I wondering how this works as far as the amount of markup on different priced parts. I went thru some of my statements from my mech, he is really good about part numbers and even where it comes from, aap, napa etc... so it's easy to look up the price online and figure out the percentage but it's not always the same percent plus it's not the same for parts in similar price ranges.
Parts markup by mech
- Thread starter Duffyjr
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Almost every parts store has "jobber pricing" for techs, which is normally 15-20% off list. Normal procedure is to charge the customer list.
Aftermarket shops usually use a parts mark-up matrix:
https://www.ratchetandwrench.com/articles/3533-building-a-parts-matrix
He only charges $65 and hour so I'm ok with what ever he marks up his parts I was just curious how it worked. For instance one part was $28.xx and he charged me $42 which is around 42% (I know it's more at his cost) but this is what I don't understand, on another statement there is a part that is similar in price but the percentage was way lower. So maybe he is getting that part even cheaper.
At the dealer, and every independent garage I worked at, we simply charged the customer list price. Our profit on parts was just our discount.
Around here the dealers usually follow that practice, or 1.5x cost.
Independents typically mark up parts more steeply and charge a lower labor rate, which is part of the reason they try to use aftermarket parts whenever possible.
Most of the guys I know in the business typically double their cost on most parts.
The matrix like the one shown is a good idea. Just had a thermostat replaced today and they didn't even list the part separately but I can buy 'em at the parts store myself for $15. If they listed it at $30 or even $40 on the invoice, the average customer wouldn't blink an eye. $40 for a car part that just "broke" on them ? Obviously when the part is $400, for example, it's hard to double (or more) the price but if they can, good for them !
Yep... My lady and I paid $299 on a $149 alternator...
I also believe it is a input to off set come backs for bad parts... Aske me how I know that ? Had a hoopty alternator fail after 11 miles. Championship material there.
Our $148 labour rate doesn’t seem so bad when we only charge list for parts.
is that Canadian pesos?Our $148 labour rate doesn’t seem so bad when we only charge list for parts.
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Yep this is how it's supposed to work. For instance if your mechanic buys a part from AZ that retails for $50, AZ sells it to them for $30,the mechanic charges you $50 (the original retail price).
Here's my solution to that: Do your own work and buy your own parts.
Source: parts distributor and mechanic
Source: parts distributor and mechanic
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The other way I see it is, if I can't do the work and take it to a shop, I don't have any say in what they charge. If I feel it was excessive, I just don't go back.
classic trick is buying an OE supplier part and charge list price of the genuine
works every time
works every time
And tell the customer that it is always the exact same part as what is being sold by the dealer.classic trick is buying an OE supplier part and charge list price of the genuine
works every time
Not how it works at all, at least around here.
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