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Date:         Sat, 4 Sep 2010 15:36:47 -0700
Reply-To:     BenT Syncro <syncro@GMAIL.COM>
Sender:       Vanagon Mailing List <vanagon@gerry.vanagon.com>
From:         BenT Syncro <syncro@GMAIL.COM>
Subject:      Re: How much should parts cost?
In-Reply-To:  <147401cb4c7a$298abb70$6801a8c0@PROSPERITY>
Content-Type: text/plain; charset=us-ascii

I understand the whole mark up deal. As far as cost of keeping inventory etc. If a shop can get parts for less than retail (they should), it seems the margin for mark-up is built in.

BenT

Sent from my spare tire

On Sep 4, 2010, at 2:43 PM, Scott Daniel - Turbovans <scottdaniel@TURBOVANS.COM> wrote:

> here is all the work, responsibility and effort a shop goes through when it > supplies a part for a car repair job - > > first is price and quality of the part - you have to know it's going to be

> adequate or better. > Availability is a factor - keeping regularly needed parts on the shelf ties > up money, and takes up space. so some of that sure, but preferred not to > have too many scheckels tied up there. . > Availability also affects quality sometimes - there may be a part that's > more readily available, but costs more or is of lower quality, and from the > 'good supplier' takes a day or two. > > then there's actually putting the part on the car, which is 'really' ...most > people don't realize this, but just installing the part on the car or van is > almost *incidental* to the entire proceeds. Just screwing it on is a very > tiny part of the whole job picture ..... > There's the entire 'is this the part the car needs ? is it a good one ? has > the customer got the $ for it ? is it really going to fix The Issue, etc. > All that./ > > then there is ....fairly minor thing ..there's getting rid of the packaging > the part came in. > then there is managing cash flow to be able to pay the supplier in the first > ten days of next month for the parts the shop bought this month. > then there is documenting and carrying the thing on your invoices and tax > records for years ongoing. > > I've had people work for me. I've had a guy say he was doing 'all the work' > by installing the parts on the car. > He has 'no idea.' > I might work four hard hours before I can say 'here, put this water pump on > this car' ... > that's making sure that's what that car needs, that it's all of what that > car needs, that the customer is a fair reasonable person, that their check

> is good, or they have the money etc. > > I identified 23 ...23 full steps in the Car Repair Process, from the time > someone calls and says ' My car does X and I need it fixed' > until the job is done, paid for , and gone. And stays fixed of course. > > 23 steps, and the installation of the part is only ONE of those 23 steps. > > I'll install parts people ask me to install. > But I explain that I am responsible for the correct installation of the > part, not the result. > Say the car wanders all over the road .. > if they ask me to install their shocks....I put them on right, and it is > whatever it is , how it comes out. > If they want the actual problem fixed.. > then they have me diagnose and come up with a plan, then we do that , and > they get the result they were really after. > and of course .. > if a shop installs a customer supplied part, and the part is faulty .. > they don't owe removing and installing the next one for free. > If they provided the part, of course they are obligated to get a good one on > the car. And if any shop ever installs a faulty part, then wants to charge

> to replace it ... > that's the end of that customer for that shop of course. 'People just want

> to get what they paid for.' > Heck.. > they don't even really mind if it's expensive sometimes...they just want to > *get what they paid for.* > > anyway .. > if you really look deep into it .. > there's a lot that goes into getting it all to work out the vast majority

> of the time for each repair job. > a LOT actually ! > the part itself, or the parts themselves, are only a tiny part of the whole > picture actually. > A very important one for sure though ! > and really 'car repair' is pretty stressful overall...dealing with the whole > thing, and the people and cars day in and day out ..and sometimes employees > too .... > I don't envy most car repair shops and owner's. > > these days it's very much about the quality of the parts we can get. > I've had to learn which parts supplier knows to get a victor rintz red > lipped diesel engine rear main seal, for example. > it's getting harder and harder it seems to consistently get really well made > parts .. > even companies traditionally supplying german parts .. > now have diesel head bolts in the same box ...but it says made in Taiwan on > it .. > and funny thing ...these days 'made in Taiwan's is not that bad a thing > actually. those are the good inexpensive parts often, not that I see many

