Auto repair shop mark-ups

5511 Views 41 Replies 23 Participants Last post by fishnhuntguy, Jan 31, 2015

bertram31

Discussion Starter · Jan 28, 2015

Have a shop I've been doing business with over 5 years and spent in excess of $10,000. Had a water pump and fan clutch replaced. They buy their parts from O'Riely. Parts prices looked high so I used the parts # on the invoice to check. On the water pump I could buy it for 49.99 They charged me 100.00. Ont the fan clutch I could buy it for 199.99 they charged me 472.00. Seems pretty high Does anyone know what the industry mark-ups are. This was just for the parts.
Thanks

1 - 20 of 42 Posts

Hook

· #2 · Jan 28, 2015

To me that sounds like a national chain you are going to!
A couple of years ago I got burned by a national repair shop. I needed a coil for # 5 of a v 8 Ford. The charges were $40.00 for diagnostic , $99.99 for coil, $92.54 Labor, shop supplies $11.55 then state and county tax = total of $263.13
Yesterday advance diagnostic for free, bough coil from them for#6 at $65.00 , had a guy installed it [ took 15 min] and went back to advance took the check engine light off for free. My total cost $100.00
Find someone [independent] that does not have a big overhead for pretty signs.
My 2$$$$$$$
$263.13 vs $105.00 you do the math and everyone was happy.

Hopin4aboat

· #3 · Jan 28, 2015

And FYI the prices you found when you looked them up are even higher than what they paid with a business account, in some cases much higher.

BananaTom

· #4 · Jan 28, 2015

My shop tells me to go purchase the parts, they just charge labor, if I have time to do so.

They tell me it is cheaper for me to go to the parts store and purchase the part myself and bring it to them, verses the repair shop having it delivered by that same store.

I do not understand why, but that is how it is?

Now I am not sure about the price increase / markup you are speaking of. But my shop will give me the price they must charge me, and give me the option.

Breeze

· #5 · Jan 28, 2015 (Edited)

Hopin4aboat said:
And FYI the prices you found when you looked them up are even higher than what they paid with a business account, in some cases much higher.

That pretty much depends on the volume you purchase. I have a business account with O'Riellys and I pay pretty much the same price as anyone else on 99% of the stuff I get there. The only thing the account does is save me sales tax. Same deal I get at Pensacola Harley, Pensacola Motorsports and Cycleworld. Same price as anyone else just save the tax.

As far as mark up goes, that is pretty much up to the business.

bertram31

Discussion Starter · #6 · Jan 28, 2015

It's a locally owned shop and I like the people. Don't mind them making a profit but it still looks excessive to me. Just want to be treated fairly.

southern yakker

· #7 · Jan 28, 2015

Hook said:
To me that sounds like a national chain you are going to!
A couple of years ago I got burned by a national repair shop. I needed a coil for # 5 of a v 8 Ford. The charges were $40.00 for diagnostic , $99.99 for coil, $92.54 Labor, shop supplies $11.55 then state and county tax = total of $263.13
Yesterday advance diagnostic for free, bough coil from them for#6 at $65.00 , had a guy installed it [ took 15 min] and went back to advance took the check engine light off for free. My total cost $100.00
Find someone [independent] that does not have a big overhead for pretty signs.
My 2$$$$$$$
$263.13 vs $105.00 you do the math and everyone was happy.

i replaced my own coil on my tundra after seeing what places were charging. Autozones had the coil for $80 but I found one on amazon for $17 with a lifetime warranty. It took less than 5 minutes to replace. If you can replace it yourself it saves a ton of money. This part (atleast on my truck) could have been replaced by anybody. One bolt and a clip Then replace.

dockmaster

· #8 · Jan 28, 2015

http://www.rockauto.com/

Good place to check prices. Very fast shipping.

Napa had good prices for business (wholesale) accounts also. If you notice you receipt it always says the account is Smith Trucking or something like that and you get a good price break.
As always, it pays to shop.......getting screwed is one thing, but at least get kissed first.

