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Shop supplies,how much on what?


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What can you recomend as far as shop suplies.What % and on labor or on total ticket ? I do try to charge for small things like hose clamps and fuses and 1 can of brake kleen w,/ a brake job right now I charge 6.2% of total ticket up to $29 but I m thinking about making that on labor only to be competive and may be fair what do you think?

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I charge 8.01% on total ticket with a cap of $39.97. I have been doing this for over 1-1/2 and never had anyone complain about it. I have a list plainly displayed on the wall of what it covers. Anything that you would use more than once (brake cleaner, grease, ect) is what is covered under the shop supplies. Anything that is a one time thing (clamps, bulbs, ect) I charge on the ticket itself as a part.

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What can you recomend as far as shop suplies.What % and on labor or on total ticket ? I do try to charge for small things like hose clamps and fuses and 1 can of brake kleen w,/ a brake job right now I charge 6.2% of total ticket up to $29 but I m thinking about making that on labor only to be competive and may be fair what do you think?

 

Just a word of caution: I know shops around the country charge supply charges and many business seminars promote this, but depending on local and state laws (AND, I am not a lawyer), any charge on the invoice has to backed up by a formula used to determine the charge. In other words, in New York you can charge a supply charge, hazmat charge, etc, but you need to justify how you arrived at that number. A few shop owners I know got fined because they were charging an arbitrary percentage.

 

I called the NY DMV, and according to them, you need to show how much in “supplies” you use per job, how much you pay for hazmat. You can recoup your money, but you need to justify any charges on the invoice.

 

I am just bringing this up so shops can be carful and find out local laws.

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I charge 8.01% on total ticket with a cap of $39.97. I have been doing this for over 1-1/2 and never had anyone complain about it. I have a list plainly displayed on the wall of what it covers. Anything that you would use more than once (brake cleaner, grease, ect) is what is covered under the shop supplies. Anything that is a one time thing (clamps, bulbs, ect) I charge on the ticket itself as a part.

 

I like your conditions or differentiation on what is a shop supply. I too have never had a customer complain, but how many would and how many would just be quiet and mad? As for the list palinly displayed that can play many ways. Most people do not read signs regardless. Then there are those who woudl read it and go, "Well that seems reasonable, you didn'g use brake grease on my oil change but you did use chassis grease and shop towles, and half a jug of washer solvent." And then there are those who wouldn't have known, noticed or cared until they saw that you charge shop supplies.

 

And then there are so-called gurus who would tell you that it's a sin to charge shop supplies. It just shows that you are a bad manager because that should be figured into yoru labor rate and parts mark-up. And then other so-called gurus say you should absolutely charge shop supplies with a 10% minimum and mo upper limit. So no one really knows what is right for yoru shop, except for you, based on the feedback from your customers.

 

Regardless I either charge way too much by simply charging shop supplies or I don't charge enough, still can't figure out which.

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I like your conditions or differentiation on what is a shop supply. I too have never had a customer complain, but how many would and how many would just be quiet and mad? As for the list palinly displayed that can play many ways. Most people do not read signs regardless. Then there are those who woudl read it and go, "Well that seems reasonable, you didn'g use brake grease on my oil change but you did use chassis grease and shop towles, and half a jug of washer solvent." And then there are those who wouldn't have known, noticed or cared until they saw that you charge shop supplies.

 

And then there are so-called gurus who would tell you that it's a sin to charge shop supplies. It just shows that you are a bad manager because that should be figured into yoru labor rate and parts mark-up. And then other so-called gurus say you should absolutely charge shop supplies with a 10% minimum and mo upper limit. So no one really knows what is right for yoru shop, except for you, based on the feedback from your customers.

 

Regardless I either charge way too much by simply charging shop supplies or I don't charge enough, still can't figure out which.

 

Everyone has to make the final decision with respect to any business issue. As long as you arrive to the same conclusion, that is to be profitable and successful, you can take whatever path you deem is the correct one. Of course, that path needs to be ethical and honest.

 

No one has the right to tell you or any other business person, what is right for your business. However, the way I see it, if you always do what is the best interest of the customer for the long term, you really can’t go wrong.

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