Customer Supplied Parts

[5 Star Auto Spa]

Will you install parts for a customer that supplies the parts? If you do, do you mark up your labor to compensate for the lost revenue from parts? If you do mark up your labor, how much do you mark it up? We currently just charge the labor and do not mark it up at all but I would like to eventually get rid of these types of customers by marking up labor but I don't know exactly how much to mark it up.

[xrac]

Mostly we do not installed customer supplied parts. Occassionally we make exceptions. Go up as much as you think appropriate. I am thinking at least 20-25%.

[5 Star Auto Spa]

xrac, do you just flat out deny customers that ask to have their parts installed? Do you feel like you are losing out on revenue from these customers or do you feel as though this is the type of customer you don't want anyways? Its tough because you don't want to lose out on any business but at the same time you want to have a complete sale for each customer.

[Joe Marconi]

With rare exception, we do not install customer supplied parts. During the recession we saw an increase in people coming to us with their own parts and we tried to accommodate them, charged more labor, but in the end it turned ugly, for the most part.

 

I can remember one guy insisted that we do not diagnose the car and install his mass air sensor, which he read on the internet and was confirmed by the parts store that pulled a mass air code. After the part did not solve his problem it tuned into an argument that WE should have known better.

 

We do make exceptions. The other day a customer came to us with a front differential that he thought he could do himself. He was real nice and did not give us a hard time. In fact, he was embarrassed that he brought us the part. We did the job and it turned out nice.

 

The bottom line, we make money on labor and parts. Take away the part profit, take away too much of what we need to survive.

[xrac]

xrac, do you just flat out deny customers that ask to have their parts installed? Do you feel like you are losing out on revenue from these customers or do you feel as though this is the type of customer you don't want anyways? Its tough because you don't want to lose out on any business but at the same time you want to have a complete sale for each customer.

 

I simply tell them that we do not install customer supplied parts. If they ask why I tell them that labor alone is not enough to cover all of our overhead expenses: i.e. rent, taxes, equipment, etc. and that we make money on parts. This is necessary for us to provide warranties and stay in business, I suggest they look for a small shop that doesn't stay as busy as we stay. If they want to supply something like a water pump or heater core I explain that that is not smart at all from a warranty standpoint due to the fact that labor is the big cost in these situations.

 

Invariably with customer supplied parts you run into situations that it is the wrong diagnosis, the wrong part, or you are having to straighten out other things done improperly. If we drive enough of the right kind of business to the shop we can let other shops deal with these time wasting less propfitable jobs.

 

I do make exceptions sometimes. Occassionally I will take something if we are really slow or if someone has some custom performance parts.

[Jeff]

Going against the grain here....I do install customer parts. Mark up the labor a bit...no warranty at all beyond the part will not fall off. If the parts are wrong and the car has to set till the customer gets the correct parts then it is billed dailey "inconvience" fees. Labor is added for a second r&r. Additional testing if needed is billed at full rate ++++.

Now I can say this does not happen often. But I cant see letting the dollars get away. And I have turned a few into very good customers. At the end if the profit is equal to me suppling the part then it is all good.

[5 Star Auto Spa]

What we see happening here at our facility is vehicle is diagnosed by our tech either through an oil change or the customer coming in for a diagnostic. The customer does not have the vehicle repaired that day of the oil change or diagnostic and leaves with an estimate. Then on a later date, the customer tries to bring the part that we have recommended by purchasing it at a local parts store or online. We do try and push the warranty aspect of it but for some people, they can only think of right now and not in the future. As I said earlier, we currently charge the same labor as if we were purchasing the parts but I'm seriously thinking about changing that and increasing the labor rate. Is 25% the amount of labor increase you guys typically increase?

[RWI]

I like many of the other posters with rare exception just do not allow this, I have tried in the past and it rarely went smooth, customers would complain about increased labor, wrong parts would come in, and with the vehicle apart a bay now is tied up. Even when explained and written on the invoice if there is a failure you will likely have an argument on your hands as this type of customer does not want to spend to begin with. At least for me this is not my target customer, they are usually looking for the lowest price. If is a specialty type part that I don't want to sell and it looks like I can make money, then I will, other then that thanks, but no thanks!

