From Chapter Twelve:

Why Dealership Service Departments are So Expensive
. . . Yet Surprisingly Fail to Make Big Profits

“The company in which you improve most will be the least expensive to you.”
 
—George Washington
First U.S. President (1732–1799)
 
"...Most technicians work on a flat-rate system. This means they are assigned jobs carrying a predetermined time allowance to complete. The time allowances are all published in a book. The referenced time allowance dictates both what technicians are paid and what customers are charged, regardless of the actual time it takes a tech to complete the work. Some job times are more liberal than others. Techs learn which jobs pay well, but can be completed in very little time.
 
"Techs learning the best paying jobs weigh, measure, and monitor the types of work the service manager or job dispatcher gives them in relation to the other techs in the shop. For example, customer pay work pays by the book. Warranty work also pays by the book. However, the customer books such as Chilton’s or Mitchell’s pay 25% more time for the same job than the manufacturer’s warranty book. So it stands to reason, technicians prefer customer cash pay work over warranty work.
 
"Managers typically use cash work favors as a means to placate, appease, or punish technicians. Likewise, techs embroiled for most of a day or week on a tough warranty job may be ingratiated with some cash “gravy” work in order to make up for the torture and loss of income..."