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Fair mechanics markup for parts!!!?
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Spence    Posted 08-27-2004 at 15:04:53       [Reply]  [No Email]
What's the fair markup percentage for auto
parts a mechanic would charge.

Some of these repair bills show fair labor, but the parts are out of sight.

It's no wonder they won't do a job if you buy the parts, the money's in the parts sales.

I figure no more than 10% of wholesale.



Bob    Posted 08-27-2004 at 23:49:59       [Reply]  [No Email]
Spence,

What do you do for a living? Please post complete info, with amount of income or salary, so we can judge if YOU'RE making too much at your job!


Spence    Posted 08-28-2004 at 08:55:28       [Reply]  [No Email]
I wasn't criticizing, I was trying to get a measure of what should be fair.

But I must admit I find it hard to justify a guy who all he has to do is pick up the phone to order the part and he doubles the price. I'm for a justified markup percentage. Added to that, the parts people deliver most of the time.


RusselAZ    Posted 08-28-2004 at 10:41:58       [Reply]  [Send Email]
The building inspector and fire department inspector came out and spent about 10 minutes walking around, signed a piece of paper which I had to take to an office to get another piece of paper. $500 piece of paper. at least on face it was just a single sheet of paper.

Life isn't fair. Parts or paper it just isn't fair.


big al    Posted 08-28-2004 at 03:08:50       [Reply]  [No Email]
a fool and his money are soon parted.


RusselAZ    Posted 08-27-2004 at 21:49:49       [Reply]  [Send Email]
Do you take your morning eggs and bacon to Denny's and have them cook them for you and serve them and wash your dirty dishes and provide the place to sit down and eat them for the tip you give the waitress?

There are many reasons why a quality shop will not put on carry in parts none of which have to do with sucking more money out of a customer.

Your idea of 10% markup is fictional. Though it is only billed in two parts, there are generally three things an auto shop has to sell. Time, Knowledge and quality parts. Parts profit is figured into the business plan. Without it, the Labor billings would have to go up, there is no way around it. In a response on a forum posting the question was asked how much oil to put in his Olds. Well, I lay out almost 300 dollars a month just so I have an information system to be able to answer that question. I also have a 6000 dollar hoist so the Mechanic who changes it won't have to work so hard. The mechanic who has all the same built in employee expenses at an auto shop that there is anywhere else. Except he has to furnish most of his own tools.

Lets look at a typical oil change beings I referenced a question about one. I get 100% markup on the oil. I get about 30% markup on the filter. I have a labor charge and a disposal fee involved. So, on a 31$ oil change price there is a layout of 6 or so dollars for the oil, about 8 dollars for the salary, anywhere from 4 to 6 dollars for the filter, .50 a quart for mandantory disposal fees, leaving not a lot for all the fixed bills that wait in the wings.

I have a few people each month ask how much an oil change is. I tell them. Then they ask how much beings they have their own oil and filter. I tell them the same price. With good reason.

As to installing carry in parts let it suffice to say that no quality shop can stand behind their work by doing so. You still pay the same labor rates with none of the benefits to you for having done so.


toolman    Posted 08-27-2004 at 22:03:26       [Reply]  [No Email]
russel,after the time i had changing the oil in the wifes car tonight i almost agree with you however a oil change where im at is 80 bucks and i can sure do it for alot less than that.


RusselAZ    Posted 08-27-2004 at 22:31:02       [Reply]  [Send Email]
WOW ! They must charge for looking in the radiator and checking the air in the tires!.

I was just thinking about a few things, one of which was the air filter the shop put on a diesel pusher RV a couple weeks ago. The darn thing cost me just over 200 dollars, would loved to been able to get 100% markup on THAT one!!

I'm all for people doing what they can for themselves. I can do the rest.


toolman    Posted 08-27-2004 at 22:36:26       [Reply]  [No Email]
i agree and i understand your overhead as well and you went to school to get the training to be able to do your job and like you said knowledge is something you sell,i do most of my repairs but when i don,t have the equipement or the knowledge i have a mechanic i will go to, often he is busy and will tell me what has to be done but he,s a good guy and folks know it, and i usually make it up to him in some way or another.


Maggie/TX    Posted 08-27-2004 at 21:36:09       [Reply]  [No Email]
I usually don't pay attention to auto parts, but recently noticed that the mechanic charged me $20.95 for the stuff they use to charge up a car air conditioner. At the parts house I can buy the same amount of cans of it for $12 and change. In the future I will try to find out what parts I need and get my own and bring them to the mechanic to install.


RusselAZ    Posted 08-27-2004 at 21:55:57       [Reply]  [Send Email]
Would you share all the charges on the repair order that is related to the AC recharge? A total breakdown would be enlightening.


Spence    Posted 08-28-2004 at 08:47:47       [Reply]  [No Email]
Don't bother Maggie, they won't do the work.
The money maker now isn't the labor it's the parts.

