What's your labor rate?

The voice comes over the phone, the question  simple and to the point. "What is your labor rate per hour?"
Generally speaking, when the conversation starts like that, it's already bypassing all the relationship building, the trust added value you bring to this repair is absent as well.
I dislike starting out like that. It puts me on the same category as everyone else, good bad or indifferent, just answer the question!
I wouldn't  mind is so much if it weren't for the fact that a lot of the people who ask, are the ones who make more per hour than what you are charging ourselves.
Have you ever noticed that?

In this case, the question came from a local divorce attorney. He was trying to figure out if he should take on the project himself or farm it out. It was the valve cover gaskets on his Mercedes that he had considered taking it upon himself.
Out of frustration and not really even knowing why, I asked him, "Since you are asking me what my labor rate per hour is, what about yours, what is your labor rate?"
He was so proud when he told me he'd been a lawyer for  6 years now, and his labor rate was $475.00 per hour. Lest we forget there is a minimum retainer of $5000.00 he said!
I have to admit I almost lost it!
The people who bitch the most about your rates already make more per hour than that which you quoted. Why is that?
For the record, the average labor rate around Ventura is $120-148.00 per flat rate hour. Add another $25.00 to that rate for European vehicles.

I've talked to other repair shops that would quote $90 over the phone only to bill every hour at 1.5 times the actual labor and in essence, making that hour be worth $135.00 which is the going rate.
But why is it that some people in our trade have to resort to hiding the real number? The short answer is. PEOPLE!

They understand McDonald's cost to produce one 32 oz of soda is around 4 to 5 cents and yet, they are okay with paying $2.75 for that drink.  They know Starbucks famed Latte cost them less than $.25 but they consider $4.25 a fair price for such luxury. I wish they could understand we need to make a fair mark up on our parts so we can continue doing business. You can do it for less occasionally, but you won't last long if you do it long term.  If you fail to meet that formula consinently, we are certain to close the doors in a near future. Unfortunately, so many business owners do not have the discipline nor the training to understand, you have to uphold those prices in order to be around to provide a service to your clients.

  I'd like to see someone going to a hamburger place and tell them they are bringing their own soda mix, "Can I just get the cup and water to mix it with?"
Apple didn't get their trillion dollar evaluation by charging you a fair margin for their famed X iPhone. Their times 3 or 4  formula works great for their sustained growth.