Small Engines (Lawn Mowers, etc.): Pricing, shop charges

Question
QUESTION: Howard, this is a different type of question. Just passed my OPE certification and have earned a B&S as well as a Tecumseh cert..  Goal is to set up a small repair shop in this rural area where there is quite a need.  Can you give me an idea on pricing?  Specifically labor, mark up on parts, and blade sharpening, etc.  I called a couple of shops in the phone book but they weren't very helpful. Any suggestions would be appreciated, and any general suggestions on setting up the shop/business would be welcome as well.
Thanks in advance
Mark

ANSWER: Hello Mark,

Okay, so you are interested in setting up a small engine shop out in the boondocks.  I can give you the general cost of labour here in Ontario [Canada] which might be different than where you are thinking of locating.  

Generally to look at a machine the minimum shop charge is around $30.

If the customer agrees to get the work done that you troubleshoot then the $30 is not charged, but included in the final price.

Other pricing depends upon parts, availability, and so forth.  Once you determine that you can rebuild a carburetor in 1.5 hours, then you have to figure out how much you wish to charge for 1.5 hours labour, and how much are the carburetor rebuild parts going to cost.  Depending on whether you are doing a simple rebuild [not a total overhaul] I've found the parts to be quite inexpensive, but sometimes hard to find.

I last got a blade sharpened around 12 years ago, and the charge was only $10.  Usually blade sharpening is done as an aside to get the customer's to know you in order to land the bigger jobs.

You're asking a general question and it's hard to answer because everything depends on the details.

Howard

---------- FOLLOW-UP ----------

QUESTION: Thanks Howard, great answer. What would be a specific charge in your area for 1.5 hours of labor. Regarding the $30...Someone comes in with "It want start" and the problem turned out to be just a bad plug which took 2minutes to fix, then you would charge the $30?

Answer
Hi Mark,

Generally speaking, 1.5 hours of labour - for the rebuilding of a carburetor would run you around $85-$90.  

Re: the $30 minimum charge.  Someone calls you with the complaint that their mower won't start.  I would say that my minimum charge is $30.

The customer has to pay for your knowledge of small engines.  It might only take you two minutes to replace the spark plug, but it could have taken you fifteen minutes to look the machine over,troubleshoot where the problem existed, and then get a hold of the correct spark, specifications, etc. etc.  

With more experience, the diagnostics should get easier. You need to develop a shop charge that works for you. As you improve, you might want to think about increasing your rate.

Cheers,

Howard