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  #1 (permalink)  
Old 23 Mar 2012, 03:16 pm
cameo
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Default Part markups by service shops

What is the norm in part price markups by service shops if there is such
a norm at all? I get the impression that part markups are a major source
of income for many shops. That would explain why they frown upon
customers bringing their own parts. I'd prefer they'd rely on their
labor for that, not from being a part merchant.
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  #2 (permalink)  
Old 23 Mar 2012, 08:14 pm
Elmo P. Shagnasty
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Default Re: Part markups by service shops

In article <jkilkn$qen$1@dont-email.me>, cameo <cameo@unreal.invalid>
wrote:

> What is the norm in part price markups by service shops if there is such
> a norm at all? I get the impression that part markups are a major source
> of income for many shops. That would explain why they frown upon
> customers bringing their own parts. I'd prefer they'd rely on their
> labor for that, not from being a part merchant.


There's a dealership around here that uses their own internal part
numbers, so you can't take your invoice and shop around for the parts.

It's big business.

Indy shops generally are happy to use your own parts--but I let them
take care of it anyway, since that puts the whole repair on their
shoulders. As long as they're being honest about it, I go ahead and
give them all the business.
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Old 24 Mar 2012, 01:11 am
Erik
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Default Re: Part markups by service shops


> > What is the norm in part price markups by service shops if there is such
> > a norm at all? I get the impression that part markups are a major source
> > of income for many shops. That would explain why they frown upon
> > customers bringing their own parts. I'd prefer they'd rely on their
> > labor for that, not from being a part merchant.


Would you go to a restaurant with your own food and ask them to prepare
it?

Erik
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Old 24 Mar 2012, 07:06 am
Tegger
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Default Re: Part markups by service shops

cameo <cameo@unreal.invalid> wrote in news:jkilkn$qen$1@dont-email.me:

> What is the norm in part price markups by service shops if there is such
> a norm at all? I get the impression that part markups are a major source
> of income for many shops. That would explain why they frown upon
> customers bringing their own parts. I'd prefer they'd rely on their
> labor for that, not from being a part merchant.



For OE parts... Depending on their relationship with the dealer they're
buying from, they'll get between 10% and 30% off full-retail. They then add
that back when they re-sell to you. That way they stay competitive with the
dealers for parts retail prices.

You may not like paying a markup on parts and supplies, but that's the way
it works everywhere, not just in auto repair.

If garages could not mark up parts, they'd increase their labor charges to
compensate, and you'd be even more unhappy.


--
Tegger
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Old 24 Mar 2012, 09:56 am
jim beam
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Default Re: Part markups by service shops

On 03/23/2012 11:11 PM, Erik wrote:
>>> What is the norm in part price markups by service shops if there is such
>>> a norm at all? I get the impression that part markups are a major source
>>> of income for many shops. That would explain why they frown upon
>>> customers bringing their own parts. I'd prefer they'd rely on their
>>> labor for that, not from being a part merchant.

>
> Would you go to a restaurant with your own food and ask them to prepare
> it?
>
> Erik


for some high end restaurants, if you go with your own pheasant or wild
boar, they'll do it for you. [call ahead of course, and be a regular.]
and you can go with your own wine. yes, you still pay, but they'll do
it. particularly if there's some extra for the chef.


--
nomina rutrum rutrum
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  #6 (permalink)  
Old 24 Mar 2012, 12:06 pm
cameo
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Default Re: Part markups by service shops

On 3/23/2012 11:11 PM, Erik wrote:

> Would you go to a restaurant with your own food and ask them to prepare
> it?


It's not the same thing because mechanics already charge quite a high
price for their labor which should be more than enough to live on. But
in any case, I am not so much agains any markup per se. I was just
wondering if there was some kind of industry standard for such markup.

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Old 24 Mar 2012, 12:45 pm
cameo
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Default Re: Part markups by service shops

On 3/24/2012 5:06 AM, Tegger wrote:
>
> For OE parts... Depending on their relationship with the dealer they're
> buying from, they'll get between 10% and 30% off full-retail. They then add
> that back when they re-sell to you. That way they stay competitive with the
> dealers for parts retail prices.


OK, I would say that would be reasonable.

> You may not like paying a markup on parts and supplies, but that's the way
> it works everywhere, not just in auto repair.
>
> If garages could not mark up parts, they'd increase their labor charges to
> compensate, and you'd be even more unhappy.


