Does your WoF price cover all your expenses?

The price you set for a Warrant of Fitness is of course your responsibility, however, MTA considers that for you to make a return you need to consider all those cost components you need to cover.

In a recent MTA Repairer Salary and Wages Survey the average WoF rate was $45.10 (GST incl) nationally. Interestingly, members in the bottom of the South Island had the highest average WoF charge of $50.02. The national average hourly chargeout rate from the survey was $70.70 (GST incl).

The WoF inspection is a labour only sale and so time taken with inspections is reducing the time you have available to offer more lucrative services generating both labour and parts sales. This should be considered in both your WoF chargeout and the percentage of your business you set aside for undertaking inspections.

When considering cost you also need to consider the time needed to manage the NZ Transport Agency (NZTA) WoF inspection performance review system (PRS) in your business. If you do not get it right and are found undertaking less than satisfactory inspections, action by NZTA, your customer and in some cases the media, can be very significant for your business and potentially the staff you employ. Those businesses that have been caught can attest to this. It is very important to put aside time to manage your WoF process and this cost needs to be recovered within your WoF fee.

MTA Members have advised that it takes on average about ¾ of an hour total time to complete a WoF inspection. This includes time to complete the jobsheet and checksheet, inspect the vehicle, enter the inspection online, discuss the inspection with your customer and complete management tasks and paperwork filing requirements.

Summary of some cost areas:

  • Staff costs - proportion of: 
    • wages,
    • holidays,
    • sick pay and
    • Kiwisaver
  • Management and Training
    • PRS self review,
    • NZTA review and
    • staff training,
  • Premises - proportion of:
    • rents,
    • rates,
    • repairs and maintenance,
    • cleaning and insurances
  • Utility and Communication Cost - proportion of
    • electricity,
    • gas,
    • telephone and broadband.
  • Fees
    • NZTA Agency fee and
    • proportion of business fees (ACC, Accountancy etc)
  • Stationery
    • WoF labels,
    • checksheets,
    • jobsheets, and
    • reminder cards.
  • Equipment
    • Maintenance and depreciation on a computer and your inspection equipment 

The Warrant of Fitness inspection should be a profitable part of your business.