Discussion:
Help with Flat rate/ Quote times

Patrick,
I have been in this business 33 years and have found that different makes and model forklifts will not always take the same time to do the same type of job on.
There are some Hyster trucks that will take up to 50% more time to do a brake job on that a different Hyster truck of the same size.
The same goes for engine r & r, lift cylinders, transmission overhaul and things as simple as a valve adjustment.

My suggestion is to spend the time getting pictures of the components you wish to repair and see what all is involved with dismounting, remounting and the actual repair.
It is also a good idea to contact the local dealer if the forklift is not the brand(s) you sell and ask the service manager or shop supervisor about times.
I have a good working relationship with my competitors and normall get a straight answer.
I also return the favor when asked to do so.
I give my technicians up to 1.50 hours for a pm service on some trucks (depending on type of environment they operate in).
If you ever saw a forklift used in a cement plant you will see it takes 15 to 22 minutes to just blow the cement out of the radiator and off of the engine and related items so a proper pm can be completed. Different dealers have different pm programs also, time required depends on what you do during a pm.

Good luck!
Glen
  • Posted 21 Jul 2005 20:13
  • Discussion started by glen_c
  • Pennsylvania, United States
Showing items 1 - 9 of 9 results.
Patrick,
If you are using the factory standard times guide 10% and end up making a reasonable profit you are doing good.
For some repairs on newer equipment I have found that the factory guide is more of a "wishful" time than a real time, even with 10% added to it.
Bear in mind a 10 hour suggested time for a particular job may end up being a 20 hour job if the unit has been in a cement plant, foundry or chemical plant for any length of time.
I have also found that the factory ways of performing the repair are much differnt than real world ways of completing the same repair.
It is not unususal for us to exceed the factory times by 50 - 60% on some units.
When that happens I contact the factory rep or warranty department and expalinthe diference in out time vs their time.
I also question our time to be sure we didn't do anything that would have added extra time that may not have been required.
We also sell a product that has a questionable policy of not covering diagnostic time or transportation to/from the ship if the unit must be repaired in the shop.
The vendors goal is to save money, our goal is to at leat break even on warranty repairs and make a reasonable profit on repair jobs.
  • Posted 5 Dec 2005 22:26
  • Reply by glen_c
  • Pennsylvania, United States
Just my 2 cents...

I profoundly dislike the flat rate system as a technician and never entered the automotive industry for this reason. The flat rate system only does harm for all involved save for the business itself. The mechanic suffers because he is no longer paid for every hour worked, he is paid by the job, which means he will tend to rush through the job as fast as he can either to maximise his pay or minimise his losses. This can and often does have horrible consequences to the customer, their machine, the technician's stress level, and the technician's family. It's great for the business however, they can now hire as many technicians as they want to keep pace with fat times, because it now costs very little to have them sit in the lunchroom playing cards in off-peak periods, because they no longer make an hourly wage, it's piecework. This happens in automotive dealerships all the time. I have to say I find this practice unethical.

Patrick, I hope you take this post to heart and consider the cost in real terms of the flat-rate system to the people involved. Actual billing has soft benefits that are difficult to justify in pie charts and plot graphics, but in the end result in happier workers and fewer callbacks to the machine, which drives loyalty to your business on both sides.
Good grief, charlie brown...
steponmebbbboom@hotmail.com
Hi glen...

Ok, I'l send you my email so you can input your thoughts and opinion over my queries. Rodger had already emailed me your email address. Thanx...
  • Posted 23 Nov 2005 17:11
  • Reply by chris_a
  • Philippines, Philippines
Rodger,
I should have thought about that myself.

These kind of forums are good for the material handling industry industry.
It is an easy way to pass on information and gained experience to those just starting out in the business.

Keep up the good work.

Glen
  • Posted 22 Nov 2005 22:47
  • Reply by glen_c
  • Pennsylvania, United States
Thanks Glen, i have passed your email on to Chris. We automatically remove email addresses just to stop spammers getting at us all, and to stop people using the Forums to advertise. Thank you for being involved.
  • Posted 22 Nov 2005 22:38
  • Reply by rodger_l
  • Queensland, Australia
Forum Administrator
I see that my e-mail address was removed from my first reply.
Please look on the web for CSI Enterprises, my e-mail can be found there.
Glen
  • Posted 22 Nov 2005 22:05
  • Reply by glen_c
  • Pennsylvania, United States
Please e-mail me your address and I will be happy to send you my personal thoughts, observations and experiences.
My reply here would be very long winded and take up a lot of space.
Glen
[email address removed]
  • Posted 22 Nov 2005 22:02
  • Reply by glen_c
  • Pennsylvania, United States
Hi glen & charlie!

I've read that you had been in this business for quite some time now... I am just wondering if you could share some opinion with me on how to come up with a sensible forklift rental marketing plan. Here in the Philippines, we are an exclusive distributor of a one particular forklift brand made in Japan. The company would like to make a business expansion by putting up a rental subsection. The idea is to acquire brand new forklifts and second hand forklifts that must be rented out to prospective clients. The problem is, I need to konow how to start looking at the rental market? How I can identify the niche market in forklift rental? There are quite a few companies here in the Philippines doing forklift rental, I need to know on how I could break into the market? What are the things I should do to make our company's forklift rental look competitive and eventually be known in the market. I need you to give me some advices on how I should go about with my marketing strategy
  • Posted 22 Nov 2005 16:42
  • Reply by chris_a
  • Philippines, Philippines
Excelent reply Glen. I could not agree with you more. Most dealer principals have a hard time understanding this logic.

Patrick, I also have 30 years experience in the industry and could take Glen's reply and place "..." around it.
  • Posted 22 Jul 2005 04:06
  • Reply by charlie_j
  • California, United States

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