Labor charges are high already as they are. My question was prompted by
the conversation I had with my independent mechanic about the heater
core's upcoming replacement. As it turned out, the current core was
installed five years ago, not 2-3 years ago as I recalled. He said the
labor cost for that would be around $600. When I mentioned that perhaps
using a rebuilt core last time wasn't such a good idea and this time I'd
like to have a new OEM core installed. But because the Honda dealers
charge over $600 for the core, I'd like to get one myself from an online
Honda dealer for $300 and that's what I'd like him to install. He said
he could probably get the same OEM core from his supplier even cheaper,
then looked up his supplier's catalog and mentioned something like $185
or so. But then he would have to charge me $400 for it. When I mentioned
that it was not really cheaper for me, he just replied flippantly: "I
have to make a living, too." He also said that those cores are all new
OEM anyway, because cores are not rebuilt. Funny though, because I seem
to remember that last time he collected the old core to be returned to
the original supplier for exchange. Why, if not for rebuild?

In any case, he also said that he would replace the old core with one
that I brought to him, but I could forget about warranty in that case.
Well, if that is not a discouragement to get my own part, I don't know
what is. Especially since I don't see much warranty on the current core
he installed that is failing after only 5 years. The original core
lasted 13 years. I left him by saying that I wanted to postpone this
core job for the next scheduled maintenence appointment but I am now
seriously considering finding another independent shop. This one is just
not the same since the son and the son-on-low took it over from the old
guy a few years ago. So I better start looking up mechanics around from
checkbook.org list or some such, but boy I hate starting with a new one!

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  #8 (permalink)  
Old 24 Mar 2012, 09:56 pm
jim beam
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Default Re: Part markups by service shops

On 03/24/2012 10:45 AM, cameo wrote:
> On 3/24/2012 5:06 AM, Tegger wrote:
>>
>> For OE parts... Depending on their relationship with the dealer they're
>> buying from, they'll get between 10% and 30% off full-retail. They
>> then add
>> that back when they re-sell to you. That way they stay competitive
>> with the
>> dealers for parts retail prices.

>
> OK, I would say that would be reasonable.
>
>> You may not like paying a markup on parts and supplies, but that's the
>> way
>> it works everywhere, not just in auto repair.
>>
>> If garages could not mark up parts, they'd increase their labor
>> charges to
>> compensate, and you'd be even more unhappy.

>
> Labor charges are high already as they are. My question was prompted by
> the conversation I had with my independent mechanic about the heater
> core's upcoming replacement. As it turned out, the current core was
> installed five years ago, not 2-3 years ago as I recalled. He said the
> labor cost for that would be around $600. When I mentioned that perhaps
> using a rebuilt core last time wasn't such a good idea and this time I'd
> like to have a new OEM core installed. But because the Honda dealers
> charge over $600 for the core, I'd like to get one myself from an online
> Honda dealer for $300 and that's what I'd like him to install. He said
> he could probably get the same OEM core from his supplier even cheaper,
> then looked up his supplier's catalog and mentioned something like $185
> or so. But then he would have to charge me $400 for it. When I mentioned
> that it was not really cheaper for me, he just replied flippantly: "I
> have to make a living, too." He also said that those cores are all new
> OEM anyway, because cores are not rebuilt.


they may be new, but they won't be new o.e.m. - original equipment
manufacturer. there's a bunch of aftermarket manufacturers out there,
and they're the ones that sell cheap.


> Funny though, because I seem
> to remember that last time he collected the old core to be returned to
> the original supplier for exchange. Why, if not for rebuild?


i think he's blowing smoke.


>
> In any case, he also said that he would replace the old core with one
> that I brought to him, but I could forget about warranty in that case.


that's ok. honda parts have warranty if professionally installed. up
to three years, depending on part.


> Well, if that is not a discouragement to get my own part, I don't know
> what is. Especially since I don't see much warranty on the current core
> he installed that is failing after only 5 years. The original core
> lasted 13 years. I left him by saying that I wanted to postpone this
> core job for the next scheduled maintenence appointment but I am now
> seriously considering finding another independent shop. This one is just
> not the same since the son and the son-on-low took it over from the old
> guy a few years ago. So I better start looking up mechanics around from
> checkbook.org list or some such, but boy I hate starting with a new one!


maybe, but it helps to shop around. either look for old guys that have
been around the block, or new kids with something to prove trying to
build a clientele. it's the people that take you for granted that you
need to avoid.


--
nomina rutrum rutrum
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  #9 (permalink)  
Old 25 Mar 2012, 06:42 am
GrumpyOne
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Posts: n/a
Default Re: Part markups by service shops

cameo wrote:
> On 3/23/2012 11:11 PM, Erik wrote:
>
>> Would you go to a restaurant with your own food and ask them to prepare
>> it?

