Repair costs - reasonable mark up on the PARTS portion of an independent shop's repair bill

[trinacriabob]

I've sort of wound down to using 1 GM dealership and 1 or 2 independent shops.  I've found an independent shop I really like.  The owner, also a mechanic there, is real easy to talk to and has an excellent reputation among his peers and customers.

So, here's the question.  What is the normal mark up for parts that he has to get from the auto parts stores that he works with?  Is it 20%  33.33%  Or something else?  I am wondering if there is a rule of thumb.

Or, put another way, say I walk into AutoZone and a part retails to me for $ 100.  What is a reasonable amount for that part on the final repair bill if the mechanic had to purchase it from the same store?

I'm sure knowing this will be helpful to some folks reading this.  As for labor, they will tell you their hourly and book rates.

[G. David Felt]

1 hour ago, trinacriabob said:

I've sort of wound down to using 1 GM dealership and 1 or 2 independent shops.  I've found an independent shop I really like.  The owner, also a mechanic there, is real easy to talk to and has an excellent reputation among his peers and customers.

So, here's the question.  What is the normal mark up for parts that he has to get from the auto parts stores that he works with?  Is it 20%  33.33%  Or something else?  I am wondering if there is a rule of thumb.

Or, put another way, say I walk into AutoZone and a part retails to me for $ 100.  What is a reasonable amount for that part on the final repair bill if the mechanic had to purchase it from the same store?

I'm sure knowing this will be helpful to some folks reading this.  As for labor, they will tell you their hourly and book rates.

For me, usually I see 3rd party places charging me the same cost that Napa or O'Reilly's would charge me as they already get a discount from those parts places buying it at wholesale. Yes some places charge a delivery fee, but for the most part, it should not be more than a few dollars off from you buying the part. If it is more than 1/3rd more than what you pay, they are what is called Keystoning their cost to double it and take a crazy profit.

[balthazar]

I don't believe there is a rule of thumb for what a repair place 'should' charge- it's a matter of what they feel the market will bear, for the most part. However, 20% is common, I believe- it is in the construction trades. That may well be their discount from local, regular parts houses, so the price you 'see' looks really close.

That said : the idler pulleys on my 2500HD went bad & threw the belt. It was late in the day, and it was right next to a local independent garage. He agreed to fix it, but couldn't get the pulleys until tomm, from the GM dealer. I volunteered to pick them up & deliver them to him when he opened, to speed the job, and he agreed.

Unfortunately for him, he didn't arrange to have the dealer put them 'on his tab'. I was there a bit before the parts counter opened at 8AM- the pulleys were still packed. I paid out of pocket- parts guy didn't know me.

I paid $32, garage tried to charge me $80. That's far too much.

 

[trinacriabob]

2 hours ago, dfelt said:

For me, usually I see 3rd party places charging me the same cost that Napa or O'Reilly's would charge me as they already get a discount from those parts places buying it at wholesale. Yes some places charge a delivery fee, but for the most part, it should not be more than a few dollars off from you buying the part. If it is more than 1/3rd more than what you pay, they are what is called Keystoning their cost to double it and take a crazy profit.

Thanks.  This all makes a lot of sense.  Also, I learned the word keystoning today.  So, a good rule of thumb would be that the mechanics get it at a discount if they routinely deal with someone, they then mark it up, and it should return to about the retail price I see, but with a possible ceiling of no more than 1.333 x the retail cost to me.  That sounds plausible.