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Just wondering how many of you all sub out jobs vs recommending other shops and if you do sub it out how do you markup the service?

For example, we don't do transmission work at our shop and have a trusted shop that we refer all of the work to.  The only time we sub the work out is for our fleet account and we just do a flat $ markup which is decent in my opinion.  We do send that shop a lot of business but not sure I want the hassle of being the inbetween person and potentionally impacting my shop reputation based on someone else's work (no matter how much I research and trust a shop).  At the same time by not subbing out I feel like I am leaving money on the table.  Currently we refer most transmission, intensive electrical and exhaust work out to local specialty shops.

A shop owner friend of mine on the other hand handles everything car related for his customers.  From windshields to wheel repairs, electrical etc.  His philosophy is he wants to be the only shop his customer needs to know about for anything car related even if he makes no markup (not sure how often that happens) and he is a very successful shop making over $1mil a year.  I get the concept but for me to be involved I want to make some money on it and if its something that requires diagnostic not sure I would want to be the middle man not knowing a price to tell the customer from the get go.  For some of these situations I know he just wings it.  (For example he had a customer with an electrical issue and just told them it would be $800 not knowing what was wrong.  He took it to an electrical shop and the problem was fixed for $200...good profit for him.). He also subs out motor jobs and pays $500 for the install but I know of some instances where he had comebacks and it ended up costing him.  

Curious how you all handle sub work, how you mark it up and if the risk is worth the reward?

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