[DanW.]

With rare exception, we do not install customer supplied parts. During the recession we saw an increase in people coming to us with their own parts and we tried to accommodate them, charged more labor, but in the end it turned ugly, for the most part.

 

I can remember one guy insisted that we do not diagnose the car and install his mass air sensor, which he read on the internet and was confirmed by the parts store that pulled a mass air code. After the part did not solve his problem it tuned into an argument that WE should have known better.

 

We do make exceptions. The other day a customer came to us with a front differential that he thought he could do himself. He was real nice and did not give us a hard time. In fact, he was embarrassed that he brought us the part. We did the job and it turned out nice.

 

The bottom line, we make money on labor and parts. Take away the part profit, take away too much of what we need to survive.

Hey Joe, in reference to the gentleman that needed the MAF. We have a saying here at our shop "Of course it didn't work. We fixed what you told us to fix."

 

We too make some rare exceptions. For the most part the answer on the phone is "I'm sorry but, we don't install customers own parts." When we do, the labor up charge is 1.5 times the labor rate and we do state on the invoice that we used the customer supplied parts. We also say NO WARRANTY. However, we also know that the law is on the customers side with the warranty issue. But, the customer doesn't have to know that.

[ATSAutomotive]

I do not install customer parts except for the VERY rare occurrence. I have only had a handful of people really inquire as to why we will not do this. Pretty simple to me, you don't take your own food to a restaurant. Everyone has pretty much hit the nail on the head as to why we shouldn't do it. We are the professionals, we know what brands work and what one's don't. Keep in mind, we are liable even if they sign a piece of paper stating NO WARRANTY. Law is on their side.

[mspecperformance]

Just had a terrible experience. Installed a downpipe for a 335i a few weeks ago for a guy. He initially called in and told us he had an downpipe to install. No problem seemed pretty straight forward. Customer comes in, turns out to be a used downpipe and no exhaust gaskets. Explained to customer that he might have issues since he needed new gaskets said ok no problem.

 

Fast forward to today, guy comes in complaining of an exhaust noise. Explained to him that we are more than happy to drop his exhaust and examine the entirety of the exhaust however if there is nothing apparently wrong with our work then we would have to charge him again. Customer agree, we drop everything, nothing wrong. All of a sudden customer has a problem paying trying to cite all kinds of crap out of the wood work. He even said we never had to drop the exhaust to install his downpipes as per a video he saw. Don't know where these people come up with this stuff. Do they genuinely believe their BS or are they trying to get over? Either way is scary. Guy is a bottom feeder customer, I was contemplating on letting him off the leash without paying but then I'd feel like a real idiot for doing free work. On the other hand, this customer could turn around and give a negative review out of fabricated stories. These type of people I really wish the worst for, we would all be better off with them gone off the earth.

[xrac]

Just had a terrible experience. Installed a downpipe for a 335i a few weeks ago for a guy. He initially called in and told us he had an downpipe to install. No problem seemed pretty straight forward. Customer comes in, turns out to be a used downpipe and no exhaust gaskets. Explained to customer that he might have issues since he needed new gaskets said ok no problem.

 

Fast forward to today, guy comes in complaining of an exhaust noise. Explained to him that we are more than happy to drop his exhaust and examine the entirety of the exhaust however if there is nothing apparently wrong with our work then we would have to charge him again. Customer agree, we drop everything, nothing wrong. All of a sudden customer has a problem paying trying to cite all kinds of crap out of the wood work. He even said we never had to drop the exhaust to install his downpipes as per a video he saw. Don't know where these people come up with this stuff. Do they genuinely believe their BS or are they trying to get over? Either way is scary. Guy is a bottom feeder customer, I was contemplating on letting him off the leash without paying but then I'd feel like a real idiot for doing free work. On the other hand, this customer could turn around and give a negative review out of fabricated stories. These type of people I really wish the worst for, we would all be better off with them gone off the earth.

That guy has a car he has no business owning because he cannot afford to maintain it.