OT: INDY Parts Pricing / Markup

[jsoto]

What would you consider fair pricing on Indy parts / Markups...

It's all over the map. Some Indys charge about a bit more on OEM Lemforder, etc parts. Or same as if you were to *buy it online*. Most of the time, it's worldpac, etc as their supplier.

What about OEM. I don't like to go to the *shop* with a box of parts...as selling /profit from parts is somewhat part of the business...

Just went to a new indy. the OEM equivalent parts was on point.
What threw me off was one OEM part - needed from dealer. Let's say the part is listed at $136. Assume he get's a 10-15% discount.....
Indy was charging $200 for this part. What gives

[JCL]

20-25% usually is a fair margin.

When I worked in an independent shop, we got jobber parts at a discount, and so could sell them at the same price joe consumer could get them from the same bricks and mortar parts seller at (as long as you didn't bring internet pricing into it).

A dealer would give us the same or a similar discount, and we would sell the part at the same price as the dealer. There were sometimes small differences for freight on rush orders.

If an independent doesn't deal regularly with a dealer, he won't be set up with them and may have to pay retail. That's when you will get burnt on pricing. Suspect that is what happened here.

If you brought your own parts into our shop for us to install them, we would turn the work down. It wasn't worth doing. If people said "but I bought these on the internet" we suggested they go back to the internet to get them installed. Politely, of course.

[Ricky Bobby]

Originally Posted by JCL

20-25% usually is a fair margin.

When I worked in an independent shop, we got jobber parts at a discount, and so could sell them at the same price joe consumer could get them from the same bricks and mortar parts seller at (as long as you didn't bring internet pricing into it).

A dealer would give us the same or a similar discount, and we would sell the part at the same price as the dealer. There were sometimes small differences for freight on rush orders.

If an independent doesn't deal regularly with a dealer, he won't be set up with them and may have to pay retail. That's when you will get burnt on pricing. Suspect that is what happened here. (x2 on this, he may not be a frequent customer of the dealership and had to pay retail for that "dealer only" part)

If you brought your own parts into our shop for us to install them, we would turn the work down. It wasn't worth doing. If people said "but I bought these on the internet" we suggested they go back to the internet to get them installed. Politely, of course.

On the contrary, I understand JCL's point about bringing your own parts in, but it varies from indy to indy. I brought my X a few times to a local, small indy shop where he is basically a one man operation with a few part time guys helping, 2 bays/lifts, etc. He doesn't keep a large inventory/overhead of parts available, but has great experience with all makes, including BMW's.

When I started going to him after I bought my X, I would call beforehand, tell him about the work my X needed, and asked him if he'd be ok with me bringing the parts in. He told me absolutely, I could bring my own parts in and pay him for the labor/work on the job under 2 conditions:

1) I use quality aftermarket branded parts, not budget brands (e.g. Febi, Lemfoerder, Meyle, OEM BMW, etc, not these no name Chinese parts)

2) If something brok in the middle of the job and I needed an additional part, or if he was in there and saw another problem (e.g. if he was doing work on the valve cover gasket and saw that my expansion tank was leaking) he would get it from his parts supplier or BMW if needed in order to finish the job, I wouldn't leave my car in his lot or tie up the shop bay waiting to order additional parts through the Internet.


This has worked out well for me as most jobs I am very complete with getting new hardware with the parts I need, and any assorted pieces he might need to get the job done easy/quickly (e.g. new hardware with suspension parts etc). His policy ran true for me on 2 occasions so far, when I did my belts/tensioners he found out my fan clutch was shot, so he was able to get an OEM (not BMW) fan clutch installed in replacement the same day from his parts suppliers for perhaps 10 bucks more than I would have paid online, I had no complaints.

The second time his policy came into play I had him replace all the worn suspension arms in the front end, and the known issue of corroded clips/rods for the leveling sensors on the wishbones made them fall apart on disassembly, so I had him replace the clips, rods, etc which he had to get from BMW for about 20 bucks in addition to the work he was already doing for me.

So far for me, my indy is fair, completes things timely and prices his labor accordingly, I have no complaints. but all indys are different, you just have to ask before you start coming there on a regular basis.

[TerminatorX5]

I've had guys who were mobile - one was in Costa Rica, he drove an old mercedes universal (station wagon) full of tools, and he did work in my carport, and another guy here, in VA - this one has couple of trucks, one is light duty with some tools, and the other one is a rolling tool shed on heavy duty chassis...

He works in my driveway, and he prefers me getting the parts, as he doesn't have "business" relationships with the suppliers... It is like a DIY, but with hired hands - I even helped both guys, something light, like holding a light, or handing a tool over... Some repairs I could have done myself but I figured, I'd pay the guy and have him do it in half the time while I am watching and learning...

Very little overhead, as they have their tools, they don't maintain business location and don't pay rent... Of course, they were lacking some of the things that the big boys have, like big lifts, or some heavy machinery but a lot of work can be done without those big things...