Those rates are very low, at least by So Cal standards. Most shops, and that would include the likes of Best Buy and Circuit City charge a minimum of $50/hr. Most reputable shops will charge a minimum of $65/hr, custom labor typically being more than that. The average rate for an installer in So Cal is probably around $15-$20/hr, and i have seen even Best Buy installers make closer to $30/hr based on experience.
A $15/hr rate seems too low to me, but depending on where you are it may be fair. The reality of the industry though is that of quickly eroding margins on products, and a general shrinking of reputable shops. This means that there is a greater focus on labor than product, and the labor is an increasing portion of the bottom line. I can tell you that in So Cal, $7.50/hr wouldn't hire you a 16 year old kid with no experience, and even "trainees" get paid more than that.
This along with the fact that very few people can do custom, and fewer than that can do good or show quality custom work translate to higher labor rates.
There are a number of shops in our area which charge upwards of $100/hr in labor, yet run thriving business, based on location and quality of work.
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Plum Crazy previously said:
Well I see what you are saying no doubt, What this store does is he pays the guy 7.50 to install and takes 7.50 for the store they have been in business since 1985, and I have been using them since 1986 they do excellent work like I said in the past we made it to world finals and was points champion for our region. I am sure the cost of living is more in NM which would increase the rate for sure.
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