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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.

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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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  • Have you checked out Joe's Latest Blog?

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      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
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