Shop supply fees

[TOMSAWYERAUTO]

I'm just curious what other shop owners charge for shop supply fees. In the past, I've heard various responses; some charge a percentage of the total bill (parts and labor), some charge just a percentage of labor, others charge a flat fee.

We've tried a low flat fee in the past but that doesn't prove to even make a dent towards covering the cost of shop supplies. We switched to a small percentage and found that we netted about the same because the quantity of large $ tickets balanced out with the quantity of low $ tickets. 

Looking to make another change that will prove worthwhile but wanted to get some feedback first. We're in the Eastern PA area. Thanks so much.

 

[bluefishbob]

We find 6% of parts and labor covers our shop supplies with a decent margin built in.  (that pesky word profit)  It does cap around $40.00   Also We do charge for items that can be inventoried, like paint, fasteners, wire ties and the such.

[DHP]

We charge 6% of parts & 4% of labor with a $45.00 cap. We do charge brake clean, clamps, nuts & bolts,etc. as well. Even with that it seems we give away quite a bit. To often techs grab things from the shelf & fail to communicate it. 

[Jim Masella]

We charge 6% on parts & labor with a cap of $28.71.  We have a small list of items we do not charge ss on such as lof’s, bulb replacement, air filters because we do not want to draw attention to ss fees on petty items.  Most of our competitors charge 8% with one I now of charging 12%. (Wow).  I’ve heard people say “nobody ever complains about it” but those are the people that probably just never came back and you never knew it.

 

[stvstbsvc]

If I remember correctly - we are at 6% of Labor with a cap of $38.93.  It is a money maker for us as we charge it on EVERY JOB and still charge for brakleen, battery terminal lugs, throttle body cleaner and ALL FLUIDS.  I suggest you grab a couple of of typical invoices and play with formulas to suit your business and your profit goals. 

[stvstbsvc]

SORRY - I stand corrected.  Checked my invoicing software this morning and the formula is 9% of the LABOR up to $41.10 and includes tire repairs and oil changes.  It is automatic on every estimate.  I don't worry about quality or quantity of Shop Supplies anymore.  I had enough of THOSE BOSSES when I was a Tech.  😀