>
> It's not the same thing because mechanics already charge quite a high
> price for their labor which should be more than enough to live on. But
> in any case, I am not so much agains any markup per se. I was just
> wondering if there was some kind of industry standard for such markup.
>



Down in these heeyah pawts... It's 50%

JT


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  #10 (permalink)  
Old 25 Mar 2012, 07:00 am
Elmo P. Shagnasty
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Default Re: Part markups by service shops

In article <jkl150$d1p$1@dont-email.me>, cameo <cameo@unreal.invalid>
wrote:

> My question was prompted by
> the conversation I had with my independent mechanic about the heater
> core's upcoming replacement. As it turned out, the current core was
> installed five years ago, not 2-3 years ago as I recalled. He said the
> labor cost for that would be around $600. When I mentioned that perhaps
> using a rebuilt core last time wasn't such a good idea and this time I'd
> like to have a new OEM core installed. But because the Honda dealers
> charge over $600 for the core, I'd like to get one myself from an online
> Honda dealer for $300 and that's what I'd like him to install. He said
> he could probably get the same OEM core from his supplier even cheaper,
> then looked up his supplier's catalog and mentioned something like $185
> or so. But then he would have to charge me $400 for it. When I mentioned
> that it was not really cheaper for me, he just replied flippantly: "I
> have to make a living, too." He also said that those cores are all new
> OEM anyway, because cores are not rebuilt. Funny though, because I seem
> to remember that last time he collected the old core to be returned to
> the original supplier for exchange. Why, if not for rebuild?


Smoke, smoke, smoke. He's blowing it.

My guy will install what I give him, but we both know that if what I
give him is bad, I'm on hook for the labor.

My guy will happily use OEM parts if I request, which I generally do.
HE wouldn't pay the whole $600 for the part; he'd get it for less, from
tthe same dealer, then charge me the $600 for the part. Then he'd
install it, then if something went wrong it'd be all on him.

I consider that a fair deal. I get his labor rates plus the convenience
of using him instead of a far-away dealer, plus I get to keep a local
small business going. I consider it a fair deal.

I honestly believe it's the cheapest man who spends the most. I
wouldn't chase after that part for $300 delivered to my door and then
hand it to my local guy.

Of course, I also let the local mower shop--who's been around for
umpty-dozen years, and who is a professional dealer in Toro, Snapper,
Echo, and a few other brands--take care of my lawnmower every winter.
Why do that, when I could change the oil and spark plug and sharpen the
blade myself? One, I don't really like to do those things anymore--but
more important is reason number 2, which I call the "local neighborhood
tax". If I don't support these guys, they will go out of business and
suddenly I won't *have* a local mower shop, or a local hardware store,
or whatever, to go to. These places are invaluable when you need them.

For example, I just got a new Echo Power Attachment System kit w/trimmer
and blower, with the idea of getting a pole pruner at the end of the
season. I could have gotten it online, or at Home Depot, but the local
mower shop is a pro dealer--to the point of having on staff a former
Echo service trainer. They know what they're doing, they sell only good
stuff that's known to work and not to cause problems, and they service
what they sell. They also go the extra mile to unbox and set up and
test everything. Same price as anywhere else for this kit, but I got
more--plus I got peace of mind.

A couple of weeks ago I passed over the $50 bag of Scott's Step 1
fertilizer at Costco, and instead went to my local hardware store and
spent $66 for the same bag. My local hardware store has been around
forever, they provide actual service, and they have 95% of what I want.
The very idea of stepping into a Home Depot and wandering around hoping
to find something resembling what I need is anathema to me.

Besides, since the local hardware store is a small but official Scotts
dealer, they have a couple of rebates happening--one from Scotts, one
from Ace Hardware. I'll more than make up any Costco savings, just from
the rebates. These little guys, they offer things that the big
warehouse guys don't.

Likewise, I discovered a local auto service shop two blocks away from
me, a guy who's honest and who has done demonstrably good work. He's
not the cheapest, but he's no more expensive than the dealer. And he'll
tell me if it's something he can't do because it requires something
special only the dealer is likely to have. Fantastic.

Oh--and same for this guy and his oil changes. Yeah, he's a tad more
expensive--but it's subsidized by rebates from his filter vendor, and
that takes it down to LESS than what Iffy Lube charges to ruin your
engine after selling you an air filter you didn't need.
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