Date: Sat, 4 Sep 2010 13:07:54 -0500
Reply-To: mcneely4@COX.NET
Sender: Vanagon Mailing List <vanagon@gerry.vanagon.com>
From: Dave Mcneely <mcneely4@COX.NET>
Subject: Re: How much should parts cost?
In-Reply-To: <003401cb4c56$666f74f0$334e5ed0$@com>
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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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