No shocker, but a rip-off story...

[Wolf359]

Originally Posted by ragtoplvr
Auto parts stores deliver the same day. They try to have a cute pleasant happy delivery girl.Getting much more rare these days. This is ot free


It just depends who applies for the job. Basically anyone with a license. Guy applied for one of my units doing that. They just paid minimum wage. With Uber/Lyft, it must be harder finding people as the only requirement for the job is a driver's license.

 

[SwampSurvivor]

At least a parts runner makes minimum wage and doesn't put all of the miles on their personal vehicles, whereas an uber/lyft driver gets paid less than that and still puts mileage on their own vehicle.

 

[Alfred_B]

Originally Posted by Mad_Hatter
Originally Posted by Alfred_B
How else do you think the owner can afford a mcmansion and a boat?

Gotta have a healthy profit margin.

So what would you propose a shop owner do..run the business as a hobby?

No, just for the customer not to throw a hissy fit and have empathy for the rich guy instead of calling him a crook.

 

[AC1DD]

Originally Posted by grampi
Originally Posted by AC1DD
Originally Posted by domer10
I have personal friends who own shops....and trust me the mark up on their end is bogus and they will be first to admit it. If they need a part they call Napa, the same Napa that me or that exact person could go to and pick up said part. The shop then adds a additional 40 percent mark up on a part that got delivered from a store a mile away. Shops make their bones on unsuspecting customers. Overhead or not, they charge 100 dollars a hr some shops. On a employee that makes less than 25hr. There is no justification for marking up a part 40 percent and then claim overhead. Shops are all about gouging unknowing customers.



Bingo....most are rip off artists, that is if they even do any work at all that you pay for. Nobody says they shouldn't mark up some parts to make money but the outrageous amounts they usually charge seems like highway robbery.


This is something that people have been going round and round about for years. The trick is finding an auto repair place that you can trust. I am lucky to have found one. They do have to pay for their overhead so there are going to be mark ups, and you are having them do something you can't do, or just don't want to do so you're going to have to pay for that service. It's the consumer's responsibility to use a place that is giving you a good value for the amount you are paying. If a person feels like they are being ripped off, then it's time to find another repair shop...



You just summed up the bottom line though...you were "lucky" to have found a shop that is competent, and not ripping you off.
Those shops are literally as rare as hens teeth.

 

[Hall]

Originally Posted by Alfred_B
How else do you think the owner can afford a mcmansion and a boat?

Gotta have a healthy profit margin.

Good for him !

Does your pay cover your basic living expenses only and not a dollar more ? I'll bet not but it's okay for you..... Tell your employer you need to reduce your pay.

 

[Alfred_B]

Originally Posted by hallstevenson
Originally Posted by Alfred_B
How else do you think the owner can afford a mcmansion and a boat?

Gotta have a healthy profit margin.

Good for him !

Does your pay cover your basic living expenses only and not a dollar more ? I'll bet not but it's okay for you..... Tell your employer you need to reduce your pay.

Lacking reading comprehension, I see. I am all for healthy margins, not sure why so defensive.

 

[KGMtech]

To clarify: my complaint - a rip off - was due to the 300% price difference on the exact same Moog part. I have no issue with this shop's labour charges, shop supply charges.

That this shop manager felt it necessary to slander RA to justify his 300% markup was both juvenile, and unnecessary .

I would have allowed this shop to proceed with the complete wheel hub repair if they had a more reasonable markup on the part, 100% to 150% would have been okay IN MY OPINION - given that they do have to warranty the full work. This shop does not stock the part, it would have to be ordered, so don't cry about his carrying costs!

FWIW, I did accept to have this shop do $ 263 CAD in work for replacing a worn rear knuckle bushing - a job for which I did not have the proper tools, and ironically in this repair, his price of the part was $ 41 CAD, compared to what I could source myself for $29 CAD, so they have a variable markup system for parts?

To the BITOG's that are working in the trade, managing a auto repair business, supplying the automotive repair trade, I do respect that these businesses have no reason to bend their rules to please the DIY crowd, when they make enough business from the majority of car owners that don't know cars or don't want to get their hands dirty. My opinion is just that, I voted to decline the wheel hub repair quote with my own DIY knowledge & ability.

