should body shops make money off parts? - TwoWheelForum: Motorcycle and Sportbike forums
View Poll Results: Should a body shop charge markup on parts
Yes 14 70.00%
No 6 30.00%
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post #1 of 24 (permalink) Old 06-21-2007, 05:35 PM Thread Starter
 
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should body shops make money off parts?

So I'm just wondering what you all think about this topic. I run into it all the time with my work.

Should body shops make a profit off the parts they buy to put on a vehicle they are repairing.

I say no, and the reason is they are not incurring any storage, shelving, maintenance or any sort of fee's for the item that you actually NEED to have a markup for. A shop like Napa charges a mark up on parts because they sit of a shelf, in a store, that has expenses directly related to the sale of that item. a Body shop has no expenses directly related to a part they get for a customer car and therefore should not charge any sort of markup.
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post #2 of 24 (permalink) Old 06-21-2007, 05:38 PM
 
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IMO, a shop shouldnt IF the part goes directly from box to vehicle. if it sits on a shelf, then yes, since that shop has to pay for their expenses. the ones that put it into the vehicle, well the labor should cover those expenses.
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post #3 of 24 (permalink) Old 06-21-2007, 05:46 PM
 
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Uhhh, they still have to have a guy/gal that makes the phone call to place the order, a person to process the order and to pay the bills.

They shouldn't charge you full markup since that they don't have capitals tied in for keeping an inventory, but they gotta charge something. You don't go to work for free so why should they?
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post #4 of 24 (permalink) Old 06-21-2007, 05:47 PM
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Ok someone buys something from another person in turn they sell it for a profit. I believe that in most countries is called a business

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post #5 of 24 (permalink) Old 06-21-2007, 05:48 PM
 
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Originally Posted by fnfalman View Post
Uhhh, they still have to have a guy/gal that makes the phone call to place the order, a person to process the order and to pay the bills.

They shouldn't charge you full markup since that they don't have capitals tied in for keeping an inventory, but they gotta charge something. You don't go to work for free so why should they?
5% or something like that would seem fair. Anything above that is just greed.

In most cases shops only order for each job, and rarely keep an inventory of body parts, that's why I think it's
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post #6 of 24 (permalink) Old 06-21-2007, 05:58 PM
 
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If you let a shop charge you full price on accessories & parts even though it doesn't stock said items, then it's your fault. Have a chat with them before hand and come to an understanding about markups and pricings. I get seriously discounted parts in exchange for labor and repeated business. But it's an understanding that I made with the shop before commissioning them to do the work. Now, if you were to take your bike to a stealership's shop then you're screwed. If they don't get to work on your bike, then they'll get to work on ten other idiots' bikes who brought them in for full charges/full services. I mean, really, what's the point of owning a Jap bike only to pay out as much for service as one would with owning a BMW or Italian jobber?
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post #7 of 24 (permalink) Old 06-21-2007, 06:07 PM
 
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If you let a shop charge you full price on accessories & parts even though it doesn't stock said items, then it's your fault. Have a chat with them before hand and come to an understanding about markups and pricings. I get seriously discounted parts in exchange for labor and repeated business. But it's an understanding that I made with the shop before commissioning them to do the work. Now, if you were to take your bike to a stealership's shop then you're screwed. If they don't get to work on your bike, then they'll get to work on ten other idiots' bikes who brought them in for full charges/full services. I mean, really, what's the point of owning a Jap bike only to pay out as much for service as one would with owning a BMW or Italian jobber?
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post #8 of 24 (permalink) Old 06-21-2007, 06:08 PM
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I've worked in a couple body shops once upon a time. And I can see both sides. Only time I take anything to the dealership is when its free or someone/thing else is paying it. (insurance etc) A mark up to cover handling yes, but not what some shops try n pull. I know how to talk to most shops n get nice discounts, and if they do good work I send work their way etc.
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post #9 of 24 (permalink) Old 06-21-2007, 06:27 PM
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Depends on what the markup is.
Working for an auto dealership, I see a lot of parts come and go.
For the body shops we work with often, they get parts at 10% over our cost. They in turn mark them up another 10-12% for retail sale. This is business, it's what makes places money.
If they DIDN'T mark up parts, they would in turn have to increase labor rates to cover costs.
They can charge you an extra 10% on parts, or they can jack their labor $15/hr horse apiece, costs money either way.

