For many managers, raising the hourly rate is a source of sleepless nights. Their fear? Triggering a negative reaction from their customers.

Yet, the hourly rate should be seen as your company’s salary. It reflects the value you place on the time spent repairing or maintaining your customer’s vehicle. It must cover a large portion of your expenses and investments, while ensuring your shop’s profitability.

When you reduce the hourly rate for certain services, you are directly reducing your salary… and therefore your value.

Take engine oil changes as an example. They are often offered at a discounted price to attract customers. The result: you work for an hour, but only bill for half an hour. You’re already running a deficit. Over time, these accumulated deficits become very difficult to make up.

Why volume isn’t enough

Some business models get by thanks to volume: large quantities of engine oil, rebates, and employees paid at lower wages. But for an independent tire and repair shop, this model is rarely viable.

An hour worked should, as much as possible, generate an hour billed. What really matters is your actual hourly rate, because it measures your performance. The closer you get to 100%, the stronger your financial health will be. This will allow you to grow, invest, and provide your employees with the benefits they deserve.

There’s no magic formula. Every business must find its own strategies, establish a plan, and set clear goals to reach that 100%. And why not involve your team in this reflection?

Remember: your hourly rate is not just a number. It’s the value of your time… and the key to your success.

Now it’s your move!