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Parts Markup?!?

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Hi guys I am new to the forum. I thought this would be a great place to talk to other shop owners about questions we have. Sometimes Alldata doesnt have everything you need and Google and Youtube actually come in handy lol... but hopefully in the future can have some other great minds help us.

My boyfriend & I started our shop in January. I asked a good friend of mine (she does bookkeeping & accounting) how people markup on parts. She said 47%.


When I call Napa, O'Reillys etc I ask for list price, but then list isn't what the "average Joe" can walk in and get it for. I cant go off of average joe price because we wouldn't still be in business. I cant sell it at manufacturer list either because that would mean taking an arm and a leg...


I meet in the middle, on small stuff markup more cause not a lot of room to move, and big stuff markup less. And dealer I just sell it at what dealer would sell it at, because I don't want someone going into our place or the dealership stating I sold it at less or more than dealer or vice versa. And then aftermarket parts I sell lower than MSRP. So if we do 20% markup we lose money, 45% on small stuff, 30% on bigger items? What does everyone mark their parts up? And just an FYI our labor rate is competitive from the rates other shops charge we are much lower at $80.00/hr whereas others charge $100.


Can someone please explain to me auto parts markup or how they markup or how I am doing it is okay for an auto shop?


Amanda S


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