Different shops operate different ways. New car dealers often pay by the job on warranty repairs, so you are correct, if a mechanic can 'beat the clock', he makes out. In some cases, mechanics discover shortcuts the factory isn't aware of, but in some cases, to beat the time allotment means skipping somethings, as the factory's time allotment is usually on the 'skimpy' side of things. Many dealer mechanics have to work extra hours to make decent earnings. They of course also have to pay for their own tools, so when the factory comes out with a new type of fastener, or a procedure that requires a special tool, they have to pay for that too. Dealerships make more money on non warranty work as they can charge beyond what the factory deems appropriate. In a private garage, mechanics are generally paid by the hour, so the high labor rate not only has to cover wages for the time the mechanic is working but also the time the mechanic is sitting idle. In both worlds, a large part of the labor rate also covers overhead, which includes the building and all it's associated costs (heating, cooling, electricity, taxes, insurance, mortgage and maintenance) and non mechanical help, such as cashier, custodial duties, service manager and parts runner. In small shops one person may handle some or all of these non mechanical duties, while larger shops will require more help. Then you also have employee costs such as insurance, worker comp, and unemployment insurance (depending on state laws). I have a friend who owns his own shop, and it's a case of feast or famine, and he's always on the look out for mechanics, as they will pack up their tools and move down the road if they find someone who will pay more per hour.

So while $95 an hour sounds like a huge amount of money, in the over all scheme of things, it's not as much as it seems. But it a deciding factor in what I have done, and what I do myself. And around here, it's more like $120 an hour.

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So many S&W's, so few funds!!