🇦🇺Australia

Labour Cost Overruns

2 verified sources

Definition

Shops experience cost overruns when actual repair times exceed flat-rate estimates, particularly in paint and complex mechanical work, due to stagnant industry rates vs rising costs.

Key Findings

  • Financial Impact: AUD 5,000-15,000 per technician/year; 20-30% overrun on labour costs
  • Frequency: Ongoing per job exceeding estimate
  • Root Cause: Stagnant flat-rate standards over 14+ years while actual costs increase; lack of real-world validation

Why This Matters

The Pitch: Vehicle repair businesses in Australia 🇦🇺 waste AUD 5,000-15,000 annually per technician on labour overruns. Automation of precise time estimation recovers these costs.

Affected Stakeholders

Business Owners, Technicians, Accounts

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Underquoting Labour Times

AUD 10-20% labour revenue loss per job; typical overrun 0.5-1 hour per repair at AUD 150/hour

Inaccurate Cost Calculation

AUD 2,000-8,000 per shop/year in lost margins; 1-2 hours misestimation per quote at scale

Estimate Disputes and Churn

5-10% annual revenue churn; AUD 1,000-5,000 per lost client

Rework Labour and Parts Waste

10-20 hours/month per technician at AUD 80-120/hour (AUD 10,000+ annual loss per bay)

Comeback-Driven Customer Loss

2-5% annual revenue churn (AUD 20,000+ for AUD 500k shop)

Delayed Payments from BNPL Financing

AUD 10,000-50,000 tied up per month in AR for average workshop (based on typical repair invoice of AUD 500-2,000 spread over 3-6 months)

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