Quantcast
Jump to content


ATLAuto

Parts margin legality

Recommended Posts

I was talking with a shop owner near us, and the topic of Parts Matrix pricing came up. I casually asked him what type of margins he typically got on parts. He replied, "we just charge list price on all parts. Whatever the customer would pay at the parts store, we charge." Shocked, I asked him how he kept the doors open with such low margins (15% roughly). He replied, "well, you know it's illegal to markup more than 50%, right?" I said, no, I've actually never heard of that in my life. I asked him where he heard that from, and he looked at me like that is common knowledge to everyone, and I should be in jail right now for matrixing our parts.....!

 

Has anyone ever heard of this law, ever, anywhere??

Share this post


Link to post
Share on other sites


Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Similar Forum Topics

    • Customer's buying their own parts

      Hey guys. I'm new to the forum and was looking for this subject but couldn't find it. Sorry If I'm posted something that's already been discussed. I own a brake shop in Austin, TX. We do anywhere from 10-20 brake jobs a day. We only do brakes so I don't know how much full service auto shops deal with this problem but... Customers are constantly calling in claiming they've bought the best parts or they want to provide their own parts because they've done research and know what is best. This drives me crazy. First of all they don't know whats best. Then after being told no they get offended and act like tons of shops allow this. What is the best way to handle these customers? Just send them away? I'll quote them a price using our parts and they act as though its a rip off. What shops are doing this for their customers? I feel like I'm letting jobs get away from me. Any experience with this?

      By Jonathan Ganther, in General Automotive Discussion

      • 78 replies
      • 3,712 views
    • Broken Parts

      Are you guys charging your techs for parts they break? In the past we have never made our techs pay for something they broke, the shop did and talked to the tech about what they need to do to prevent this in the future. It's getting old though. 2 weeks ago one young tech back a mirror into a pole so we bought a new mirror. This week, a different tech while removing a fuel tank, didn't discount the fuel lines on top first and ended up dropping the tank too fast and broke the fuel sending unit. On this truck that is a $300+ part that we are now eating on a $500 ticket. I want to tell the tech he is responsible, and will have to pay the shop back for the part. What say you? 

      By ADP, in General Automotive Discussion

      • 6 replies
      • 305 views
    • Parts ordering

      Does anyone else get frustrated sourcing parts from multiple vendors because of lack of comprehensive inventory from one supplier? I estimate we spend an extra hour sometimes per day trying to hunt down parts. We always start with our favorite vendor then start going down the list.   Just curious how you guys deal with this problem or if it in fact a problem? Thanks in advance, Scott

      By kbomb, in General Automotive Discussion

      • 6 replies
      • 665 views
    • GM Dealer Parts Warranty??? What Would You Do???

      Is there a way to get GM to pay labor warranty? I have a customer's 2005 Chevrolet SSR 6.0L Automatic. Oil pan threads were stripped and we got a new oil pan from local Chevrolet dealer (very pricey) and labor intensive. When I got the oil pan new in the box, it had metal shavings from the casting marks to which we cleaned out and it was fine. We installed the oil pan and after putting some mileage on it, we noticed oil on the ground. After lifting it up we discovered that the oil pan has factory casting marks and oil was literally seeping through the bottom of the pan through the casting mark. The tech is not happy, I am not happy and I'm about to call the customer to tell them the news so they won't be happy paying for more rental car time. I called the parts department from the dealer that I purchased from and told them what happened and they can exchange the pan but they don't pay labor. Very frustrating cause of the labor involved and the customer who had a rental car for about a week now and already turned it in today thinking she was getting her car? Is there a way to get labor reimbursement? I already tried the GM 800 number and filed a complaint and they said it would be about 2 business days or whatever before I get a call back from a rep. Does anybody know how to find a local GM rep to come see their crappy product? Joseph

      By [email protected], in Automotive Products & Services

      • 0 replies
      • 192 views
    • Auto shop owner new forum topics

      Just got my e-mail on the latest forum topics. Out of 20 topics 7 are marketing ads from the same person. Also under popular forum topics of 5, 3 are ads also by same person of which no discussion took place. So how are these popular. I get a ton of advertising e-mail. Just didn't expect this from ASO. I do look into some ASO sponsor ads. But this is not necessary.

      By slowtech, in Member Feedback

      • 14 replies
      • 562 views
  • AutoShopOwner Sponsors



×