Indy Mechanics Part Pricing

[Snagglefoot]

I was chatting with a local Indy mechanic and we were discussing the price of parts. I touched on the pricing available at places like Rock Auto vs local chains. We also talked about his suppliers. I’d like to hear what others find but what I see is that he has a fair competitive hourly rate, but he says he needs to mark up his parts by 30% to make his business worthwhile.

He doesn’t like customers coming in with their own parts. Also, he mentioned when he starts a job he get’s it done non-stop. No waiting on parts. He’s hooked up with one of those places that bring part quickly with a small truck and if it’s wrong they race over and make it right.

Overall I thought that was fair. What do others see regarding pricing of parts? Does your mechanic let you bring in parts with no markup for him? Any other thoughts?

 

[LazyDog]

Depends on how friendly your mechanic is!

I have older Volvo's and the local places seldom carry any parts for them and it is much easier to bring my own parts, plus you get to pick the brand.

For most customers, they probably do not care at all. Very seldom do they know how the car works.

 

[2010Civic]

I am my own mechanic so yes he let's me bring in my own parts. Haha

 

[Duffyjr]

Don't they get parts cheaper than what you and I would pay, so I don't think the full mark up gets passed on. I know I've looked up the same part at Napa I know he used and it wasn't any where near 30%.

 

[Whimsey]

My Indy mechanic adds probably 50%+++ to his cost of parts. This is to help cover his labor if he has to replace the part within his 12mo/12,000mi warranty since many auto store parts seem to be of poorer quality and don't last or work initially. He has no problem with me bringing in my own parts because I understand if they fail I pay again for the labor. When I do bring in parts they are OEM or other quality parts. So far I've not had to pay for replacements. He's happy and I'm happy, if I bring in a dud part it's at my expense not his. He's been real honest and doesn't nickle and dime me so I let him supply parts for mundane repairs such as brake pads and rotors.

Whimsey

 

[bdcardinal]

Generally we give most shops a 20-25% discount off of MSRP based on the amount they buy from us. There are some parts where we can't give that much of a discount, some taillamps that list for $45 our cost from Ford is $38 so we split the difference with the shop. They are free to mark up whatever they want.

Now if we buy something from OReilly's or AutoZone for a used car or a competitive make car, we pay the same price that they would charge anyone else that walks in off the street, but they put an artificial MSRP on the invoice to make it seem like we are getting a discount. Like if we have to get Mobil 1 or Castrol Edge, they charge us $9.49qt.

 

[The Critic]

Most shop consultants have advised independent shops to implement matrix pricing on parts. The parts markup is heavily dependent on the price of the part - less expensive parts are typically sold at 1.5-3x (150-300%) of their cost, while larger parts such as engines, trans, etc are sold for slightly over cost.

 

[CT8]

When the parts fail who pays for the warranty ?

 

[Duffyjr]

I guess I've been lucky, I've never had to take any vehicle back to a mech due the part failing soon after it was fixed. So if I understand this right if my mech puts in a starter that has a 90 day warranty from the auto parts store and it fails within that 90 days I have to pay the labor to have the new part put in again?

On to something bigger!
I just went thru having a new engine fail under warranty in the wife's caddy and he replaced the engine and it didn't cost us a dime, he said he was reimbursed for the labor from the company that supplied the engine to CarQuest.

 

[Hall]

Originally Posted By: Duffyjr
So if I understand this right if my mech puts in a starter that has a 90 say warranty from the auto parts store and it fails within that 90 days I have to pay the labor to have the new part put in again?


It may depend on the amount of labor involved, who supplied the part, etc, etc. If you supply the part and it fails, you're definitely paying again for the labor. If the shop supplies the part, they may or may not charge for labor a 2nd time. After all, unless they installed it wrong (which you'll probably never be able to prove), it's not their fault the part failed. If it's an easy swap, they may waive the labor as a "gesture".

 

[IndyIan]

My guys seem to use NAPA and charge the online/reserve price. Which is a bit of a discount vs. the walk in price, but maybe no one pays the walk in price?
Probably they get a bit of an additional deal on parts, but whatever, my main concern is that they do the job right the first time.

 

[camrydriver111]

The mechanics I've been to let me bring in my own parts. They are usually one man operations.

Some mechanics are better at souring good parts and selling them for a fair price than others. My last brake job was done with OEM manufacturer parts, and it cost the same as another brake job I had where the mechanic used the cheapest generic parts store brands.

If the mechanic can source good quality parts at a reasonable price I let them and don't mind paying the markup.

Sometimes the prices are not reasonable. I've been quoted $1200 for control arms I can buy for $400. I think the supplier they were using was overpricing the parts.

 

[14Accent]

Originally Posted By: The Critic
Most shop consultants have advised independent shops to implement matrix pricing on parts. The parts markup is heavily dependent on the price of the part - less expensive parts are typically sold at 1.5-3x (150-300%) of their cost, while larger parts such as engines, trans, etc are sold for slightly over cost.


This is how it works in the shop I work in. Somewhere like cost x 3.125 for the 0-10 dollar range, dropping to something like cost x 1.5 for the expensive stuff.

We'll let anyone bring in their own parts, however they come with no warranty and we raise the labor rate $20/hour on customer supplied parts.

 

[BMWTurboDzl]

Not sure how I feel about that. In my world BMW provides a two-year warranty on their parts. The Indy pays the wholesale price for parts as well so I would expect some mark up, but I would be annoyed if the shop was charging me more than the retail price.


Ex: Years ago I saved $250 on an ATF pan drop because I sourced my own ZF parts/fluid.