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Byron

Understand parts markup

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I have been overwhelmed with the amount of reading, number crunching, how many people live in the area, how busy the road traffic is, average income for a household on and on and on..... right down to my overhead costs, insurance, gas and electric, internet, paper etc....

 

Will you shop owners give some insight as to how you go about marking up prices on parts. For example should I be marking up my parts to cover my overhead only or should my parts and labor be included to make up for my costs of doing business and profit. Is there a certain program used to mark up parts or do you do it just from experience. I hear the term matrix used will someone please explain what that means and how they reach there mark up using a matrix formula. I know for parts that cost less you are able to do a bigger or better mark up. At what point then for the cost of a given part do you do less of a mark up and how much. I also realize in a given area when peoples income are higher parts can be adjusted to fit for that economic area. So I hope to get this part of doing business figured out and it is giving me some anxiety over learning all this and would rather get the knowledge now from experienced shop owners.

 

Thanks

Byron

 

 

 

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