How to Evaluate Labor Rate

Are you looking for the cheapest forklift labor rate out there? Are you shopping for the lowest number? Are you looking at other metrics when you evaluate forklift repair? Let’s explore the right way to evaluate labor rate. 

The labor rate is the hourly charge to maintain and repair a forklift. As you might expect, rates vary between repair companies. What is often misunderstood is how to evaluate a rate to determine which is the best value. 

First of all, what is included? At Allied Toyota Lift, we include:

  • Warranty on repairs – Ask your non-Toyota Dealer Repair technician what their warranty is on the quoted repair before awarding the business. It should be important to your evaluation. Note that the Toyota Warranty covers both Parts and Labor for 2 years, when installed by an Allied Toyota Lift Technician, which is unmatched in the industry.
  • Onsite repair – We come to you. You do not have to bring your unit to the dealership as you would your car.
  • Professional van – Our vehicles are safe, fully marked, and well maintained.
  • Van parts inventory – Each van is stocked with thousands of dollars’ worth of parts. We invest in this parts inventory in order to maximize the chances that our tech can fix your unit right then. In fact, we measure First Time Fix Rate for every road technician. Last month, we completed 84% of our service calls
    on the first day!
  • Offsite parts inventory – For the less common instance where your repair parts are not on the technician’s van, we maintain a $1 million parts central inventory. And if our warehouse does not have it, 99% of parts can be obtained with a 1-day turnaround from Toyota… even for non-Toyota units. 
  • Trained technician – Our technicians are certified by Toyota after hundreds of hours of specialized training. We have three trainers on staff who ensure that every technician is qualified to maintain and repair your equipment.
  • Professional technician – Techs wear stylish Toyota uniforms and are trained to operate safely
  • Experienced technicians – our technicians average over 10 years of forklift repair experience. Our trainers and parts/service managers average over 25 years’ experience. 
  • Toyota Advantage – All our technicians have access to Toyota diagnostic support and the Toyota hotline. Additionally, every technician works side-by-side with our Field Service Coordinator several times each year to ensure that each technician’s procedures are up to Toyota standards 
  • Paperless service system – Our technicians use internet connected tablets to access all customer information including forklift history and parts lists. This speeds up the billing process and makes same day parts ordering a breeze.

 

We often hear from folks that wished they hadn’t chosen the cheaper repair guys. Here’s why…

Cheaper labor rates might mean:

  • Technicians with limited capabilities and inadequate parts 
  • Unsafe maintenance and repair procedures
  • Slow, expensive, incorrect diagnoses
  • High equipment downtime due to repairs taking several days
  • Lost time and more expense due to poor quality repairs performed several times
  • Costly repairs due to inefficiency of a poorly trained technician

Let’s look at an example of two labor rates. 

                            Cheaper Guys:                         Allied Toyota Lift:

Diagnosis…               1.5 hours                                            1.0 hour 

Parts acquisition…   2.0 hours                              0.5 hours (parts on van)

Perform repair         1.5 hours                                              1.0 hour 

_________________________________________________________

                                   5.0 hours                                       2.5 hours

Warranty                     Any?                               Two Years on Parts & Labor

 

So, even though the quoted labor rate might be cheaper with another company, Allied Toyota Lift will do the repair work correctly the first time and provide a 2-year warranty, which will guarantee your company will save money and reduce downtime. That is the best deal.

Need help evaluating what labor rates work for you? Contact Allied Toyota Lift today. We’re happy to talk you through it. 

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