Dealer parts mark-up

[J.P. GLENN]

Hi everyone! I browse the site frequently, but this is my first time posting. Thanks for any advice in advance!

 

I have been working on my parts matrix and am concerned about marking up dealer parts too much. My main concern is that we are a Honda/Acura specialty shop and use ALOT of dealer parts. It is hard to think that we should make less money using better parts.

 

I don't believe in list price on anything. My margins are my only concern. In fact, I am not even sure that the dealer sells parts at list (something I would love to know). They quote list if you call the parts department, but do you pay list as a service customer?

 

Should I have multiple matrixes? Should I stick to one? Should I stick to dealer list?

 

I am just wondering what others are doing, and if anyone has suggestions.

 

Thanks!

J.P. Glenn

Intercoastal Auto Service

[CARMandP]

As a fellow Honda shop I can tell you that EVERY dealer in our area except one sells at above list price. They matrix their parts. The dealerships have to since their overhead is much higher than yours. Call your area dealers looking for a price on a specific part (don't tell them who you are) and see what the prices go at. Also, if you do not use WorldPac, you need to sign up with them. They sell a lot of the OEM manufacture parts at less than I can get them at the dealership a lot of the time.

 

Also you will need to mark dealer parts up more because most dealerships only give you 25-30% off list anyway and I can tell you that isn't enough for me.

[J.P. GLENN]

Thanks CARMandP for the reply!

 

I use Worldpac daily! Do you matrix your dealer parts the same as others? I might have read it wrong, but do you mark-up dealer parts more than other supplier's parts?

 

I deal with both of our local dealers regularly. (One far more than the other, but still buy from both). When I call to "price shop" a part, I get sent to the parts deparment. They both quote list. But I have been told that the service department does use a matrix. I have had some difficulty getting accurate quotes from the service writers. In one recent attempt, I got 2 different prices, from 2 different writers, on the same job. I assume that they do mark-up the parts, but they are quoting list when asked about a specific part.

 

Being a specialist too, do you compare your pricing to the dealers? I know what I need to make, but am always concerned about being more expensive than the dealer. (and in some cases I NEED to be).

 

Thanks!

J.P. Glenn

Intercoastal Auto Service

[FROGFINDER]

Whatever the cost of a part you must make the profit that you need to stay in business period. With information age it is tough and it will get tougher. We are in a war.