So I clearly offended some of you in the repair trade, but I am - and many other DIY BITOG's are not your typical target customers in the first place. If nothing else, this post serves to verify the savings to be had by purchasing the tools, develop the skills to DIY.

To why I selected Moog parts for this 2009 Ford Flex? well the brand had the RA heart emoji, it came with a 3 year / 36k mile warranty, and was priced in the mid point relative to SKF / TIMKEN brands that didn't have a 3 year warranty. Maybe I made the wrong choice, but having worked for 24 years in the Automotive industry, I know that all assemblies with moving pieces have a small potential for premature failure. How the brand covers the end consumer for these failures influences my decision to continue to support them or not.

I thank you all for sharing your opinions, regardless if you agree or not with my observations.
Ken

 

[AC1DD]

Originally Posted by Alfred_B
Originally Posted by hallstevenson
Originally Posted by Alfred_B
How else do you think the owner can afford a mcmansion and a boat?

Gotta have a healthy profit margin.

Good for him !

Does your pay cover your basic living expenses only and not a dollar more ? I'll bet not but it's okay for you..... Tell your employer you need to reduce your pay.

Lacking reading comprehension, I see. I am all for healthy margins, not sure why so defensive.



There are proponents of the automotive repair industry that will deny that ANYthing about the industry is wanting or substandard, no matter how bad things are and the
quality of the work, competence, and ethical standards at least in the USA are bad more often than not.

 

[KrisZ]

Originally Posted by KGMtech

That this shop manager felt it necessary to slander RA to justify his 300% markup was both juvenile, and unnecessary .


This is the only part from your post that makes sense. The manager acted unprofessionally, as he has absolutely no obligation to justify his markups, especially from a parts provider that is totally irrelevant to Canadian shops an could've answered in a more tactful way. But then again, your price comparison makes zero sense too. It is the same as comparing your salary or hourly wage to that of a Chinese worker. Would you respond any better if someone alleged your compensation is a rip off because Chinese or Indian workers can do your job for much, much less?

 

[01rangerxl]

Originally Posted by KGMtech


That this shop manager felt it necessary to slander RA to justify his 300% markup was both juvenile, and unnecessary .



I agree on this point, what he said is false, and just being straight up about why the part costs more through him would have been a better approach. I don't have time to spin stories, I just tell the customer my price and time frame and exactly what I am getting them. I will even refer them to other places if it's not worth the hassle for either of us to get it through me. I actually have a list of companies I provide to people who come in thinking they will find 1972 C-10 parts at a new car dealership.

Quote

This shop does not stock the part, it would have to be ordered, so don't cry about his carrying costs!


Yes, but the place he's buying it from does, or will get it from another store today...so they charge him more than Rock Auto would. His markup isn't the difference between his price and Rock Auto, it's the difference between his price and where he's buying it from.

Not all places have company credit cards and can just buy from wherever. I can get reimbursed for things I buy for work with my personal card, but it's a pain. I'm not even going to try to get Rock Auto a paper check from the accounting office. I buy from places I have a charge account with, and aside from Brock Supply, they generally cost more than Rock Auto.

Quote

and ironically in this repair, his price of the part was $ 41 CAD, compared to what I could source myself for $29 CAD, so they have a variable markup system for parts?


You need to base his markup off his cost from the place he's purchasing from. Different vendors can have very different prices on the same/similar things.

But yes, markups can be variable at multiple points in the chain depending on a lot of factors, except with car manufacturer warranty parts which are always 40% over dealer cost (at least with the brands I have dealt with).

 

[clinebarger]

At 100% markup....$387.00 is definitely believable. While I believe 100% is excessive.....A lot of shops do it that way!
Moog lists the part (513275) for $188.90 on their website which is most likely the suggested retail price.

I like to use @ 20-30% markup on my parts......But I DO NOT offer "Loss Leader" services like oil changes, wiper blades, alignments, Tire work,etc.... I can see why shops that do these types of services need to charge more markup on parts, But more around 40-60%.