> parts from there. > I see them from Israel, Turkey sometimes, and I just got 185 R14 C tires > made in Thailand. > > 'parts' are a whole world unto themselves of course, > as we all know too well ! > Scott > www.turbovans.com > > > ----- Original Message ----- > From: "Dave Mcneely" <mcneely4@COX.NET> > To: <vanagon@GERRY.VANAGON.COM> > Sent: Saturday, September 04, 2010 11:07 AM > Subject: Re: How much should parts cost? > > >> Bruce, the most important thing is to have a good relationship with a >> shop, so that you trust the pricing. I agree that the shop should make a

>> profit on its services and goods on the customer's behalf. I find that >> independent shops are the best ones to deal with. >> >> I also understand what Daryl said about the parts paying the bills (and >> also paying the shop owner -- who must be paid). But, that said, I am >> lucky to have access to a shop whose owner is willing for me to buy the >> parts myself, and he installs them at his standard labor rate. He must be >> able to pay his bills and himself (one man shop) without the parts markup. >> What I do is ask him what he will have to charge me for the part. If it >> is less than I would pay elsewhere (sometimes it is), I buy it from him. >> If it is more, and the part I can get is of equal or better quality, I may >> buy it myself and take it to him. But I may not. My guy, likes most who

>> will accommodate in this way will include labor in the parts warranty if >> he supplies the part, but not if I supply it, so that is a consideration,

>> especially if installing rebuilt parts such as an alternator. >> >> The trouble with the situation you mention, is that you don't really know

>> what the shop is paying for the parts or what the markup is, and so you >> distrust the situation. MOST shops do not overcharge relative to their >> cost, but they may not shop for the best price for the best part, either.

>> Usually, they have a supplier they deal with on a regular basis, with a >> credit line, and they are reluctant to look elsewhere for a part, if that

>> supplier has the part. Even if you find a supplier that lists dealer >> (wholesale) cost in their catalog or web page, that does not mean that >> your mechanic pays that price for that part from the supplier he/she uses. >> The shop may be paying more or less than that, even from that same >> supplier, or from another one. Generally, a shop will charge you the same >> price the shop's supplier would charge you (the retail price) if you >> bought the part yourself from that supplier, so in that regard, it is a >> wash. >> >> Another consideration for me is that the shop is also providing the >> service of sourcing and acquiring the part, and not just the part itself.

>> It is like concierge service at a hotel. Since I am unlikely to need >> parts on a regular basis, I have to do some research and legwork when I do >> need a part. The shop has all that down. >> >> A straightforward conversation with the shop owner might help, either your >> bottom line or if not that, your understanding. >> >> David >> >> ---- Daryl Christensen <daryl@AATRANSAXLE.COM> wrote: >>> 30% minimum is the lowest markup to stay in business. Some are up to 50%

>>> or >>> more these days. Always said to me that the labor pays the help and the >>> parts pays the bills. >>> >>> Daryl of AA Transaxle >>> 425-788-4070 >>> "On the cutting edge of Old technology" >>> 86 Syncro Westy with a Zetec in the trunk >>> >>> >>> -----Original Message----- >>> From: Vanagon Mailing List [mailto:vanagon@gerry.vanagon.com] On Behalf >>> Of >>> Bruce Todd >>> Sent: Saturday, September 04, 2010 10:12 AM >>> To: vanagon@GERRY.VANAGON.COM >>> Subject: How much should parts cost? >>> >>> This question goes out to all the working vanagon mechanics & shops out >>> there...what would a reasonable and fair mark-up be on parts purchased by >>> the shop for the client? I think I'm getting gouged on a few things but

>>> before I make a call to discuss I thought I would ask the list. >>> >>> I do understand that parts are a profit item for a shop...but what is >>> typical? >>> >>> Thanks >>> >>> Bruce >> >> -- >> David McNeely


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