Out of the Crisis.Org

[Louis Altazan]

I have always felt, socialism is one of those concepts that promises much, but is devastating in practice. The concept sounds plausible enough. Those who have more compensate with those who have less. Sort of an attempt to make everything average. Much like the flat-rate billing system. A book states an average time. Some jobs can be done much quicker than stated, these are the producers. These [wealthy] jobs basically subsidize the [downtrodden] jobs that take longer than stated. More or less like socialized pricing.

My observation of socialism is, those that produce eventually figure out they are carrying a disproportionate load. The list of those who merely consume also tends to grow. The system tends to reward those who do not produce, while punishing those that do. Often it is left with an abundance of non-producers [non-profitable jobs] and no producers [profitable jobs]. I think much the same occurs with flat-rate pricing.

For example, I have long felt a job should be billed in accordance with the time actually spent doing the job. This means if I can do a job quicker than flat rate, my price will be lower. If the job takes longer than the book, my price is accordingly higher. Competing with the “guys down the street,” I will tend to attract [lower price] those jobs at which I am most efficient. My competition will tend to attract [lower price] those jobs at which they loose money.

Essentially I am paid for 100% of my time and still remain competitive, even with a higher rate per hour. I refer to this as capitalistic pricing. With this system, each person pays for what they actually get. For instance, a better cared-for vehicle cost less to repair than a neglected vehicle. Maybe not politically popular, but a concept I feel is worth consideration.

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Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA

[Aaron Janssen]

I like this idea, but have a few questions. First, how do you do an estimate? If the labour guide says 2 hours, do you do an estimate based on that? Then say that due to rust and broken bolts etc. the job takes 4 hours with a torch, drill and tap set, I realize that you would increase your bill accordingly, but how do you keep clients from freaking out over the situation?

Also there's the shoppers. The ones that phone around asking 'How much to replace the dohickey in my somthingorather'. Would you give them the flat rate value and try to make them understand that you might be able to do it cheaper, or that it may potentially cost more based on the condition of the vehicle?

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Aaron Janssen
Victoria St. Auto Tune
Prince George, BC, Canada

[Louis Altazan]

Hi Aaron,