repair shops markup parts prices ?

[humboldtrunner]

hello all, i'd like to get as many comments as possible on this subject, how much is a fair amount for repair shops to markup the prices on parts on a repair ? Is their any general guideline for this or is it just as much a they can get away with ? I'm having a job done now on m y '98 limited and when i was getting an estimate I kept insisting on using only OEM parts and the shop owner kept saying some other brands are 'upgraded' and are better. in my opinion the only thing better with aftermarket parts is they are much cheaper for him to buy that OEM parts. Do I have any recourse if when I get the bill the parts he used are marked up so much they are more expensive than OEM parts ?:juggle::gun4::gun4: I hope I get a lot of comments on this . there has to be some kind limits on what is fair and what isn't.

 

[yotantexas]

25% was the standard mark up I saw when I was in the parts business many years ago.

 

[4runner55]

I have worked as a Service/Parts/Body shop Mgr for dealers as well as independent repair shops. A lot of independent shop owners will get 10 to 25 percent off OEM and aftermarket parts and mark them up 100 percent of invoice. I suggest you find a good Toyota independent shop in you're area.

 

[amalik]

To avoid this scenario, I personally love those small family owned shops where they dont give a shit what part you bring, they just make you sign a waiver that says they wont warranty the part. I live a few min away from one of these type of small family shops and i love dealing with them everytime I need something done.

Sent from my LGMS428 using Tapatalk

 

[philsey]

hello all, i'd like to get as many comments as possible on this subject, how much is a fair amount for repair shops to markup the prices on parts on a repair ? Is their any general guideline for this or is it just as much a they can get away with ? I'm having a job done now on m y '98 limited and when i was getting an estimate I kept insisting on using only OEM parts and the shop owner kept saying some other brands are 'upgraded' and are better. in my opinion the only thing better with aftermarket parts is they are much cheaper for him to buy that OEM parts. Do I have any recourse if when I get the bill the parts he used are marked up so much they are more expensive than OEM parts ?:juggle::gun4::gun4: I hope I get a lot of comments on this . there has to be some kind limits on what is fair and what isn't.

"Fair" is irrelevant... because it's totally subjective... "fair" to you is not fair to someone else. What any business determines to be his "markup" is what it is. My suggestion to you is to find a shop that does quality work, has a good rep, and pay the price.

If you want OEM and are willing to pay more, that's what you should get. If this shop won't, then move on. However, you should also expect to pay more, because so did he. He HAS TO make a profit. You forget that him buying from Toyota puts another cost layer into obtaining your parts.

 

[DavidR1]

I would find another shop. Just easier to move along than argue.

Then how do you even know he used the OEM parts that he charged you for? Some things are easy to check, others you would have no idea.

There is also another reason for him wanting to use aftermarket. Its easier to get. These parts stores deliver to most shops, at least that is how it works in my area.

 

[Jetboy]

I usually do my own servicing. But a good friends shop uses my personal philosophy of how it should be done. Parts are passed on with no markup. They're charging you for labor and overhead built onto the shop time. You bring the parts. Great. He provides the parts. Great. That way it doesn't matter. He prefers oem parts if possible because they always fit, they fit right, and they send the correct parts for the vehicle every time. No wasted time. Of course there's exceptions for known bad oem stuff.

He's always booked...

 

[TechWrench]

Each shop will have it's own policy on parts pricing. In many cases, the shop will charge the customer the 'list' price on the part, while they pay a percentage of that figure. How much 'discount' the shop gets from the 'list' price can vary, depending on the whole sale outlet, how much business they do with the wholesaler, and what type of deal they can negotiate with them. Also, the shop may have to pay extra delivery charges for a part, if they request special or expedited delivery, and that may be added to the price of the parts.

 

[ZiaMan]

If you absolutely want OEM parts, you might as well go to the dealer. Anything you would save from an independent is partly because of their part store parts being cheaper. I bet the difference isn't more than $100-200.

*assuming your dealership is ok

 

[SaulG]

"You don't bring a steak to steak house. There are liability laws in California which would kill the small shop that is doing it by the book. After you pay your overhead and technicians and workman comp insurance, and this permit and that permit you have about $ 22.00 remaining. That is why we charge a fair markup for the part..."


"You are the only answer that understands what it takes to stay in business and pay overhead. – Moab Aug 28 '17 at 15:39"

From an industry internet site.. Yeah we all want internet pricing but can you get the 'net to install your schit ?? Why are there twenty different prices for O.E.M. than the local dealer??
And is that O.E.M. part reeeeaaallly O.E.M. or Chinese azzhat counterfeit??

 

[2016 4Runner SR5]

I mark up 40% unless it's something very expensive, then that's a case by case basis. Everyone has to make money.

