Markup ON Car Parts?
 

Anyone know the markup rate on car parts?

Seems to me it seems pretty high 60-100%?

Seeing how competative the computer market is these days 0.5-8%

There must be some places that sell car parts dirt cheap...

Skyler

i got an exhaust done on my cavalier last month. the guy called his supplier for parts. the supplier is a popular auto parts store in the area, and this guy's price was like $90 for the whole package. he had the ear piece on the phone up too loud, and i heard the whole thing. then he turns around and wants mne to pay 250 for the parts. so in this case the markup is over 100%. i can imagine what the parts store paid for it.

dont know skyman sometimes the part's we buy at work is so stupid like a turn signal switch for a international school bus is 100.00 plus, it's a plastic pos that just screws on the steering colmn ,with a wireing harness, it's crazy,let alone what car part's are these day's i know what you mean though, you have to get a second job to mod your car. it's robbery.cya

It has to be a lot. I needed a timing chain cover for my 5.0 when I had it rebuilt. I called the local Ford garage and they told me it was $475. The only other place I could find one wanted $75. (None of the boneyards even had one.) I bought the $75 dollar one, and I thought that was a little steep.

Ok, here it is from the horses mouth. The Ford Dealers get a maximun of 40% off list or a 60% mark up. Some parts are less around 30%-38% off list. Accessories are about 25% discount to the dealer. In other word it a parts list price is $100.00 then the dealer pays $60.00. A lot of our business is wholesales to auto body shops and auto repair shops. We give between 30-35% discount on parts that we get 40% off on depending how good of a customer they are. So in the end on that $100.00 part we make $10.00 to $15.00 on it. When it is all said and done and we pay the nine parts employees and 2 drivers and trucks and taxes, insurance and all rents and utilities we end up with about a 10% profit. That's for all the parts sold to retail, wholesale, and cars repaired in our shop weather cash or warranty. We sold 3.5 million in parts last year and netted a $350.00 profit.
On the other hand I have heard that Ford Motor Co makes at least a 400% mark up to the dealers. RAY THE PARTS MGR.

Interesting...


You guys sold 3.5million in parts and only netted 350bux????????



Skyler

LOL, My bad. How bout $350,000.00 is that better. If the prior was true I'd be out of a job. LOL RAY

Mark 'em up!
 

Ray

Based on what I see at my friend's auto shop, your numberrs sound about right.

You're seeing about a 10% net profit on parts. Not bad and pretty average for the industry.

Yikes, you gotta love paying for the middleman. But really there is a huge markup in anything you buy. Although computer hardware has a low markup, it's the software where they make a good amount of there cash.

I know for a fact that FoMoCo parts have a tremendous mark-up, I'd say 400% is about right (at least).

As far as knowing the mark-up on other stuff, I don't think I want to know actually. Can't be a whole lot as the competition is pretty fierce.

The widely accepted practice for indy shops is to multiply our cost times 1.8. In otherwords, if our cost is $100, we sell it for $180. The thing to remember, though, is we usually have a lower starting price than the public does, plus our costs in getting the parts, etc. We get it cheaper because we buy more parts than John Q Public does. Indy shops rely on the small mark up to survive. No one wants to pay dealer labor rates at an indy shop, but our expenses are comparable.

Take care,
-Chris