INDUSTRY PRICE COMPARISON
Three typical ways to get your truck serviced
Example below based on a basic oil change service - 2015 Western Star 4900SA W/DD16 Engine before tax
basic oil change
Take truck to dealership
$450
basic oil change
quoted from Edmonton dealership
+
$64
wages only
oil change not included
*see direct cost calculation below
GRAND TOTAL
$514
basic oil change
*does not factor indirect costs below
DIRECT COSTS
SCENARIO BASED ON EMPLOYEE TAKING TRUCK TO DEALERSHIP
AVG employee wage $24/h
15 min (drive to lube spot)
60 min (service time)
+15 min (drive back to workplace)
= 90 min ($36 in wages)
Plus 50% more for government and insurance costs to have employee.
$36 in wages + 50% = $54 in actual wages
$54 (wages)
+$10 (fuel)
=$64 (just to get service)
$64
service not included
INDIRECT COSTS
- Lost productivity. Amount lost depends on scope of work
- Added wear and tear from travel
- Longer work day
PROS
- Level of experience
- History records kept for your truck
- What you are accustomed to doing
CONS
- Higher prices and hidden costs
- Unnecessary downtime for services
- Added liability while driving
- Lost productivity on your truck/asset
- Extra costs of going somewhere
1. wages
2. fuel
3. wear and tear
- Extra work at the end of your day
basic oil change
Hire in-house mechanic
$189
42L of 15W40 Oil
based on average cost $4.50/L
+
$60
oil filter
average price
+
$75
wages only
parts not included
*see direct cost calculation below
GRAND TOTAL
$324
basic oil change
*does not factor indirect costs below
DIRECT COSTS
SCENARIO BASED ON MECHANIC DOING SERVICE IN HOUSE
AVG mechanic wage $40/h
10 min (set-up time)
60 min (service time)
+ 5 min (clean up or break)
= 75 min ($50 in wages)
Plus 50% more for government and insurance costs to have employee.
$50 in wages + 50% = $75 in actual wages
$75
parts not included
INDIRECT COSTS
- Keeping mechanic busy all the time between service requirements
- Insurances required for employee
- Remittance costs on wages
- Administration and training
PROS
- Level of experience
- In-house record keeping
- Use employee for other tasks
- Good oil and filter prices
CONS
- Keeping mechanic busy between services while still paying hourly wage
- Added liability incurred in-house
1. Wages
2. Insurance
3. WCB
- Wages wasted on:
1. sourcing and picking up filters, oil etc.
2. keeping used materials disposal area organised and clean. Taking pail lids apart etc.
3. scheduling pick up of all used products.
basic oil change
NQO Mobile service
$299
everything included
+
$0
nothing to add
GRAND TOTAL
$299
basic oil change
everything included
DIRECT COSTS
NONE
everything included
INDIRECT COSTS
NONE
everything included
PROS
- Level of experience
- History records kept for your truck
- No lost productivity on your truck
- No liability for your company
- No extra costs in wages
- No extra costs of going somewhere
1. wages
2. fuel
3. wear and tear
- No extra work at the end of your day
CONS
- Not what you are accustomed to
- Initial set-up required.
(fleet list and VIN numbers)