that people think oh you get paid flat rate That means you cut all the corners. No, that's not what happens So we're going to go in through that and I'm going to give you guys some tips and tricks on how I make it through The flat rate system and how I make money doing it first. We're going to go over and de rust belt the old Duramax So first off in this video I just want to warn you guys that this is not a video on how to cheat the system or how people can cut the flat rate system back Or how mechanics are just shysters and they're going to cheat every single penny out of you This is just going to describe on how the flat rate system works. So what is flat rate these days? It is how 95% of technicians in the US at least are paid so for instance when a vehicle comes into the shops will say just for Argument sake it needs a water pump. You go to that specific vehicle We have different programs online that are our booktimes So the book time on that specific vehicle will say it pays 3.2 hours you get it in and you start taking it apart and It ends up taking you right at like two hours now that technician still gets paid 3.2 hours because he did it more efficiently you still get paid what the book time pays Now on the flip side if you kind of dawdled around you took Nick Sure, you know poo break or you just you know ran into some issues and it took you five hours You still get paid that 3.2 hours. So in most circumstances it kind of evens itself out Then there's also going to be warranty time. So warranty time when you work for a specific manufacturer Chrysler Ford Toyota, whatever it is, they get paid a different amount of book time per that manufacturer so because you are a specialized or certified mechanic in that specific field You should be able to get things done in a faster time because you know you've worked on them quite a bit more So when the book time actually pays 3.2 hours Your Chrysler Ford book time might actually only pay you like 1.9 hours because you know, you're the expert It's not always how it works and it kind of sucks in our respects But the system is a little bit broken and it needs you know tweet here and there But that's how some manufacturers are able to trim a little bit of the fat off to be able to make a little bit more Money on their bottom line as well. I don't blame them, but it sucks for us technicians So if you're a technicians who's starting out in the field and you get tossed into becoming a flat rate mechanic You are going to be overwhelmed First off, you're gonna get thrown into this and the first week on the job is gonna be gut-wrenching You're gonna get through Monday and you're gonna make like four or five hours You need through Tuesday you make five more hours six more hours and you're gonna be like man I really have to make up some time So there's a couple of quick tricks that I can help you to make up some time as well The first and most biggest thing that you have to think about when you work flat rate is you always have to be busy These guys that are sitting around on their stool No, not like this or anything They are not gonna be making money if you're sitting there typing on your cell phone talk to miss Sally Whatever it is for the parts desk, then you are not making money Anything that a normally hourly guy does around the shop, you know, they do all changes take out trash That's stuff that you don't make money on so you have to be wary of that one so always keeping busy and make sure that you multi-task if you've got a Different car sitting here in the shop waiting on parts be bringing in another vehicle or planning out your day from there on Make sure you check with your service advisor service writer Whatever it may be to see what kind of things are coming in that you need to work on the rest of the day So you can plan things out being prepared and planning things out is going to be the best thing that can help you Doing multi-tasking when you have that quote You're trying to get it from the parts advisor and you're waiting on them to get that quote be bringing in your next car be Organizing the tools for whatever job is coming up as you progress in your career You are gonna know that okay for this job. I'm gonna need a 22 millimeter wrench a 31 millimeter wrench and that's gonna come with experience So that's why I said beginning off You're gonna be a little bit overwhelmed because you're not gonna know those little things here and there and that will come with experience So make sure you calm down and be wary of that one next recommendation I'm gonna have for you guys is to stay organized if you don't have an organized toolbox You don't have organized bays. You're gonna lose money left and right and that's in time You got to think of it as time is your money the better you organize and better you keep your time the more money You're gonna make so that extra five minutes You try to find your 22 millimeter wrench that you left under another vehicle or you have thrown in an extra drawer Because you were just in a hurry that's gonna end up losing your time So keeping your tools nice clean organized and as well as your bays nice clean and organized You're gonna do a whole lot better Make sure you keep track of the same in Respect parts when you take parts off a vehicle bring an extra table over I know it may take up a little bit of extra space But organizing everything out is gonna save you a lot of time and and room in the long run Make sure you keep a track of all of that keeping organized also leads into organizing and keeping track of your hours now Hours wise in the flat rate system. You have to keep track of it most dealerships around the nation here are Still keeping track of their repair orders on paper systems not always digitally So you have to keep track of your hours the system is run by people people make mistakes So you have to look out for yourself So when you get done with a ticket you make sure you fill it all out And then you have to keep track of what hours that you make so the software that I use I'm gonna show you here in just a second is what I keep on Google documents to keep track of all of my hours Take a look at this and this is what I use for tracking my hours This is a an online form set from Google documents. All you have to do is create a Google form I put it in my hours Put in the day's date. I put in the RO number. You're making model Description of the repair and the amount of flat rate hours That it pays or at least that I estimate it to pay because of you know warranty time So then you're gonna hit submit and then there is a responses tab that you're able to Click over to once you create that form and it's gonna keep track of everything here in spreadsheet form And then if you know how to use, you know, it's pretty much documents and Excel Online and it's gonna have all your totals made in a single column over here And then you just make a simple algorithm To keep track of the total hours So, you know, just because everybody is human your service writers your advisors, they are human They do make mistakes So you really do need to keep track of this stuff and this is how I specifically keep track of it It's nice because it's here on my computer right here in my toolbox as well as on any online platform So