Flat rate vs hourly, which actually makes you more money in the long run?

I was at a shop in Phoenix last summer and a master tech named Dave swore flat rate is the only way to go because you can hustle and beat the book. But then I talked to another guy who said he burned out after 5 years and switched to hourly at a dealership, making more consistent pay without the stress. Personally, I've been running my own roofing company by the job and I see both sides, but for auto work it seems like one bad estimate can mess up your whole week. Which do you guys prefer and why?

2 comments

2 Comments

the_emma19d ago

Feel you on this one. I've been doing heavy equipment repair for 12 years and switched from flat rate back to hourly about 3 years ago. The stress of chasing book time was literally ruining my weekends and giving me anxiety every Sunday night. Flat rate CAN make you more money if you're fast and lucky, but one busted bolt, one rusted frame, one thing that should take 2 hours taking 6, and suddenly you're working for free that day. I was making decent money but my body and mind were breaking down from the constant pressure. Hourly is way more stable, I sleep better, and honestly my yearly pay ended up only about 5% less than my best flat rate years but with way less headache.

phoenix7919d ago

Man, that "working for free" part hit me hard. I did flat rate for about 4 years and had the exact same thing happen: one job that should have been a quick brake job turned into a whole day of fighting rusted lines and I made maybe $12 an hour after the math. The anxiety was real, I remember waking up on Mondays already dreading the unknown. Hourly took that weight off my shoulders completely, and even though my best checks aren't as high, I'm not living paycheck to paycheck wondering if I'll get screwed by a bad car. Peace of mind is worth more than a few extra bucks to me now.