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Great Tire Deal

I never charge more than dealer list. Same goes with aftermarket parts. It's the whole perception thing. I mean really, why should anyone go to an independent when they are charging more than the dealer? The only advantage we offer in most cases over the dealer is price. it's not worth it to me to take a chance losing a customer over a few percentage points. Dealer parts are only about 15-20 percent of my parts sales. It's just not worth it to me.

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I never charge more than dealer list. Same goes with aftermarket parts. It's the whole perception thing. I mean really, why should anyone go to an independent when they are charging more than the dealer? The only advantage we offer in most cases over the dealer is price. it's not worth it to me to take a chance losing a customer over a few percentage points. Dealer parts are only about 15-20 percent of my parts sales. It's just not worth it to me.

Most dealers charge more than the parts list price when providing it to a customer in the shop.

 

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Most dealers charge more than the parts list price when providing it to a customer in the shop.

 

Sent from my SM-N910V using Tapatalk

A lot of people are not aware of this, but it's true. Combine that with a dealers 'labor matrix' and it's easy to still come in cheaper than the dealer while hitting your GP% benchmarks

 

To answer the OP question, I'll usually adjust case by case, but never lower than 30. If I'm having to run across town to pick it up, etc, etc, I'll approach 50%

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First of all to answer the question -- Take cost Times X 1.7 .

Now - For the ones saying do not charge more then the dealer / Get your head out of the sand and do research , as stated above dealers charge more when run thru the shop the over counter.

Saying all we Independent have to offer is price [ Maybe that is your shop ] - My shop sells value / on site ownership for issues , Courtesy car's , Free Towing , 3Yr / 36,000 Miles warranty , pictures before and after repair , Audio when needed etc.

If We keep downing the industry , and not changing belief windows we will always work for nothing.

 

Inclosing not trying to sound rude - I heard the same thing at a seminar two weeks ago form a rep selling a tire Franchise program , that you will die if you do not hold you price below dealer. ? our the dealers dying charging more for tires then the quick franchise / statistics they grow every year in tire installs and sales . [ stay value and committed to your client they will pay more!.

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Saying all we Independent have to offer is price [ Maybe that is your shop ] - My shop sells value / on site ownership for issues , Courtesy car's , Free Towing , 3Yr / 36,000 Miles warranty , pictures before and after repair , Audio when needed etc.

If We keep downing the industry , and not changing belief windows we will always work for nothing.

^^^ This

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  • 2 weeks later...

We have the same markup and margin no matter where the parts come from. Do you tell your customers where their other parts come from? Then why should you tell them stuff is coming from the dealer. They are just another supplier. Why should you make less because the car needs special or rare parts or fluids. Also stop using the dealer for domestic parts. Try Universal Lift, Rowerdink, or for Chrysler try to find a wholesale dealer with a parts warehouse like Milosch in Michigan.

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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
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