from your smart phone your tablet, they have the Google app or it's just anything that is pretty much internet web base You have access to that. So if my computer is down for some reason, I can flip out my phone and put in everything I need through Google documents in keeping track of that time You also have to think about you don't want to lose time This is the biggest and most important thing that you as technicians Want to remember that don't make mistakes. If you make mistakes, you're gonna have to fix something for free If you have to spend time working on a vehicle for something that you messed up or you misdiagnosed That is gonna be the biggest most absolute waste of time in your day If you just hurry up read a code it says oh Crankshaft position sensor correlation you're like, oh, I guess it needs a crankshaft position sensor because that's what the You know auto parts store diagnosis sheet would say no you have to go through the correct diagnostic process Now starting out techs like if you're in a lube tech position or tire center You have to be making lists for yourself as well to make sure that you don't miss certain things If when you get done with the job, you can't for certain say. Oh, yes I tighten that drain plug. I tighten that oil filter. I air it up the tires Then you need to go back through and check it taking that extra 30 seconds minute two minutes Whatever it is to check your work is gonna save you tons of money in the long run because Guarantee you it will happen. You will miss something. You'll mess something up So if you check back over your work You're gonna you're gonna find those things that you missed and you're not gonna lose time One for you and you're not gonna lose out of money for your shop when you forgot to train that tighten that drain plug And then three miles down the road it pops it out drains all the oil out now your shop has to buy a $4,000 engine for that piece of junk Toyota Corolla So don't make those kind of mistakes for the older senior techs Same thing comes with diagnosis when you diagnose a vehicle You usually have gotten pretty good in the aspects of yeah, I know what these vehicles need You know, I see it 37 times But that one time that you don't run through the whole diagnostic process is the one time You get your ass bit you don't want to have that happen to you because that's gonna be another Hour-and-a-half diagnosis when the customer comes back a week later in their check engine light comes back on again now You have you losing time and money the shop losing time and money you have a pissed off customer And you're gonna have to put parts on and your dealerships gonna lose money because they have to put it on for free Parts are free your labor is free You just wasted two to three hours of your week in a flat rate time So you might have just missed out on getting a really awesome job like some tune up Suspension work something like that where you could have made five hours. So and you're eight hours in the hole So don't be making dumb mistakes always go through the whole process If you take your time do your whole process double-check your work It won't bite you in the ass make sure you keep up on your training and do your diagnostics properly One of the last things that you can do is to be able to put in that little bit of extra effort I know everybody always says yeah, I put in a hundred and ten percent But what does that mean when you're working flat rate? That means when you're doing that oil change and tire rotation You rotate the tires, you notice Oh, there was brake dust all over the wheels and now my grubby fingerprints, you know Kind of made big old finger smudges all over the wheels wipe them off It takes 30 seconds and a rag and the tires and the wheels and the customer are gonna be cleaned Every once in a while that customer will notice that little bit of extra effort that you put in or That little bit of extra stuff that you do for a job Putting a little anti-seize on these bolts to make sure that you know, they don't seize up further You know in the future studs lug studs You're gonna have these people do these jobs later down the road They're like well this technician did a really good job putting this stuff together Make sure you put in that little bit of extra effort. It's gonna go a long way Last but not least and I've alluded to it in a couple of other points in the video is just don't become complacent as You get more comfortable in the flat rate system as you get more comfortable in the certain jobs that you're doing you're gonna Try to cut corners a little bit and that's what the flat rate system is about in Trying to do things faster and not cutting corners quality wise but quantity wise Buying some of those special swivel sockets that can reach into spots a whole lot easier rather than having to take that extra Alternator off or have to take something else off. That's where your experience is going to come into play I know right off the bat You guys are gonna be frustrated just because you don't know those little tips and tricks of the trade But it will come over time Don't start cutting corners on quality and missing out on things just to start making that time throughout the week It's not gonna be great for you. It's gonna hurt you. It's gonna hurt the dealership. It's gonna hurt the customer So why would you want to do that? Don't become complacent in your work and your work will Gradually get better. You're gonna learn how to do these things. You're gonna get better at them So putting the time in is gonna get you experience. Make sure you do it the right way Some of the things that you'll come to find out and a whole lot of people have tried to remind me of this throughout my Toolbox tour and other videos that your toolbox and your tools, you know, they aren't gonna make a good technician No, that's true. Your training will if you do your training right you keep up on your training It's gonna take care of you. You don't cut corners and you don't cut corners on the Quality of work that you do your works gonna, you know, blossom into something that's a lot faster and your Employer is going to notice it as well the better work the least amount of comebacks that you have your employer is gonna Have more trust in you generally they're gonna want to give you more money So that's gonna help you in the long run as well So those are the tips and tricks that I had for you guys the flat rate system It is kind of a crazy thing and you're gonna be overwhelmed by it. Just follow these few simple tricks and You will come out on top. I promise you that I've been doing for 10 11 years now And the system is working for me. It can work for you, too I'll probably do another video sometime in the near future on what I think is broken and what needs repaired in the flat rate System as a whole but that's for another video and for you guys to tune in and figure that one out I appreciate you guys tuning in. That's all I got for you today If you like this kind of content make sure you hit the thumbs up Make sure you hit the subscribe and make sure you turn on that Bell notification So you can get notified of when I come out with cool awesome new content for you guys to enjoy. I Appreciate it. Thanks again, and you guys stay awesome