The way I look at it, if you don't want to pay for the "marked up" parts, find your own. Retail on most body parts we sell to an off the street customer would be marked up about 35%, so more expensive than what the body shop will charge, and they are pissy cause you got your own parts.

Sorry for the rant, just seems everyone wants everything free these days.
Learn the difference between a "deal" and putting someone in the hole.

Not everyone is out to make a million off YOU, and not all dealerships are bad. Currently we have at least 8 vehicles on the lot that the price in the window is UNDER what we paid for it, not counting paying the techs to prep it, recon to clean it, etc...

I'm done now.

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post #10 of 24 (permalink) Old 06-21-2007, 06:34 PM
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Yea I seen good n bad dealerships, and I'm sure all have their bad deals/stories. Its a business and some will always think they got ripped off when they didnt. I use to work for the local Dodge dealership and I even seen them give a guy $1k on a trade in and then it sold to me n a bro for a $100. And yea I'm sure they made up for it in the fine print. And I dont mind paying a 10 - 15% markup I was refering to the the shops that add 10 - 20% on top of retail. Ya all know the shops I am talking about. In the end, you get what you pay for. So again it goes back to each their own I guess.
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post #11 of 24 (permalink) Old 06-21-2007, 08:22 PM Thread Starter
 
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most of you are missing the point.

shops should make their money off labor. they charge enough for labor to cover any work that is involved with their business. Their business is not about stocking and maintaining an inventory of parts therefore there is no need to mark it up.

it seems to be a "perk" of the business that body shops do.

When a guy comes to install a sprinkler system for your yard he doesnt charge you more for the pipe than he bought it for!! Why should a body shop charge more for a fender than they got it from the OEM wholesaler for.
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post #12 of 24 (permalink) Old 06-21-2007, 08:35 PM
 
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Quote:
Originally Posted by ptowntsi View Post
So I'm just wondering what you all think about this topic. I run into it all the time with my work.

Should body shops make a profit off the parts they buy to put on a vehicle they are repairing.
Yes, they are providing you a service by ordering them for you. And chances are, even with their markup, it's cheaper than what YOU, Mr. Joe Blow, can buy them for on your own. (afterall, if you could purchase them cheaper, you probably would).
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post #13 of 24 (permalink) Old 06-21-2007, 08:36 PM
 
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Originally Posted by SVRider View Post
Depends on what the markup is.
Working for an auto dealership, I see a lot of parts come and go.
For the body shops we work with often, they get parts at 10% over our cost. They in turn mark them up another 10-12% for retail sale. This is business, it's what makes places money.
If they DIDN'T mark up parts, they would in turn have to increase labor rates to cover costs.
They can charge you an extra 10% on parts, or they can jack their labor $15/hr horse apiece, costs money either way.

The way I look at it, if you don't want to pay for the "marked up" parts, find your own. Retail on most body parts we sell to an off the street customer would be marked up about 35%, so more expensive than what the body shop will charge, and they are pissy cause you got your own parts.

Sorry for the rant, just seems everyone wants everything free these days.
Learn the difference between a "deal" and putting someone in the hole.

Not everyone is out to make a million off YOU, and not all dealerships are bad. Currently we have at least 8 vehicles on the lot that the price in the window is UNDER what we paid for it, not counting paying the techs to prep it, recon to clean it, etc...

I'm done now.
Brilliant. Well said.
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post #14 of 24 (permalink) Old 06-21-2007, 08:39 PM
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i work in a body shop and they charge a WHOLE lot less than mechainic shops.our labor rate is around $40/hr. mechs are $70-115 in our dealership. w/ insurance companies tryiing to run the business any bit xtra helps. alot of body shop managers order their parts, being oem,aftermarket or used. thats another way to get their bonuses up.

i say yes on the poll but actuallly dont care b/c i pay cash at our discounted price from our distrubtors. but if i do a side job at home i markup the part too just to get some xtra $. they still save on a side job so their happy too. gotta live somehow

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post #15 of 24 (permalink) Old 06-21-2007, 08:45 PM
 
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Originally Posted by ptowntsi View Post
most of you are missing the point.

When a guy comes to install a sprinkler system for your yard he doesnt charge you more for the pipe than he bought it for!!
Hah, you think so huh?

Think again.

I work for a manufacturer of construction products. We sell to wholesale distrbutors, who then in turn sell it to contractors who install it on your home. Lemme put some perspective on this for ya...

