Beware of Cheap Labor Rates

Labor rates are affected by the quality of the technicians hired. By keeping technicians up to date on their training, providing the proper tools and equipment, meeting environmental standards, adequate liability insurance, increased workers’ Compensation, proper disposal of hazardous materials, and many other issues, your dealership will provide the customers the assurance of no “unacceptable downtime” If a lower rate is offered, but the technician takes more time to do the job because he hasn’t been appropriately trained, where is the gain for the customer? Hazardous waste disposal is the user’s responsibility from start to finish.

If your service provider needs to perform a major cleanup because they fail to follow proper disposal procedures and do not have the assets to pay for it, the customers will participate financially based on the amount of business done for that customer.

 Workers’ Compensation is costly and, in some states, almost prohibitive. If your service provider doesn’t have it, his employees would fall under the customer’s Worker’s Compensation if a technician were hurt on the customer’s property.

Adequate liability insurance is a must and should be a requirement for any vendor on your premises. Be aware and ensure the coverage is sufficient, or in the customer’s attempt to lower costs, he may incur some costs that will make the initial price look small.