 

[RedSled]

I am going to jump in here only because it kills me me. If someone wanted you to do work for them, and this applies to all trades, but they want you to do it for half or less, would you be all over it? **** no you wouldn't. This is what i do, i call the shop that i want to do the work, i say how much installed, if i do not like the price,i move on. Unless you are going to install, or do the work yourself, suck it up Francis.

 

[humboldtrunner]

thanks for all the opinions even if some of them were a little disrespectful. i don't see anything wrong with asking for some general info on this subject. I was under the impression that toyota OEM parts were legendary for their high quality, maybe I'm wrong. Maybe I'm also wrong to think that some repair shops are honest, if so they are few and far between.

 

[philsey]

I don't mean this to be disrespectful, but judging from your posts, you'll take it as such:

You are being naive about the workings of business, and what it takes to make one run profitably enough to stay in business.

The shop that provides your "fair" prices for parts will either charge an "unfair" price for labor or go out of business.

eace:

 

[jonnys]

thanks for all the opinions even if some of them were a little disrespectful.

lol wut

These are honest answers. Blunt, but honest. No one is being disrespectful here.

Most independent shops are honest and need your business, and you can determine this by their Google and Yelp ratings. They are understanding and can work with you on prices if you are kind. Kindness goes a real long way.

If you're absolutely concerned about OEM parts, the dealer is your best bet. They mark up parts 25% or more depending on the part, and then mark up the labor. But you'll be assured of OEM and Toyota-certified mechanic work. They also do not haggle because they do not need your business.

Let us know if you have more questions.

 

[jordanrb81]

the shop I use and have been using since 2012 charges $85.00 an hour for labor, I can order the parts online and ship them straight to his shop if I want to. there is a book that lists average time for a job. whether it takes them that long or not is another thing but it's a general guideline. the reason this is relevant is after that it's just math. I'll give an example. I chatted with him about doing a cat back exhaust and a COI I have been going back and forth about brand, performance, sound etc. he said just give him a heads up and have whatever I decide shipped to his shop, he is going to charge me 3 hours for the exhaust and 2 hours for the COI so $425.00 in labor, the parts cost what they cost but that's up to me. if I want him to order the parts he will, and has done so for me in the past, I have never been shocked by any of the prices on the invoices.

In the end, and this has been covered above choosing a shop you can trust and a mechanic that you can develop a relationship with is key. I refer TONS of people to my mechanic and they all report back glowing reviews, in my mind when you give a referral it's like giving someone your word, you are vouching for that person. I wouldn't refer business to a mechanic I didn't trust, and I wouldn't do business with someone I didn't feel comfortable referring.

 

[Jaydub514]

The funniest part about people having the mentality like the OP has is that this mindset seems to only happen when dealing within the automotive industry.

Do you go to a restaurant and ask them how much they are marking up that lobster at “market price” on a Friday night? Do you argue with the chef about labor costs that it took to prepare it?

Automotive is no different than any other industry that needs to turn a profit to continue to be in business like others have stated. No one is being disrespectful, just trying to help you gain some perspective on what you might be missing in your thought process.

 

[jordanrb81]

The funniest part about people having the mentality like the OP has is that this mindset seems to only happen when dealing within the automotive industry.

Do you go to a restaurant and ask them how much they are marking up that lobster at “market price” on a Friday night? Do you argue with the chef about labor costs that it took to prepare it?

Automotive is no different than any other industry that needs to turn a profit to continue to be in business like others have stated. No one is being disrespectful, just trying to help you gain some perspective on what you might be missing in your thought process.

Actually I do sort of do that. For example (the one you used) I know that Lobster is $4.99lb here in New Hampshire and so I know when some restaurant downtown is selling twin 1 1/2lb lobsters for $60.00 that they only expect tourist to pay that. In Fact, transparency is taking over all industries. People, at least in my experience don't mind paying for goods and services, but they want to know what they're paying for and what they're getting. so if you run an automotive shop at this point in the world you know that any customer with a cell phone can discover what a wholesale part costs. Why not just disclose that your standard mark up is 10, 15 or 20% or whatever your area market allows and is reasonable. I am not suggesting someone shouldn't pay for a 20% mark up, but I don't see why someone who is running a legitimate business would be interested in hiding that fact. Just like as I mentioned above I know my guy charges $85.00/h he also has to pay rent, utilities, insurance, shop supplies etc. so I am very aware that he doesn't actually take home $85.00/hr and that overhead charges are baked into the hourly rate so that he can make a living and feed his family. which is basically common sense...right?

 

[Kashoggio]

Do you go to Best Buy and expect them to post their mark up on the lg flat screen or is a clothing store going to let you know what their mark up on a pair of jeans is ( btw it’s high). A business is just that, a business. If you post how much money you are making on a product or service , you really think a consumer/customer will not try to get the lowest price no matter if it’s fair or not.