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)

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