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Car parts are a sickening business...

Discussion in 'The Lounge' started by sled_dog, Dec 23, 2006.

  1. sled_dog

    sled_dog 1 ton status

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    We always bitch about what our parts department charges for parts. Half the time we lose jobs over either our labor rate(which is pretty well ridiculous), or our parts cost. Today I helped a friend diag that a truck he had needed an injector(6.0L piece of powerstroke junk), and got him the injector at my discount price. My price? $217 after tax. Over the counter cost? $450!!! My price is cost + 10%, so that means we are charging OVER 100% markup on those damn things! It really sickens me at times. But then again, the service department makes so little money anymore, we need to be subsidized by the profit from parts.... vicious circles.
     
  2. cbbr

    cbbr 1 ton status GMOTM Winner

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    The other side o it is that for the $200 they make on that part the owner covers employees to inventory it and sell it, a building to house it, advertisements, electricity, phones....

    Small businesses really don't make that much on parts when you take everything into consideration.
     
  3. beater_k20

    beater_k20 Banned

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    ours was 100% over cost, no matter what it was, OE or aftermarket, with 30% being the "internal" price for used cars, new cars, and employee cash sales. that is of course, unless you could get the supplier to send it over on a cash ticket. :deal:

    i talked to my old boss the other day, and the dealership went to 40% over cost for employee sales. so now, he buys his OE parts (that he cant get through his buddy at the AC Delco dealer) at wholesale price, using my name. the owners are amazed at how much money i spend there. :rolleyes:
     
  4. Confedneck79K30

    Confedneck79K30 3/4 ton status

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    our parts dept was tiered, some stuff 30% over, some 300% a torque convertor for an explorer was 140% i about vomited..
     

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