Why I Switched My Shop From Flat Rate to Hourly

Flat rate worked in Kevin’s shop for years. But the world outside the shop has changed.

Parts backorders. Fleet approval layers. Training the next generation of technicians.

Jobs sitting in bays waiting on things nobody inside the shop can control. And when that happens, flat rate stops rewarding productivity and starts punishing the wrong people.

In this episode of Repair Shop Reckoning, Kevin explains why he made the decision to move his entire shop off flat rate and onto hourly and salary pay.

This isn’t a rant about pay plans. It’s a real conversation about what happens when the system around your shop creates friction you can’t control.

Kevin breaks down what changed, how the team approached the transition, and why leadership, training, and procedures matter more than the pay plan itself.

Because the real issue isn’t flat rate.

In this episode
• Why flat rate worked for years and why it’s getting harder to make fair
• How training younger technicians exposes the flaw in the flat rate system
• The real impact of parts delays and fleet approval layers
• Why rushing for hours hurts quality and culture
• The system Kevin put in place to protect production, training, and his team

If you run a shop, manage a team, or want to understand why technicians are leaving the industry, this is a conversation you need to hear.

Because at the end of the day, it’s not about pay plans. It’s about running a shop that actually works.

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