I had one offer a few years back. The mechanic said he'd do the work, just bring in the part.


Maggie/TX    Posted 08-28-2004 at 07:12:13       [Reply]  [No Email]
Russel, it was a complete AC job. 1 Compressor = $251.99, 1 Dryer = $52.79, 1 Orfus = $5.00, Freon Oil R174 = $8.00, 3 cans R134 Freon = $20.97, Labor = $189.00, Total = $550.61. This job was done in March 2003 and the air condition quit working before our hot weather was over that fall. Now I know my mechanic is an honest guy and the problem is probably something other than the compressor now, but I think it would have been cheaper to check everything AROUND the compressor that pertains to having it work then rather than have to take it back in again. I had the $$$ to have it fixed then and don't now. As a result I've been suffering a southeast Texas summer without AC and it's killing me.


RusselAZ    Posted 08-28-2004 at 10:23:18       [Reply]  [Send Email]
Thanks for sharing. If it was 20.97 for 3 cans that's not to bad though admit it is more than wally world. If it was 20.97 a can that would be taking advantage of someone.

Your compressor price tells me it is a re-man one. re-man's are fine for people who can do their own work but not for people who want long term success.

This job from me would have cost between 750 and 900 dollars. It would have had a new compressor, which is almost twice what yours was priced at, it would also have had around 250+ for labor because we would have done what we know needs to be done to keep one working like new.

We also have a 2 year no questions asked warranty on our AC work.

However, you need to take this back to whoever did it and have him check it. It may just have a minor leak that needs addressed and a recharge.


pete's dream    Posted 08-27-2004 at 19:12:42       [Reply]  [No Email]

Just spent 20 minutes outlining one scenario of the parts supply chain. Deleted it because it was confusing me. Anyway it is very difficult do determine a Fair markup unless you know exactly how the mechanic purchases his parts. Another part of this is: Exactly what does one consider to be wholesale?


Bob/Ont    Posted 08-27-2004 at 18:30:22       [Reply]  [No Email]
Spence, I get parts at trade price, 20% discount from the GM or Ford dealers. Add that 20% back on to the 80% I pay and you have a 25% mark up to get to list price. If you can do the work and need a fair dollar in parts ask for a quantity discount and they should give you trade price. Another thing I buy parts from the dealer and try to get everything done by early fall. I'm getting too old to have to do the work twice, usually crawling around in the snow under the car in January because of cheap parts that don't last. Got caught once though, repowered the 88 wagon and thought " I'll put on an exch starter so I don't have to do it next Jan" Well the exch gave me an extra year then in Jan it spun the clutch. Took it off to fix that and had to put in brushes, bushings and a fork as well as the starter drive. I rebuild my own starters now too.
Later Bob


The average    Posted 08-27-2004 at 15:20:37       [Reply]  [No Email]
markup on parts in the NE is 25-30 percent....even higher if yer having a dealership do the work....and they don't care if you like it or not.Supply and demand is in their favor. :^(

Clipper


Rajah from Delhi    Posted 08-27-2004 at 20:57:17       [Reply]  [No Email]
Hello Mr. Clipper, it has been such a long time since I have been able to communicate with you. I find myself in great need of another Cyberhaircut. My hair is gettin most shaggy underneath of my very own turban yes.
Rajah


toolman    Posted 08-27-2004 at 16:19:33       [Reply]  [No Email]
clippers right, stay away from the dealerships if you can, they like to let you think they are the only ones who are allowed to do warranty work too,do it yourself if you can if not look around , ask around find a decent indepentdent and get to know him, he will welcome the work and once you get know him he might cut you a bit of a deal on parts if he knows he,s goin to get your work,now anybody know how much engine oil a v6 pontaic grande am takes, first time im changing it and the book tells me nada.lol


RN    Posted 08-27-2004 at 16:44:08       [Reply]  [No Email]
Oil Pontiac v6 engine? 2.8L? 3.1L? 3.8L? 4.3L? Year? whatever size and year- get 6 quarts of oil and new filter for engine. Small filter is about a 1/2 pint, large filter about a 2/3 quart capacity. Small capacity/engine will take almost 5 quarts, large engine with remote large filter will take 5+ quarts, with accessary oil cooler(tow package/performance) 6 quarts. Check dipstick level, biggest hotrod engine may ned an extra 1/2+ quart. RN


toolman    Posted 08-27-2004 at 18:32:22       [Reply]  [No Email]
thanks RN, just finished it up small filter although big enough that you can,t get the old one out or the new one in without taking a piece off the front underneath,not sure what it took by that time i was cursin, had 5 litres still have some left after i got it of the ramps course i had too much in , not lots but enough to bug me so back up it went on the ramps drained a capfull, all good to go now and i have a wealth of knowledge for next time, justt gotta go set the change oil light now so it goes off, give me my 50 an 60 cars anyday.lol


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