Help With Something
 

Hey ya'll ,

I'm working on new pricing policys for the shop. I was wondering when it comes to Aftermarket items such as napa products or advance products, oil changes and so on, What do you feel is a fair markup? I understand everyone wants to get a great deal but I've got to make money to. Is it fair if a customer brings their own parts to charge more?

My main concern is even at the best pricing level available (spend about $90,000 a year) at advance and napa , They still sell the parts so cheap if I go anywhere near list customers start complaining.

I was hoping someone else had experience in this area, I'm really looking for a fair but no exceptions pricing policy. I've really lost cash in small areas like oil and small inventory parts due to low room for markup.

That's a tough call. I'd say at least 10%?!?

Industry standards from what I've found is a variable scale starting at 75-100% on items under $3.00 and Moving from there, In the $300.00 range i think it was 35%. I feel like if i charged that my customers would be somewhat upset. But in the same respect, I'm paying for a shop, tools , everything else thats needed and so on. I've got folks hounding us left and right about $55.00 an hour labor rate on the book. We just integrated a $45.00 charge for pluging the Modis up (newest purchase) . I'm already catching flak about that as well , people seem to think if their repeat customers I shouldnt charge. So I started doing that but then had people paying the $45.00 charge and bringing a vehicle every two days?

I am in a different business than you, but I still have figure out mark up for my bills.

We mark up everything 20-25%, I do agree that anything cheap needs to be marked up more, but be careful there, alot of people know that an oil filter is only 6 bucks. Although keeping in the sprit that you need to make money you got to remember there is a lot of people who pay to get oil changed for convience.

Make sure you put money in your bill somewhere for shop supplies (ie. WD-40s, rags, torch gas, and other what nots.) I have been put this on my bills as (Misc Shop Expendibles) $10.00. Not alot, but it covers everything, if you cant do that, slip it in. But becarful and honest.

Make sure you charge for parts you have to pick up, fuel and employee time are not cheap.

As far as your shop rate, I am in California, I pay 65.00 to 70.00 bucks an hour for different services. 55 bucks an hour is the guy that fixes our welders and small motors. You just have to do good service at a fair price, and customers will return. I would rather pay more and go to the shop once, than pay less and go twice. My time is just a valuble as my service provider.

Lastly dont charge more if someone brings you a part, but maybe a fee.

Got more questions ask me, just dont take my word for gold. This is just how I feel

when i was at peterbuilt we marked up all parts 18% if we had to go out side the paccar comp (peterbuilt and kenworth). Small things like oil changes was a set price unless there was a odd vehicle that took alot less oil like a diesel pick up.

after leaving there i went to a small shop and we were a napa service center so we got a nice break on parts so our 20% markup was still cheeper than what the custumer could go down to the store and get it for, but even if your not a service center to napa and you have a comercial account you get a discount and you still have the avalibe room for mark up

You have to charge for the use of any specialty idem like scanners and items like that
Hope it helps

Dont let people bring there own parts unless its something you cant get. None of my shops do.If they dont like it tell them sorry thats the policy.

i would mark stuff up 10-30%..... remember your time to stop what you are doing and call and order the parts cost you time which equals money.... also charge 45 bux to scan the vehicle and then tell the customer you will not charge them if you fix the diagnosed problem.

on the customer bringing their own parts.... dont offer or honor any labor or parts warranties. if they get somethinmng that breaks in a week it is their job to get a new part warrantied out and pay you to replace it again..... that is just how i roll...

Your signature says, "Competitive pricing and incentives for the average Joe"

You can't make money and offer lower pricing than the next guy, it just doesn't work that way. Don't be afraid to charge more if you do a better job than other shops. As far as people bringing in their own parts, just charge a fixed percentage of the bill as a shop fee to help cover overhead, of course make it known that is the policy in your shop. There's nothing wrong with turning away a cheap customer, did you really lose anything by not doing there work for cost?