 

[4WD]

Chris… we no longer have a pro like you here … we have 3, no 2 Independents left. One of them is famous for having multiple vehicles "opened up" and then we have to make a "decide" … one is decent but very busy.
The 3rd who just could not stand his ground on price now runs the Walmart shop … closed his doors long ago.

Good news is our small town GM/Mopar and Ford shops keep employees … went to get bulbs at Ford today … 3 guys working a cab off PSD while all other bays were one on one jobs … I had to park on the street.
These guys don't realize they're pushing work to dealerships that knock it out quickly to offset hourly rate.
(a number of these vehicles were clearly past warranty).

 

[clinebarger]

Well.....I'm very busy & backlogged 2 weeks right now! And know work is lost because of it. All I can do is keep appointments & do quality work by working on no more than 2 vehicles at once.

I've been advised to hire help....No thanks, I've managed enough mechanics in my career!

 

[4WD]

That's a good plan … people can catch a ride a few days and then it wears off even within family …

 

[PWMDMD]

As a medium-sized business owner, I can say overhead is a [censored]. Rent, utilities, business-related insurance, a staff of 24, health insurance, 401k contributions, just had to update 26 computers, maintenance and replacement of equipment, supplies, etc, etc, etc. Multiple millions in sales becomes...well a fraction of that when everyone else gets paid before I pay myself.

It's the free market...if someone doesn't like my prices then they can go elsewhere.

 

[JC1]

Originally Posted by clinebarger
Well.....I'm very busy & backlogged 2 weeks right now! And know work is lost because of it. All I can do is keep appointments & do quality work by working on no more than 2 vehicles at once.

I've been advised to hire help....No thanks, I've managed enough mechanics in my career!


Cline,

Glad.to hear you are doing well. I hope you don't get burned out.

Do you know at least one good mechanic that is dependable as you? I know where you are coming from having to deal with others but it may be wise to at least think of adding someone to help with your success.

 

[Hall]

Originally Posted by clinebarger
At 100% markup....$387.00 is definitely believable. While I believe 100% is excessive.....A lot of shops do it that way!
Moog lists the part (513275) for $188.90 on their website which is most likely the suggested retail price.

I thought shops typically charge the customer the MSRP amount while they generally pay well under that. Using the part you list, they're probably paying 50% of that price.

Just checked and even that ^^ probably isn't accurate anymore (the MSRP is wildly inflated). RA sells that part for $90, Amazon is $93. A shop might be paying $50-75 for this, yeah ?

 

[bdcardinal]

Originally Posted by hallstevenson
Originally Posted by clinebarger
At 100% markup....$387.00 is definitely believable. While I believe 100% is excessive.....A lot of shops do it that way!
Moog lists the part (513275) for $188.90 on their website which is most likely the suggested retail price.

I thought shops typically charge the customer the MSRP amount while they generally pay well under that. Using the part you list, they're probably paying 50% of that price.

Just checked and even that ^^ probably isn't accurate anymore (the MSRP is wildly inflated). RA sells that part for $90, Amazon is $93. A shop might be paying $50-75 for this, yeah ?


Negative. When I sell to a shop they get 20% off MSRP, some are at 25% off if they buy a lot. What they charge their customers is their deal.

 

[01rangerxl]

Originally Posted by hallstevenson

Just checked and even that ^^ probably isn't accurate anymore (the MSRP is wildly inflated). RA sells that part for $90, Amazon is $93. A shop might be paying $50-75 for this, yeah ?


No, Rock Auto and Amazon don't do wholesale pricing like that, and it's rare anyone will be cheaper than those two.

For me to get an equivalent part in the next couple hours, I could buy a "Precision" (probably Moog) line part from O'Reilly's for $167, an SKF from NAPA for $169, or a Motorcraft from the Motorcraft place for $177. I'd probably sell it for $250. $387 does seem high, but it lines right up with O'Reilly's "suggested list" on their commercial website, so his list is probably just the inflated list shown on his supplier's website, not even something he calculated based on his cost. If I went into my local O'Reilly's as a regular retail customer right now, the hub would be $228 (not including sales tax).

 

[UG_Passat]

I'm lucky, my mechanic installs the parts I supply. If he doesn't like the part, he tells me is doesn't recommend installing that part (brand) and why.