Reactions: 1

johnsonbeachbum

· #9 · Jan 28, 2015

bertram31 said:
Have a shop I've been doing business with over 5 years and spent in excess of $10,000. Had a water pump and fan clutch replaced. They buy their parts from O'Riely. Parts prices looked high so I used the parts # on the invoice to check. On the water pump I could buy it for 49.99 They charged me 100.00. Ont the fan clutch I could buy it for 199.99 they charged me 472.00. Seems pretty high Does anyone know what the industry mark-ups are. This was just for the parts.
Thanks

What was their labor rate?
Maybe they add lots of mark up because they lure you in with low labor rates.
And thus would be a wash if you had their competition do the work?

johnsonbeachbum

· #10 · Jan 28, 2015

BananaTom said:
My shop tells me to go purchase the parts, they just charge labor, if I have time to do so.

They tell me it is cheaper for me to go to the parts store and purchase the part myself and bring it to them, verses the repair shop having it delivered by that same store.

I do not understand why, but that is how it is?

Now I am not sure about the price increase / markup you are speaking of. But my shop will give me the price they must charge me, and give me the option.

My shop does that too, or is willing.
If your willing to forgo any warranty on the parts installed.

chad403

· #11 · Jan 28, 2015

Id say its more of a bell shaped curve. 15-25% on 1 off parts less then 500 bucks and 10% on parts over 500 would be fair. He has to account for shipping, travel, and his time on the road.

feelin' wright

· #12 · Jan 28, 2015

When I worked for a regional chain a decade ago the parts markup was on a chart we had. 100% on items less than 40.00/ 80% 40-100 60%/ on 100-200 etc etc.

Definitely a rip off.

speckledcroaker

· #13 · Jan 28, 2015

Wirelessly posted

I buy my own parts and do my own work including full rebuilds saves a lot of money and i know it's done right.

johnsonbeachbum

· #14 · Jan 28, 2015

speckledcroaker said:
Wirelessly posted

I buy my own parts and do my own work including full rebuilds saves a lot of money and i know it's done right.

Yea me too but when things go bonkers on a modern vehicle crammed full of sensors and electronic do dads, then what do you do?

bertram31

Discussion Starter · #15 · Jan 28, 2015

Thanks for the replies. The shop refunded part of the parts charge but the damage is done, I can do some basic repairs but I was down to 1 vehicle and had to get something going. Any recomedations on a good shop north of 9 mile Rdd. appreciated.

AndyS

· #16 · Jan 28, 2015

Don't know if this is a true story or not ... but heard once about a popular auto repair shop in a small town that charged only labor for repairs & "cost" for parts.

One year they underwent a full tax audit by the State & had to pay extra taxes on their "profits" because the State revenue office assumed a standard markup of 30% a repair shop was supposed to charge on parts & assumed the shop was pocketing that profit on parts off-the-books. This supposedly happened in Mississippi about 30 years ago.

AndyS

· #17 · Jan 28, 2015 (Edited)

bertram31 said:
Have a shop I've been doing business with over 5 years and spent in excess of $10,000. Had a water pump and fan clutch replaced. They buy their parts from O'Riely. Parts prices looked high so I used the parts # on the invoice to check. On the water pump I could buy it for 49.99 They charged me 100.00. Ont the fan clutch I could buy it for 199.99 they charged me 472.00. Seems pretty high Does anyone know what the industry mark-ups are. This was just for the parts.
Thanks

As to the OP .... personally, I think that's an outrageous markup. Just out of curiosity, what are they getting per hour on labor?

You should "out" the name of the shop on here so others may be forewarned.

Q. Did you receive an estimate detailing the cost of parts & labor separately prior to okaying the work? If so, then that's your bad.

devinsdad

· #18 · Jan 28, 2015

I went to a national tire chain last week to ask about putting new brake pads on my rear brakes. I suggested I would buy the pads if they would just remove and replace them. Said they couldn't use customer parts and because my car calls for ceramic brake pads, it would be no less than $70 just for the pads.

Looked them up later at Oreilly Auto Parts and they were only $39. I bought them and took the car to Potters and they gladly did it for me.

buckfever

· #19 · Jan 28, 2015

I work for a dealership, generally our parts are marked up 35%.

MikeH

· #20 · Jan 28, 2015

Shops don't have to charge tax on labor only, so if you buy your own parts and being them in, you save tax.

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