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Question on List Price

Carguy

By Carguy
in Pricing, Discounts, Labor Rate

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autoguy Rising Star

autoguy

Posted
Posted
Frist, great new forum! We needed this.

 

My issue is with list price on parts. Some shops use the list price, other shops use thier own list. What is the best way to go about this.

 

My fear is that customers may call if I charge over list.

 

Need help!

 

I think manufacturer list prices are fictitious and you should use some sort of formula to mark up your parts accordingly.

  • 2 weeks later...
Charlie Contributor

Charlie

Posted
Posted

Most operating systems have a parts pricing matrix that will give stair step pricing to your individual parts cost. There are always those items that are considered more of a commodity such as tires, batteries, wiper blades etc. Your over all parts margin should be 55%. Keep in mind that the dealer does not stick to dealer list. The parts department will sell the part for a profit to the repair division, they then adjust the price to meet their matrix which is often over the part list. Some will complain, by far the majority will not. How are you doing on shop fees? our shop fees should cover your rent...no kidding!

Charlie Contributor

Charlie

Posted
Posted
A parts matrix is the only way to insure that you achieve your overall GP on parts. And, I agree, those items that are price sensitive are the ones that we need to be more competitive with.

 

As far as fees are concerned, are you talking about hazmat and supply charges?

Charlie Contributor

Charlie

Posted
Posted
A parts matrix is the only way to insure that you achieve your overall GP on parts. And, I agree, those items that are price sensitive are the ones that we need to be more competitive with.

 

As far as fees are concerned, are you talking about hazmat and supply charges?

 

Supply charges would apply to all of your consumables and recyclables. There are many things we all supply and never get paid for, it may be a sealant, grease, connectors etc. Our supply charges are 8.5% of ticket with a cap of $43.19 and we never have a complaint. Our charges cover our rent.

Charlie Contributor

Charlie

Posted
Posted

New York and California are very restrictive and yes it is much easier in Virginia. Shop rent runs $9 to $11 per sq foot. Franchises tend to run 1.5 times as much since the property for them is a profit center.

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