We produce it, we sell it at 25-40% profit (sometimes way more, sometimes less... depends on the product, and the market)

Distributor puts 10-20% mark-up on it.

Contractor puts another 10-15% on it (and most of the time, he doesn't even have to touch it before it gets installed, as the distributor, or even sometimes us, the manufacturer, will deliver it to the jobsite).

We see copies of invoices alllll the time for what the installed prices are for these products. Now we know (via extensive research) what the average prices are for LABOR (and we know what that distributor's selling price was to the contractor), so it's very easy to see that an additional markup has been made in the interim.

We ALSO sell through retail outlets like Home Depot, Lowe's, etc... we know what we sell it to them for (which is actually MORE than what we sell it to the wholesaler for, in many cases), and we know what the retail price is. And ya know what? Even with 2 mark-ups on it, what that contractor sells it to the homeowner for is often less than what you're going to pay if you try to buy it yourself at the retail level.


There's many variables and nuances to this, but that's the gist of it all, simplified.
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post #16 of 24 (permalink) Old 06-21-2007, 08:52 PM
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Originally Posted by neebelung View Post
Hah, you think so huh?

Think again.

.
good point! when we get used parts from some of our distibuters they send us 2 invoices. one w/ part prices for our records and one w/ out to put in the insurance file so they can see we ordered the parts.

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post #17 of 24 (permalink) Old 06-22-2007, 12:46 AM Thread Starter
 
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Yes, they are providing you a service by ordering them for you. And chances are, even with their markup, it's cheaper than what YOU, Mr. Joe Blow, can buy them for on your own. (afterall, if you could purchase them cheaper, you probably would).
I have NEVER EVER run into this in any claim that has come across my desk. Today for example, I got a shop charging our insured $385 for a hood that I found for $200, same exact CAPA certified part. www.rock-auto.com . and thats not even wholesale, many shops can get parts for wholesale.

The funniest one is when we get shops trying to get a half of labor to "degrease" a panel for cleaning.

what the hell was the .5 hours of prep for then to get it ready for painting. yeah i definitely didn't pay out on that one.

I don't know someone could think that shops don't absolutely make a killing. i got a claim today for $6300, the SUV had a bent fender, hood, bumper... and we are going to pay out nearly that, they billed 66 hours of labor. only the front right side was struck, no engine damage, no damage past the fender... they also tried to sneak in $700 extra in parts. They billed us for a left headlamp too, when only the right one was damaged... did not pay out on that either. sometimes they must think we are stupid.

Last edited by ptowntsi; 06-22-2007 at 12:53 AM.
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post #18 of 24 (permalink) Old 06-22-2007, 06:02 AM
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The funniest one is when we get shops trying to get a half of labor to "degrease" a panel for cleaning.

what the hell was the .5 hours of prep for then to get it ready for painting. yeah i definitely didn't pay out on that one.
evidently you never got a used hood that YOU had to paint for the exact same time as pulling a new one out of the box. when that underhood insulator is caked w/ oil do you really think paint will stick w/out degreasing it??? it would be one giant fisheye man. insurance write that used JUNK and expect us to make it perfect w/ no extra charge jsut so they can save money. you never know why that salvage part got to the yard any way.

its always great when you get a zillion wasps flying around stinging you b/c they made a nest in the used mirror or in the gas door of a used 1/4 panel. i need to start saving the wasps and keepin them alive so i can put them in the adjustors car wehn he comes back for a supplement..

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post #19 of 24 (permalink) Old 06-22-2007, 08:19 AM
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Yes they absolutely should. They took the time to go get the part. In some cases however, they get a subustantial discount vrom the vendor, so in turn they should pass that discount on to you but they are entitled to make a little money on the parts.
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post #20 of 24 (permalink) Old 06-22-2007, 09:27 AM
 
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Yes. Its called return on investment. Lets say a shop buys a fender to put on your car. At this point in time, the money they paid for the fender is tied up in the fender, and cannot be used for anything else, i.e. interest, investments, capital, etc. Now, in a single case, the shop may not have a lot tied up in parts. But looking at the entire picture, a good sized shop may have over $100k tied up in parts going on to vehicles at any given time. Therefore, to realize a return on the investment they made in the fender, they charge you, the customer, an upcharge. How much they charge is now the issue. Some more honest shops will tell you up front the markup on parts, others do not. At this point, it us up to the consumer to do his or her homework and go with the best option.
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