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Effective Labor Rate Effective Labor Rate â This basically is your total labor sales, or individual techâs labor sales, divided by the billed hours by the team or individual tech. For example, your shop labor rate is $80, Technician A bills 36 hours and generates $2,380 in labor sales. Take the $2,380 in labor sales, then divide by the 36 hours and you get $66.11 as an effective labor rate. You col-lected 82 percent of your door rate. At 100 percent of your door rate, the total tech labor sales should have been $2,880. I know some of you are saying that you have heard a different definition for effec-tive labor rate. That might be true, but we
According to the research done by Triton Polling & Research in the Van Nuys, CA area, the average labor rate is $74.03. Thirty body shops participated in this survey, and helped back up this research. The minimum labor rate is $45.00 and the maximum rate is $125.00. Although labor rates vary in the US, this information should be almost the same in other rural areas. This survey was done for the Collision Repair industry so that there would be an understanding on how much the labor rate is and how much it should be.