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Jay Huh

Parts markup?

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Because of the way I started my business, I have never really marked up my parts much, if at all. Right now I am just doing a flat 40% mark up (multiplying by 1.4). It used to be at 1.3 a few months ago. I blow everyone out the water with prices though.

 

Because of that, my margins are low- always hovering around 50%. I want to get it consistently 60% and higher.

 

I am thinking about implementing a parts matrix I saw on R+W. Using their numbers, I think my customers will have sticker shock! But I just changed my system over. Looks like they want me to mark up over 300% for lower cost items but for the most part marking up 225% range (multiply by 2.25). Huge difference. In the past, I've been careful to not charge more than what the auto part store charged in store retail.

 

Thoughts on parts markup? Should I continue with implementing the parts matrix?

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Edited by mmotley

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