STANDARDIZED CHARGES FOR REPAIRS.
Page 23
If you've noticed an error in this article please click here to report it so we can fix it.
The Ford Motor Company Have Standardized Their Charges—Can the Principle be Extended With Advantage ?
By"
Vint."
HE decision recently taken by the Ford Motor Company to standardize the charges made by their agents (or, as the Ford concern prefers to call them, " d.ealers "), has stimulated interest in this question of fixed prices for motor vehicle repairs. For many years it has been a dream of manufacturers and repairers that, one of these days, it might conceivably be possible to arrange a price for every job, so that every owner of a car could be told at once exactly what any work which he required to be done would cost. But, for just as many years it has been recognized that there is such diversity in types of vehicles, and such difference in the treatment meted out to them by their owners, that, if ever the dream came true, it could have only a limited application.
The Ford is altogether an exceptional case. It should be borne in mind that any system of standardized prices for repairs can only 'be an approximation, based on the average cost of work. In practice, some ,jobs are bound to cost more than the list price to carry out, and some less. The greater-the number of jobs of each kind that have been done in the past and have afforded data, for the average price. schedule, the more nearly accurate will he the standardized charge for each job. And „the greater the number of precisely similar jobs done after the standardizing; of each price, the fairer will' be the subsequent
tion of the charge. This is a rule which is based on thelaw of averages, and corresponds to the principles governinginsurance premiums and bookmaking ; standardized charges for repairs, insurance, and betting, being simply three varieties of gambling, and the more extensive the "book," the greater the certainty with which 'definite figures can be employed to express what, taking each risk separately, is an indefinite liability. Because there is such a multitude of Fords in existence, and because in the main the design of that make of vehicle has been altered but slightly for several years, it is easier to fix the charges for repairing them than for any other make. Nevertheless, it is important not, to overlook the fact that, even with the Ford, prices for repairs can only be approximate, and can only be fair on the average.
Taking the Individual Case.
Now and then the cost of doing an item of work will be exactly as provided for in the schedule ;
in the majority of instances, it will be either above or below the schedule figure. Put another way, this means -that the price as applied to individual jobs will most frequently be unfair against the repairer or the owner of the vehicle, although in the long run, it will be fair both to the one and to the other. This, be it noted, is a different thing from saying that it will be fair to any one customer even in the long run—for it is obvious that one owner may not have :a job repeated twice, so that any advantage gained by him will be at the expense of another.
The point then arises, whether a fixed rate of charging for repair work, supposing. it be possible to adopt one, is beneficial to commercial vehicle owners and to repairers. The answer tothisis both Yes and No. Everything depends on circumstances. It is undoubtedly an advantage to both parties to know beforehand exactly what will have, to be paid for any job, and it is probable that even those owners who
would, under a system of charges based on time, have had to •pay less, would rather pay more for the benefit of havieg in front of them before giving instructions for repairs to be executed, the exact KUM of money which they. must eventually pay. To the repairer, the fixed price plan offers the advantage.s of enabling him to have every amount ready for every customer on completion of the work (thus insuring prompt payment), and of preventing all disputes about the amounts charged.
On the "no" side, it cannot be disputed that where a rppair works has in operation a proper system of costing, so that the actual expense ,of each job is definitely known on its completion, and where the charges made are in 'exact proportion to the time spent, the result is far more just to all concerned. The owner whose vehicle has been carefully looked after then scores, over the one who runs his for months on end without cleaning ita or otherwise treating it as a valuable piece of mechanism should be treated. A proper system of,costing does not add anything to "overhead," because an accurate check on mechanics' time and so or would/be kept by all sensible repairing firms, even if standardized charges were universally in force. Moreover, knee a flat-rate scheme must be such as to permit all repairers to make a living k profit, in all circumstances., it follows that it must provide for all contingencies which may never arise.
Standardization Not Yet Possible.
I am confident that, on the whole, repairers will agree with me when I say that they devoutly wish it were possible at this stage to standardize charges for every kind of work to every type and class of vehicle ; but it is a long way off being possible at the moment, or for some tune to -come. The Ford is unique, and is probably the only make of motor vehicle in this country to which the system can be practically applied, solely because it is itself so thoroughly standardized a type, and because the Ford Motor Company's dealers are so completelyunder that concern's control. For the rest, absolute standardization is impracticable and undesirable at present. Users are, better off under the recognized time system, for they, are -only charged for what they have done to their ears, and if no special difficulties present themselves during the execution of the work, they do not have to pay for any proportion of the difficulties oome across while the work of other users is being carried out. Standardized prices, when they are employed, should be elastic—allowance being made above or below the averag'eOgures, according to the peculiarities of a vehicle's design and the manner in which it hae been eared for. Thip plan is now employed by a good many repairer g as the result of an interesting plebiscite which was taken of repairers recently. All members of the industry whowere qualified by reason of their experience and of their having kept a careful cheek on costs were asked by a trade journal to send in estimates for doing epecified repairs. The many estimates which were received were then totalled and the average price for each item, together with the highest and lowest figures submitted, was published. A useful and flexible table of charges was in this way secured, but it was not-pretended that the prices could be regarded as in any way definitely standardized.