Shop parts mark up question.

[urrlord]

Got a question for all here about shop mark up on parts.A few months ago my 93 Tracker had the timing belt break.My normal shop no longer does timing belts,my other mechanic was out of town.So I took the car to another shop that was recommended by my usual shop.I was given an off the top of the head quote by the shop manager for 400-450 bucks,which was about what I expected.So I gave the go ahead.

I later got an email from the shop saying the vehicle would be ready a day later than scheduled because they "did not like the look of the timing belt tensioner pulley"and had to get one.This was a bit odd as the tensioner pulley should have been a no brainer,from the start part to replace along with the timing belt.

When I go to pick up the Tracker I'm presented with a bill for 800$.I was floored and asked why it was so high."well parts were a bit high".I know that the belt kit,water pump,etc was about 100$-125$ depending on which parts store was used.Labor was 375$ ,about right by my estimate 5 hours at 75$ an hour.Maybe a little high.Then I looked at the parts list....antifreeze 24$(in a vehicle that takes 5 qts fluid tops,probably 50/50 mix),tensioner pulley was 80$ I know that part is a 20$ part.In total there was 360$ for 100-125$ of parts,then there was a 65$ charge for "supplies".WHAT?

I had heard on the net that it was customary for a shop to double the parts price.This shop tripled the parts prices.I asked my normal shop what their policy was.They stated they did a 15%-25% markup on parts.Some other mechanics I talked to stated they did not mark up parts for a job.I feel this shop was padding the bill.

So my question is -what is the custom in your part of the world?I'm in central Georgia USA.

Also right now I plan on giving this shop some bad reviews online about their billing practices.I already had one friend who had about a grand to spend on getting some work done on his truck change his mind about using this shop.After I talked with my primary shop they said they had been getting bad feed back about this shop recently and would no longer refer work to them.

Any opinions or suggestions?

 

[Chris142]

Oue markup is about $60 for every $100. So if the part cost me $100 it would cost you $160. Gotta pay the bills somehow. Here an estimate muat be within 15%. Any thing over and we must call and get an ok from the customer as well as document the call with the date, time etc.

 

[Gabe]

NW Indiana, the shop I work at sells everything for around list - which is pretty close to 20% over retail. AutoZone Pro gives us an 8 to 10% off most of their stuff, so that might make it closer to a 30% actual mark up.

Some online parts are insanely cheap. I picked up Moog GM ball joints a couple of days ago for about $27 each and they list for $73. Something like a multifunction switch can be had for less than $80 and list for almost $500.

 

[Lillikai]

I wouldnt pay that bill! Thats ridiculous, they should have called you before they did any of the work to make sure you knew what the final price was going to be. Id pay what they quoted you the first go around. If they dont like it then too bad, they didnt call you to clarify and get confirmation.

 

[Spazdog]

The shops I worked for were usually 50% markup. (Western Auto was whatever the parts counter charged which was probably about a 50% retail markup)

Big ticket items (Mopar remanufactured transaxles, Jasper engines...etc...) were usually 25%

 

[exranger06]

I work part time at Napa. If you ever buy parts there, on the receipt you'll see two different prices: "list" and the regular price. The list price is roughly 50% more than regular price. Nobody pays list price except people who get their cars fixed at a shop. The shop pays the regular price and marks up the parts to the list price for the customer. One time I took my Explorer to a shop for an alignment. They said they couldn't do it because one of the ball joints and a tie rod was bad. They gave me a quote to fix it: over $750. I looked up the parts cost and compared them to the prices on the invoice. Sure enough, the prices matched the "list" price right down to the penny. I did the work myself, and replaced all 4 ball joints (the $750 price was just ONE ball joint and the tie rod and alignment) and the tie rod for less than 300, plus $90 for the alignment.

 

[Kruse]

While they have to have a markup to pay for items that will never be on your bill (heat, insurance, taxes, utilities, etc.), I feel they should have called you when the price went way over what they quoted you. This probably should have been discussed ahead of time and since this was the first time that you used them, perhaps you should have gotten a written estimate.

 

[user52165]

The real qustion should be: Are they allowed to charge more than their original (written?) estimate without your permission?

In many (most?) states consumer prorection laws require authorization before additional work or expense may be added.

 

[KitaCam]

I stopped trusting a mechanic who in the past 4 years had made it a practice to charge way more than is reasonable...300% over RETAIL for parts...he's no longer my mechanic.

 

[HerrStig]

Originally Posted By: user52165
The real qustion should be: Are they allowed to charge more than their original (written?) estimate without your permission?

In many (most?) states consumer prorection laws require authorization before additional work or expense may be added.
YES!!! check with your attorney general's consumer protection department.

 

[HerrStig]

I deal with a shop which lets me get my own parts. I never quibble with their labor charges which are always reasonable. Sometimes I know they have had to bust their humps on an exhaust system for example. They know that I do some work myself and that I know when something can be a dog to work on. I stay away from high overhead operations, especially dealers. I also have an inexpensive OBDII scanner, it's self defense.

