jalopnik: The Mechanic Is Not Ripping You Off By Charging A Markup On Parts

[paul123]

http://thegarage.jalopnik.com/the-mechanic-is-not-ripping-you-off-by-charging-a-marku-1752095185
The Mechanic Is Not Ripping You Off By Charging A Markup On Parts

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[GT Pony]

That's why I do all my own work. Only time any vehicle I own goes to the dealership is if it need some kind of expensive warranty work. I've even did repairs myself when still under warranty if it was low cost ... still cheaper then dealing with the dealer and letting them mess up something else and scratch the shit out of my paint.

 

[draco24433]

Agreed with the article. I use to own a repair shop and all my parts had a mark up on price. I included in all my parts a 1 year warranty in labor and parts, no questions asked. Some shops will cover the part but not the labor.

 

[ScottsGT]

Pffft....article is written by a business owner. I understand a markup. But there is a point of just gouging. That's why auto parts stores offer "jobber" pricing and walk in pricing. Here's a good personal example that happened to me.
1995 Mustang GT. Went in for an alignment to a local "mom & Pop" tire store that had been in business for 25+ years.
Alignment tech tells me it needs two new outer tie rods. Too bad of condition to make an alignemnt.
Me: How Much?
$75 each tie rod, and $75 labor for each, so $150 per side, $300 total plus alignment.
Me: I'll take it home and install them. Be back in the morning.
Stopped at Auto Zone and picked up 2 new tie rod ends for less than $25 each. (about 6 years ago) And yes, they are still on the car and in great shape.
Got home, jacked up car and working in the rain (front end of car in the garage, so only getting a little splatter LOL!) swapped out both ends in under 1 hour and that was taking time to teach my son.
What he learned was a lesson in getting ripped off. The old tie rods were as tight as the new one's I installed. There was absolutely nothing wrong with my old ones.
When I confronted the owner (much later after they stripped my daughters oil pan on an oil change, and I didn't do hers because I was already pulling maintenance on 2 cars in the driveway already) he argued with me until he was blue in the face and kept telling me I got a free diagnosis. "WTF! A WRONG DIAGNOSIS!! CAN YOU NOT GET THAT IN YOUR HEAD??" Now if they had just quoted me a fair price on the tie rod ends, I probably would have said screw it and let them do it.
Long story made short, shop was under new ownership and trying to live off the Mom & Pop reputation.

My brother owned a Midas franchise once. The markup he had on prices were effin crazy. I once asked him where in the hell he gets these astronomical prices from. Said he just made them up. But he bitched because people always brought in their own parts. Well no shit dumbass. When you are charging $200 for a $40 part you should be damned lucky they even brought the car back so you can get labor off them. I would go elsewhere.

 

[1320']

Worked in auto wholesale for 3 years in Medford, Oregon. Performance Warehouse and Baxter Auto Parts to be exact.

I can tell you, generally, the average markup is about 30% for most independent, aka "single owner, non-franchise" shops.

Dealerships averaged about 35%, with BMW and Nissan being the worst offenders, they usually marked up about 55%.

Sometimes they have to special order parts, which is when they say "they can get the parts in about a week". In that case they pay a special order fee (usually about 2% of the shop cost) and shipping (varies wildly). So if we sold them say..a cam phaser for a 5.4 Ford (sold lots of those...) for $75, they would likely turn around and sell the part of the customer for about $95.50.

Shops will inflate prices to avoid having to pass on excessive expenses to you. They use a fairly significant amount of cleaners, grease, etc in working on vehicles, and normally only charge $2 or so for "shop supplies". They absolutely use way more than that in consumables, and they offset it by applying a markup on parts.

Now some shops do just plain gouge the crap out of customers. One shop in Medford Oregon, I'll decline to name which one, usually would mark up parts about 240% on fleet customers (Charter Phone and Internet, Dish Network, etc, basically anyone who came to him with deep pockets). I once saw a warranty invoice where we sold an alternator for $84($104 with refundable core). He then turned around and charged the customer well over $380 for the Alternator.

You cannot get around it, and dealerships are the worst offenders when they use OEM parts. More often than not the OEM parts are the same as the aftermarket, they're just numbered and branded for the OEMs. When they ask "is OEM equal okay?" on parts..more than likely you're still getting "OEM" parts but without the name..and they're making a killing on you.

It's all a business, no way around it. The only way to avoid it is by not owning cars.

 

[Socalmustang]

I disagree with the article! If you can buy an alternator for $86 online, but your local shop is charging you $246. What would you do? It's a no brainer for me.

Usually most shops carry a labor guarantee, so that's thrown from that aspect. I get the part where you have to mark-up, but up-charging a crazy amount is ridiculous.

like the saying goes....a smart consumer is an informed consumer!

 

[BMR Tech]

There is a fine line here.

One of the biggest examples of this is tires. If I go to the local tire store, they will charge me $200 for a tire I can get for $147 online.

However, if I ever have an issue with the tire - I take it to them, and get a call when it is repaired. I don't know how to R&R my own tires.

If you do purchase that $147 tire online, the cost will likely go up to about $170, once the shop charges you more to mount and balance it. Then of course, you take it home and install it. IMO, in that case the $200 per tire in & then out the door is well worth it.

That fine line. Some people, can't afford it....or get mad because the shop is making money on them.

On topic, the parts stuff from an automotive repair shop should not exceed a certain % of mark up IMO. The shops that "gouge" should learn to get business and run their business better so they can be more cost friendly for their clients.

Most repair shops will not offer any warranty on labor or parts if you go to them with a part you purchased online. I definitely would not warranty it, if I was the shop owner and someone brought their own part in for install.

It really boils down to what you are receptive of, and willing to pay. Many Americans get a quote and think "well, I gotta fix it...and I have plenty of money, so just fix it"

Remember, we as people have options AND should have negotiating skills. Use those to your advantage.

 

[L8APEX]

Those filthy capitalists.

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