Repair shop parts markup

[J30inthe sun]

What is a fair and equitable markup amount a repair shop should charge if any for parts when I get work done?

Let say I need a part that I can buy myself at the local auto part store for $70.00. I assume the repair shop gets a volume or dealer discount from what I would pay. What is fair price they should charge me for that part? Keep in mind, I am having the shop install the part and I am a repeat customer.

My opinion is it should be about the same price I can buy it for. My thinking is they are in most cases getting the part delivered to them & they don't have to stock anything & they probably get billed for it later. Essentially they are just passing the part through. Am I way off base? Am I missing anything?

Please comment.

[DJ_B_Easy]

I agree with your logic.

[Rex]

There's usually a little more mark up than equal to what you'd pay. Though keep in mind, some of their parts mark-up is so their labor rates look better than dealerships, etc.

Generally, a shop's price for the same brand/quality part should be comparable +-10% to what you'd pay. Though smaller ticket items are usually higher.

[sbird1]

I manage a Yamaha shop and our mark-up is usually almost 50% over cost - MSRP vs. dealer cost.

[OriginalWheelman]

The shops I've worked in, we charge w/e list is for the part. We don't pay list, and we pocket the difference, but that is the benefit we get from doing business with one parts store constantly. I've seen some shops charge w/e they want for the parts, but IMO, it's unethical.

[IanS]

Rex hit it square on the nuts.

You will pay more for the part throught the shop, almost no question. Its part of the profit system. The higher part price offsets the lower labor rate a little. Many stealerships are charging $140+ an hour, while indipendants only charge half that. The discount that we recieve from the parts stores is less then you think. Also, remember, you get what you pay for, so the el cheapo part is rarely a good way to go. A good shop will be able to recomend the best bang for the buck as far as part quality is concerned. Also, whenever installing a part into a car, a shop is assuming a certain amount of risk. If the parrt fails prematurely, then the shop will have to replace it, free of charge. Its not the shops fault, but parts companies will not warranty the labor, so the shop gets the shaft.

I wouldn't suggest carrying in a part either, it s like bringing your own appitizer to a fancy restraunt.

If you cant afford to pay the markup, learn to install the part yourself.

[J30inthe sun]

The shops I've worked in, we charge w/e list is for the part. We don't pay list, and we pocket the difference, but that is the benefit we get from doing business with one parts store constantly. I've seen some shops charge w/e they want for the parts, but IMO, it's unethical.

That is fair and what I expect. I have no problem with paying list price or even 10-15% over what I can get the part for myself and I don't have a problem with the shop making a small profit because they get it less than I can.

Thanks for everyones reply.

[Rex]

Rex hit it square on the nuts.

Thanks, my Dad managed different service departments (dealerships, chain stores & independents) for ~50 years ... I learned a little

I wouldn't suggest carrying in a part either, it s like bringing your own appetizer to a fancy restaurant.

While this is true >95% of the time, there are a few independent shops that will allow you to bring in your own "new in box" parts, they charge a slightly higher labor rate & not do warranty replacement labor for free. It's rare and great when you can find it. Assuming you can get good parts for great prices. The Q45 guys had a shop near ATL that offered this (T3). They even offered you the opportunity to "buy out" a bay & mechanic for the entire day at slightly reduced rate.

[s0m3th1ngAZ]

I've seen it anywhere from 25%- a NAPA mom and pop garage i worked at to 300%, a Jag dealership my ex was a service manager at.

[IanS]

While this is true >95% of the time, there are a few independent shops that will allow you to bring in your own "new in box" parts, they charge a slightly higher labor rate & not do warranty replacement labor for free. It's rare and great when you can find it. Assuming you can get good parts for great prices. The Q45 guys had a shop near ATL that offered this (T3). They even offered you the opportunity to "buy out" a bay & mechanic for the entire day at slightly reduced rate.

There are always exceptions. Expecially if the mechanic is a friend. I will bend over backwards for certain people. You scratch my back, and I will scratch yours kinda thing.