Let's get serious

[Pete Masterson]

Mike, the going rate in this area is $110-120 per hour for similar
service providers. So, I'd be willing to pay $110-120 per hour to CCW
in the LA area (which has a similar cost structure to northern CA). I
don't know what the prevailing charges are in Ft. Valley, GA -- but
I'd guess that $90 per hour is in the appropriate range.

Where is your shop located? What is the rate you normally charge?
What rates do competing shops in your area charge? There is a
"location utility" involved. I might think the $90 shop rate in
Louisiana sounds "cheap" -- but I'm not in Louisiana.

The rates aren't created in a vacuum. I'm self-employed. The work I
do has a national average cost of about $63 per hour. The regional
price ranges from an average of $40 to $80 per hour. I charge $120
per hour -- and get it -- because that is the market clearing price
for the demand for my services (it helps that I'm a published author
and recognized as an authority at what I do). When my rate was lower
(and closer to the average for my region), I was turning away 3 jobs
for each one I could accept. Now, I don't need to work as hard and I
don't need to reject as many jobs (due to lack of capacity) because
my rate acts to dampen demand for my services.

The same is true for labor rates in an automotive/heavy equipment
shop. I can charge a premium over the national and regional averages
due to my qualifications. But, the price I charge will reflect the
supply (hours available to work) and the demand (clients wishing to
hire me). Likewise, a shop with special BB knowledge may be able to
charge a modest premium over the prevailing charges in any particular
area, but they won't be able to sustain an excessive charge simply
because they have better qualifications. Potential customers will
make a value judgement based on their perception of the going rates.

A Blue Bird owner in Indiana, Colorado, and California will each have
a figure that they consider fair -- but it's based on their
experience with local shops. A Blue Bird owner from Kansas or
Mississippi might consider me crazy to think $120 per hour is fair --
and I might think that $80 or $90 per hour (my guess at Kansas or
Mississippi shop rates) is cheap.

Pete Masterson
'95 Blue Bird Wanderlodge WBDA 42
El Sobrante CA
aeonix1@...



On Jan 6, 2008, at 9:50 AM, Mike Hohnstein wrote:

> It's pretty simple Masterson, what are you willing to pay for a
> dedicated BB tech to deal with issues particular to BB??
> I see some are getting off on tangents regarding this thread, and I
> would ask those who have a point of view to save it and post what
> they are willing to pay. Not interested in anecdotal comments
> about RV related services. We are talking Wanderlodge exclusively
> here.
> My shop does such work and I'm interested in what the "community
> considers fair", as I'm sure the new stewards of Wanderlodge do.
> MH
>
> ----- Original Message -----
> From: Pete Masterson
> To: WanderlodgeForum@yahoogroups.com
> Sent: Sunday, January 06, 2008 11:38 AM
> Subject: Re: [WanderlodgeForum] Let's get serious
>
>
> While I certainly don't expect service to be free, a rate that is
> reasonable in relation to other heavy equipment service providers is
> appropriate -- possibly with a modest premium for special "BB"
> knowledge/experience.
> <snip>


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