 

[Rock_Hudstone]

Originally Posted By: urrlord
Any opinions or suggestions?

You should have asked for a written receipt before any work began including instructions to call you if additional repairs were needed in excess of the initial estimate.
However, they did give you a hint of things to come with the e-mail about the tensioner, I would have been on the phone to them pronto after that and nailed down a firm price.

Sounds like you've learned an expensive but valuable lesson: Don't trust anyone. Especially a shop you're unfamilar with. Hopefully they at least did a good job.

 

[The_Eric]

Shops will vary greatly on parts mark up. Some don't make much money on parts.

Some, like the one I work at will do anything and EVERYTHING to maximize profit on parts, then charging the customer full boat list. My boss makes darn good money on parts.

One example was a timing belt kit. Shop price was in the 70-80 dollar range. He turned that around and sold it to the customer for 200+ dollars (list).

 

[HTSS_TR]

Originally Posted By: HerrStig
I deal with a shop which lets me get my own parts. I never quibble with their labor charges which are always reasonable. Sometimes I know they have had to bust their humps on an exhaust system for example. They know that I do some work myself and that I know when something can be a dog to work on. I stay away from high overhead operations, especially dealers. I also have an inexpensive OBDII scanner, it's self defense.

My shop does this too.

 

[bdcardinal]

Were the parts used factory? I ask because people will rant at my work that they can get a coil for their 4.6L for $9 online. Sure that's great but its not a OE part.

We usually give a 20-25% discount off of MSRP to wholesale shops. There are some parts where the difference between my cost from Ford and MSRP is less than 15%, in those cases we split the difference or go cost +10% to a shop.

Also with the brands we deal with, the manufacturer just has a "suggested" retail price and the individual dealers are free to sell parts at whatever they feel the market will allow.

 

[The Critic]

Perhaps the shop used dealer/OE parts, as opposed to the Chinesium aftermarket parts. If that's the reason for the higher prices, then good for them.

 

[urrlord]

Around here I have not ran into a shop that charges such a high markup.I did not get an written estimate,as I said I got an "off the top of the head price",a verbal estimate.Around here up until now a shop would only exceed the verbal price if there were only new problems found and if it was a big upcharge they would call you to discuss it.This shop had my phone number and email address,so they could have communicated with me in a better manner.


I had used this shop in the past and had good work done there,price was a little over average for the area,but the guy was good.He retired earlier this year and sold his shop.Therein lies the problem I think.I think the new owners are padding the bills in an effort to pay off the loan asap.

In many cases I furnish my own parts.In this case I was not sure what the problem was,I suspected the timing belt but was not sure.Otherwise I would have ordered my own parts.Also I had a time constraint on how long I could afford to have the vehicle off the road.This particular shop upcharges their labor rate an additional 10$ an hour if you furnish parts.I would have gladly done that if I was sure what was wrong and had not had time constraints.

This shop uses Parts Master,O'Reilly and Napa.No factory parts were used.

As one earlier poster suggested I have learned a valuable lesson.Now I want to warn others about this places practices that are out of line for this area.I know they have an internet presence and I am thinking about a post there and giving them a negative review online with Yahoo and whatever other business sites I can find.

 

[Smoky14]

OEM tensioners for a Honda run in excess of $150.00 unless they are junk, if you got OE it was a good deal.

YMMV

 

[HWEaton]

Originally Posted By: exranger06
I work part time at Napa. If you ever buy parts there, on the receipt you'll see two different prices: "list" and the regular price. The list price is roughly 50% more than regular price. Nobody pays list price except people who get their cars fixed at a shop. The shop pays the regular price and marks up the parts to the list price for the customer. One time I took my Explorer to a shop for an alignment. They said they couldn't do it because one of the ball joints and a tie rod was bad. They gave me a quote to fix it: over $750. I looked up the parts cost and compared them to the prices on the invoice. Sure enough, the prices matched the "list" price right down to the penny. I did the work myself, and replaced all 4 ball joints (the $750 price was just ONE ball joint and the tie rod and alignment) and the tie rod for less than 300, plus $90 for the alignment.


Personally I think you're wrong in that shops are charged the same price that a walkin retail customer pays. Shops generally get installer pricing which is less than over the counter retail. I get all my parts almost exclusively through CarQuest. I charge on average 15 to 20% over what a regular customer would be charged over the counter at CarQuest. I also get a rebate from CarQuest and the amount is dependent upon how much I buy from them. Due to getting this rebate, along with my regular markup on parts, I refuse to put on customer provided parts. I have to. It's how I make my living and provide a job to someone else. It's my business model and it does well. It must. We're generally very busy.

 

[Barkleymut]

Have you talked to the shop manager why the bill was so high?

It really makes me mad that you are ASSUMING so much. Don't dare go post something on the net about a company if you don't even know the full story.