| Author | Message | ||
| Rob Norgren (Robsedona)
Registered Member Username: Robsedona Post Number: 26 Registered: 11-2007 Posted From: 75.208.72.172 Rating: N/A |
"I do not know what shops you have been visiting, but I have never heard of a shop only changing a 10-20% markup on parts. 50% is generally considered minimum and 100% is not unusual. 200% is extremely unusual though." I would like to know how you guys feel? I think if a shop gets Wholesale and marks up the 50% or even 100% thats fine if they are getting that discount from there supply! But if the shop gets the parts from the same source and price I can get them (retail) then 10 or 20% is the going rate or should be for the couple of phone calls they make! 1 Let me know how you feel? 2 Am I off base here? 3 I know I'm not made of money are you? | ||
| Paso One (Paso_1)
Registered Member Username: Paso_1 Post Number: 105 Registered: 11-2004 Posted From: 142.165.246.239 Rating: N/A |
Well Rob There is no Straight answer for this question. Having been in the parts business there are many varaibles some you may not have even thought of. Some catagories "parts" fall into determines the price. ie: Captured Parts vs non captured parts, If for example I manufacture the part it is obviously captured they usually set the retail price, then distributor price, then wholesaler price, In the automotive trade the outlet/ retailer may only get a 25 % margin on a part. But some take there "Landed cost" and mark it up from there. If the outlet has a franchise / OEM arrangement then they can literly take a "keystone" mark up which is double his cost. If the Part is available and can be purchased at the corner parts store the mark up is likly no greater than the 25% above. MCI likly sets the price at 5x cost 3xcost 2x cost on any given part they manufacture themselves. | ||
| Luvrbus (Luvrbus)
Registered Member Username: Luvrbus Post Number: 224 Registered: 8-2006 Posted From: 74.33.54.133 Rating: N/A |
Rob, I have always been lucky when repairs to my bus were needed.Repairs most of the time have been made by people in Oregon and the best I can figure out they buy wholesale and mark the list price up 10%.Like Paso said you have a captured market on some things (like the 55.00 washer)but 200% markup I think is out of line.I buy my tires in Oregon they cost about 300.00 I cut one in New Mexico the tire shop charged me 511.00 for the same tire and there was nothing I could do about it.The point I am trying to make is you are going to get ripped by someone on the road its sad but it happens.But this guy is way out of line. the dropbox you got from me i removed and replaced by myself in less than 10hrs and you know how old I am. And if Richard thinks a big markup is ok he should not feel bad towards AZ Transmission that got to him. Have Merry Christmas Rob (Message edited by luvrbus on December 22, 2007) | ||
| RJ Long (Rjlong)
Registered Member Username: Rjlong Post Number: 1356 Registered: 12-2000 Posted From: 67.181.166.160 Rating: N/A |
Rob - Paso is right on. The answer to your question is "it depends." Generally speaking, the larger the ticket item, the less percentage mark-up. A couple of examples: 1. (This goes back to early 1970's) A Corvair valve cover gasket retailed for a buck. Joe's repair shop purchased them from the Chevy dealer for fifty cents. The Chevy dealer bought them from GM Parts for a quarter. Cost GM less than a penny to stamp them out. 2. If you go into Leslie's Pool Supply and buy a replacement debris bag for your Legend pool sweep, it's going to cost you $38.95. Leslie's buys them from the wholesale house for $19.18. So the retail on this small ticket item is basically double the retail shop's cost. 3. If you go into Leslie's and buy a new pool filter pump assembly, one that's not "on sale", you'll pay $539.99 for a Pentair 3/4hp WhisperFlo. Leslie's buys them from the wholesale house for $325.40. As you can see, this is not half the retail, it's only about 60%. 4. If the part you're looking for is now NLA (No Longer Available), then it's a whole different ballgame - it's whatever the market will bear. I've seen NOS (New Old Stock) rear wheel bearings for Corvair vans and pickups sell for over $300 nowadays - they were about $60 or so back in the '70s. Just a sampling of what happens out there. Don't forget that the owner also has to meet his overhead, which includes labor, utilities, rent, worker's comp insurance (a big cost, actually), regular liability insurance, taxes, and so forth. Hopefully, after all that, there's a little left over so that he can put food on the table at home and keep a roof over his family's head. It's not easy earning a living as the owner of a labor-intensive service business. . . I'm not siding with the shop owner here, just sharing general info. FWIW & HTH. . .  | ||
| Brian Elfert (Belfert)
Registered Member Username: Belfert Post Number: 67 Registered: 7-2006 Posted From: 209.98.146.235 Rating: N/A |
For background, my Dina was sold in the USA by MCI so MCI supplies the parts. The local bus garage basically charges MCI's list prices on whatever they get from MCI. I'm sure they get a discount from MCI since they work on MCIs all day long. I don't get a discount from MCI so I am not complaining. I have no idea what they charge as a markup on parts they don't get from MCI like standard driveline parts. | ||
| Jim Wilke (Jim Bob) (Pd41044039)
Registered Member Username: Pd41044039 Post Number: 230 Registered: 2-2001 Posted From: 208.6.60.4 Rating: N/A |
My wife has a business that makes expensive gift items. ($100-300) The retail stores that buy these items will not carry them unless they can double their money OR GREATER! (As the manufacturer, we make about 25%!) I work for a national company that makes engine driven equipment. They expect to make almost 50% gross profit (100% markup) on things that cost $6,000 to $60,000. But I can assure you there are LOTS of overhead costs. It's the taxman that ticks me off. 100% profit on things they put absolutely no work or risk into! | ||
| marvin pack (Gomer)
Registered Member Username: Gomer Post Number: 165 Registered: 3-2007 Posted From: 76.4.148.149 Rating: N/A |
Jim Bob that is exactly why I left wv and moved to Florida and went to work for the county school system. The taxed basicaly put me out of business let alone comp and insurance prices. Now I am getting ready to retire and will draw a pension instead of having to work for it LOL. I still do the same type of work that I did I just get paid without all the taxes taken out. I made a LOT of money but after taxes I OWED them instead of keeping it for my ex-wife LOL Gomer |