Flat rate. Techs hate it, Techs love it. It can be both loved and hated.
First off, nobody that I know of, at kubota dealers, is required to use flat rate, except in the case of warranty repairs. That is the only time it's required with Kubota (and a lot of other manufacturers as well-but not all). Some DEALERS will require techs to work flat-rate only. They typically have the lowest price, but the highest turnover rate for techs. If I know that a job pays 0.75 hours and I know for a fact that no matter how many times I do it, I'm never gonna do it in under 1.0 hours, then I'm not too excited about losing money. It's like going to work and KNOWING that you are not going to be able to take home as much as you can. BUT sometimes it works pretty good too. Basic repairs, maintenance items can be done faster than flat rate (usually) and repetitively, they can add up to a decent paycheck. But the customer, if book time is 0.5 hours for an oil change and the customer knows the tech did it in 0.1 hours, the customer is automatically going to want to be charged for 0.1 hours. I've been down this road too (with a Kawasucky motorcycle engine repair) and the customer actually took us to small claims over it-and lost his case. Judge told him the same thing that we told him, just because book time is 5.0 hours, that doesn't mean we have to charge 5.0 hours-there is no law requiring it, and if there ever was, a lot of repair facilities would either shut down or find ways to make money elsewhere (fees, etc to recover the losses).
People on the outside looking in, have no idea what the ACTUAL time to do a job is. No idea whatsoever. Think of it as building a peanut butter and jelly sandwich. You have to go get the bread, take the tie off, take the slices out of the bag, put down a paper towel or plate (whatever you use...I use the work bench pretty often), go get the peanut butter from where it's kept, get the jelly outta the fridge, go get a butter knife, remove the lid from peanut butter, spread the peanut butter on said slice of bread, then repeat with the jelly. Then put the jelly back in the fridge, put the lid back on the peanut butter, put it back in the pantry, put the tie back on the bread loaf, put the loaf back up where it goes, wash your hands, maybe twiced if you're like my wife (or in her case 3 times), wash the knife off, put the knife back in the drawer, then maybe you can go sit down somewhere quiet and eat it. Example: Let's say I'm doing an engine R&R, since I did one today. Book time is 5.5. That's the time that they (manufacturer) figures it'll take to DO THE JOB, not including writing a parts list, pulling parts (if I have to do that-and I usually do), finding the key for the equipment, finding the equipment outside in the stack of 47 other machines that may or may not look identical, verify the VIN to the RO, bring the equipment into the shop (in this case, dead equipment), line it up and get it on the rack, THEN I can R&R the engine. Once R&R'd, have to verify it's working properly, verify the equipment isn't going to fall apart on a test drive (trust me, this IS a concern on some stuff...including tractors!), once that's done and IF it all goes as planned (and it rarely does, you know bolts often break, strip, are already broken or stripped, etc), and the test drive is ok, then I have to run it to the detail bay, and while they're working their magic, I'm finishing the paperwork-which can take a while depending on the job. Verify parts, verify service labor is per estimate (sometimes it is, sometimes it ain't), make sure that everything is good. Then, HOPEFULLY the detail shop doesn't find a loose bolt or nut, or another unrelated problem--because if they do, that's usually more time, and oftentimes time for that particular job that doesn't get accounted for since Mr. Customer isn't expecting anything over X dollar amount, since he's already been quoted the estimated cost to do said job.
and that's just doing a job. Remember there's a whole lot more to a tech's job than fixing stuff. Working with manufacturers, helping each other (pulling dead equipment into/out of the shop....), TRAINING (that was a sore subject with the dealer I worked at), etc. Training was usually once a year, but they sent us halfway across the country for 3 days to 3 weeks and we didn't have a choice. My dad had surgery 2 days before and was doign well, and then had some complications....boss said I either GO, or he'd terminate my employment. It was mandatory. Needless to say, I didn't go-family comes first. Wasn't long after, I terminated myself from that job. Sometimes it was 2, 3, 5 times a year just depends on what "they" wanted us to train on. The significance of training? I had to go to Dallas since it was the closest training center, but had to go to KC a few times as well (I'm about halfway between the two). Well, you train in class for 7 or 8 hours. Then what? You ain't going home. "Most" of the guys went to the strip clubs and bars and such. I don't partake in either, so it was pretty uneventful. Company pays X amount for gas and motel. YOu go over that, it's on you (the tech) so you had to budget for it, and it didn't include going anywhere after "school" in most cases. Well meals cost a lot more in Dallas than they do here, so if I'm gone for 5 days I had enough for usually 3 maybe 4 if I ate rice and beans. Most times I was forced to drive my own vehicle. LOL, yeah I drove a 2004 Mustang to Dallas....several times...had 400,000 miles on it when I was done with it, and it was NOT that nice of a car (you get the idea). Breakdown? On me. Why should the company pay for MY car breaking down? BUT--towing it to a repair facility and paying them to fix whatever the problem was, was on me as well, but if I broke down locally (near home, say 30 miles or so radius), I can have it towed home, fix it myself for pennies in comparison. So yes, training was a pain in the posterior. Where I'm at now, MOST of the training is online, and it is VERY good by comparison. And I get paid to do it (commission pay) even if I do it at home on my time I still get paid for it. Part of that is the difference in the dealers. Part of it is the differences in manufacturer policy. If you're working commission pay (like I was at the kubota shop), training costs you a lot of money. I figured it up, if I billed 50 hours a week, I made about $1000 in commission. If I went to training for a week, I lost $1000, plus a couple of meals and possibly fuel costs. Plus being away from home (I have a second job from home so that is also a loss) and I own a business. ILT cost me (and the other tech) a LOT of money over the 2 1/2 years I was at that dealer.
It's a whole lot more complicated than people think it is and isn't going to get any less complicated anytime soon. Kubota once preached to all techs that we had to use a 7 step process and document all 7 steps, and had to do all this in flat rate time. It was impossible, and a bunch of us pushed back and I "think" (Dan and others can verify) that they've cut it back to 3 or 4 steps now. It was the dumbest thing that they'd come up with. I know why they did it, but I also know it wasted a lot of unnecessary time for which the customer ended up paying for in one way or another. THAT was the part that I did not agree with. If book time was 0.5 hour and we were doing the actual job (tools out, to tools up time) in 0.8 hour, we were able to make that up in some cases by charging Kubota for, say, cleaning-or whatever. Now they (and everyone else) wants pics of the equipment--which takes time as well, to take the pics, upload them (this part takes a while in some cases) and that isn't paid for. Thats why I have to text them to the service manager, who does that for us, and "most" of the time he does it correctly. He gets overwhelmed too, ain't none of us perfect humans-if we were, we'd certainly be in a different line of work.
Around here, independent shops also use flat rate so you're not avoiding it there either. Some do, some dont. Customer-pay jobs, if you ask a shop how much a job is going to cost and they quote you "book time", they may lose money, or you may lose money. Depends on the type of job and the type equipment. If it's an a/c job, they're very likely going to NOT quote flat rate because they don't know how much time it's gonna take until they start doing it. And since they're not bound to flat rate by anyone, they're not going to use it. But they might use it on a simple repetitive job, say an oil change or something.