Found out from the actual paper quote, the actual labor rate is $200/hour. Also, each individual task is 1hr min. So replacing the drive belt is 1 hour, and drain and fill on the radiator is 1 hr. While both of those combined might take a skilled person 30 minutes total, it’s $400 in labor for 2 hours.
How does this compare to other shops?
The hourly rate seems high but 1 hour minimum doesn't seem odd.
I can only use my experience to judge that and the time it takes to take fractions of an hour usually end up costing you more than it's worth. So you kind of have to weigh if it's bringing enough value to customers to justify the effort.
If you slice it too fine you have to add 10 minutes each time for someone to call in the part order or keep stock, to jockey vehicles in and out, do the paperwork and call customers, for some shop kid to empty the waste tanks each night and all of it. Most of that is inclusive with the overhead, though what you can include as billable vs G&A may vary to the accountant.
It might just be easier to tack on some standard pad. Maybe 50% over actual on every job is excessive but adding 30 minutes to every job for misc might not be. I dunno, just saying that might justify a 1 hour minimum anyway.
I'd also think one thing lost is all this automated quoting is the ability for someone to know where to add an overhead and where you could combine tasks once. The software should be able to say that you only have to get a porter (or someone) to get the truck once so no need to tack that on with each thing you do. But a person doing it would immediately recognize a ridiculous quote.
But as long as people keep paying why shouldn't the shops charge it? It's unethical but if supply was sufficient that people could shop around the demand would drive the market down. But people would rather spend their Saturdays not changing oil so things are what they are. When a shop gets noticed for being priced way under they get swamped and way over booked so you have to wait a month to get an alignment.