Yes most repair facilities charge list price. If you go to oreilly auto, and look at the ticket, it will show how much you paid, and how much list price is. Typically that is around 75-100% markup.
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How much do shops markup replacement parts?
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We mark up parts that cost $20 and under 100%, over $20 under $55 75%, over $55 60% with a cap of $150. Unfortunately there's not a large gap between walk-in customers and commercial accounts anymore. I sell dealer parts at list price for the most part.
We allow the customer to bring there own part if they choose, there's absolutely no warranty what so ever (if it fails right out of the box you pay the full labor, I'll put on another part if you wish for full labor again) and we mark the labor up. It takes money to keep the door open. It's simple math.
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Originally posted by shumpertdavid View PostWe mark up parts that cost $20 and under 100%, over $20 under $55 75%, over $55 60% with a cap of $150. Unfortunately there's not a large gap between walk-in customers and commercial accounts anymore. I sell dealer parts at list price for the most part.
We allow the customer to bring there own part if they choose, there's absolutely no warranty what so ever (if it fails right out of the box you pay the full labor, I'll put on another part if you wish for full labor again) and we mark the labor up. It takes money to keep the door open. It's simple math.
It is a business andpeople forget that. It takes lots of time and money to run an effecient shop. Plus most shops offer a warranty of 12/12 and that mark up helps them be able to back that up. Hell I mark up parts on side jobs too plus 50/hr. its my time.89 dove grey lx, turbo blowthrough
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Originally posted by 03trubluGT View PostAs one could tell, I don't do much business with shops. I guess it's time to start turning my own wrenches again.
2 shocks, 2 upper control arms, 2 lower ball joints, 2 sway bar end links and an alignment ran $1150.
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I also take my own steaks in when we go out to eat too! I have always gotten tickled over posts and peoples thoughts on this subject. I have bent wrenches since the late 60's. I as well as a lot of others here have heard all of the excuses! I don't have all the tools but.... My current schedule is cramped. I can't figure where these last bolts go etc. etc.
As expensive as repairs are and how much it takes to make one's daily nut it is amazing there are repair shops left do do the things customers need done. Suck it up and pay the money! One will always find in retrospect that someone somewhere could have done it better, cheaper or whatever.
I am sorry for the rant but, after all the money, time, schooling and getting ripped off by unscrupulous owners I have become callous to questions like this.
Find a good tech here and stick with him/her and pay their price!! If they are honest and worth their weight in sh** they will price according to the abilities of the client!!!
One last word of advice TIP THEM too. THEY WILL REMEMBER!!!!
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I really don't understand why they mark them up so much.
I have a commercial account and a couple different places and the prices are crazy compared to off the street. I purchased a belt last week and off the street was $38, my price was $20. Why wouldn't they just sell it for $38
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Buisness' are in buisness to make money. Most people that take their car in have no tools or no time, or knowledge, those people have to pay, parts are marked up, techs have to be paid, overhead prices these days are through the roof (no pun).Originally posted by SilverbackLook all you want, she can't find anyone else who treats her as bad as I do, and I keep her self esteem so low, she wouldn't think twice about going anywhere else.
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Originally posted by garycrist View PostI also take my own steaks in when we go out to eat too! I have always gotten tickled over posts and peoples thoughts on this subject. I have bent wrenches since the late 60's. I as well as a lot of others here have heard all of the excuses! I don't have all the tools but.... My current schedule is cramped. I can't figure where these last bolts go etc. etc.
As expensive as repairs are and how much it takes to make one's daily nut it is amazing there are repair shops left do do the things customers need done. Suck it up and pay the money! One will always find in retrospect that someone somewhere could have done it better, cheaper or whatever.
I am sorry for the rant but, after all the money, time, schooling and getting ripped off by unscrupulous owners I have become callous to questions like this.
Find a good tech here and stick with him/her and pay their price!! If they are honest and worth their weight in sh** they will price according to the abilities of the client!!!
One last word of advice TIP THEM too. THEY WILL REMEMBER!!!!
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I have owned my shop for 19 years, most of the comments on here is from the other side of the fence (customer) as they should be since the thread is about this. I by no means are going to condone any outrageous markups, but I charge $75 hourly and try to operate on a 60% mark-up. I can only get $75 rate for billable hours, some weeks 10 some weeks 35 but never efficient at 40 plus for a 40 hour workweek. So income is never steady. Now lets take in effect some overhead:
shop payment or rent
insurance for building and shop keepers
tools and new tools
chemicals for assemly and cleaning
taxes
sale taxes
more taxes
some more taxes
phone service
internet service
parts car and all it expenses
schools and training expenses
bookkeeping expense
electricity
water and sewer
building maintenance
uniforms and rags
these are just a few things that the "healthy" markup tries to pay for. When all said and done I sometimes can more money flipping hamburgers at Mickey D's according to my customers. Although I still enjoy working on cars, so I will still endure this harsh atmosphere because I am hardheaded and still enjoy working very hard for little pay. Bottom line is charge as much as your business sector will endure, try to make everybody happy, but it is tough in todays market to just be in business. Although its all good.
DON
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Originally posted by 03trubluGT View PostAs one could tell, I don't do much business with shops. I guess it's time to start turning my own wrenches again.
2 shocks, 2 upper control arms, 2 lower ball joints, 2 sway bar end links and an alignment ran $1150.
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This is a big part of the reason I got out of doing general mechanic work. Customer bitches about the price but it too lazy to do it themself. When they bring their own parts, they expect you to warranty them when something fails even if it was their parts. Been there, done it and even have an old T shirt to remind me of 4 1/2 years I wasted on that bullshit.
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I run a body shop and we do not mark up parts at all. We negotiate discounts with dealerships and other vendors. The customer pays the same price for a part through us that they would have paid had they gone to O'Reilly or a dealership themselves. Unlike mechanics shops, we are only able to charge about $42 per hour in labor due to insurance regulations. At the end of the day each shop has the right to charge whatever they want for repairs. We all are in business to turn a profit.
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