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Old 08-14-2014, 09:07 PM   #1
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How much should mark up on parts be

We had to have a new leveling jack installed on our RV. We have an extended warranty with Good Sam, which has been pretty good. When we went to pick up the RV today, the service department handed us a pretty hefty bill. Looking at it, I felt we weren't given enough money from the warranty company for the jack. When I called Good Sam, they said the dealer wouldn't submit the invoice for the part & they (Good Sam), pay 20% over the invoice cost. Best I can tell, they charged us almost double for the jack. It was a power gear jack & we were charged over $900 for it. Anyone have any idea what the average markup on parts should be. Needless to say, I'll never go back to this place again.

Karen & Collins & Snuggles (our Shi-pooh)
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Old 08-14-2014, 09:23 PM   #2
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I used to have an account at an Auto Parts store and 30% to 50% discounts were common. 50% discount equals 100% markup.

A Winne dealer wanted $35 for a parking light, found out the car it came from and bought it for $5.35.

I had 2 power gear jacks replaced 2 years ago, parts and labor was almost $2000.

When you say RV (Corvette, Jaguar, etc.) the prices seem to triple or more.

Wayne & Roberta and Maggie the Miracle Dog
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Old 08-15-2014, 09:01 AM   #3
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Some RV dealers make it a practice to charge huge mark-ups. For that matter, so do many other shops. Insurers have databases that show actual parts costs and also the standard (flat rate) labor for all common repairs, and that's all they will pay. Any extra is between you and the shop - the repairs insurer doesn't negotiate for you.

You can argue with the shop service manager that they are grossly overcharging you and maybe they will relent a bit. Or maybe not. In any case, try to find a shop that isn't so aggressive in pricing.
Gary Brinck
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Old 08-15-2014, 09:59 AM   #4
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The previous owners got a replacement voltage regulator that cost them $100 just for the part. We found the same part at O'Reily's Auto parts store for about $25. Easy change out too for Thom to do it himself.
Thom and Christine having fun in a 1993 Monaco Crown Royale Signature Series 40ft 300hp RV. Towing a Fiat 500 Abarth and a Harley.
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Old 08-15-2014, 10:04 AM   #5
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100% markup is pretty standard from my experience.
Getting there is half the fun - take your time and enjoy the scenery.
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Old 08-15-2014, 10:16 AM   #6
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100% mark up on parts is pretty common in most service industries. From the servicers point of view it costs money to stock parts, it takes labor to research parts, so the simple rule of thumb of a 100% markup makes sure all of the expenses are covered as well as some profit.

The internet has made it easy to find/identify most parts and do-it-yourself. You can save a lot of money.
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Old 08-15-2014, 10:26 AM   #7
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Sorry to say,what ever we will pay!
When you label any thing as RV,MARINE, or POOLS.
the price goes,up. What ever the market will bear.
John and Susan 2013 Winnebago Journey 40U-41'.
2011 Honda CRV Toad Our rescue dog Annie.Full timing since 07-01-2011. No sticks and bricks.
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Old 08-15-2014, 10:47 AM   #8
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In Texas we call that the Aggie 2% markup. If it costs you a dollar, you sell it for two! The chances of the dealer working on the pricing with you is slim and none and slim left town! AND last but not least it may come with the Oklahoma warranty, 90 feet or 90 seconds which ever comes first.
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Old 08-15-2014, 02:30 PM   #9
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Originally Posted by Road King View Post
In Texas we call that the Aggie 2% markup. If it costs you a dollar, you sell it for two! The chances of the dealer working on the pricing with you is slim and none and slim left town! AND last but not least it may come with the Oklahoma warranty, 90 feet or 90 seconds which ever comes first.
I agree w/ the 90-90!!
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Old 08-15-2014, 07:06 PM   #10
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I work in the parts department of my dealership and our markups are nowhere close to 100%. As far as negotiating prices, we do it every day. If you have bought a RV from us it is an automatic 10% discount. Do alot of shopping with us, our Parts Manager will more than likely work with you.

We try our best to keep customers coming back.

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Old 08-16-2014, 08:25 AM   #11
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Thanks everyone for all your information. I guess the thing that made me so angry was the fact they wouldn't even submit their invoice so we could get that + the 20%. They knew when we brought the RV in we had Good Sam EW & they should have told us if they weren't going to cooperate. If they had just submitted the invoice & gotten the price from GS, I could have gone back to GS & argued for more. It also seems that ever since GS & Camping World hooked up, GS has not been so good about what they will pay for labor or parts, & I refuse to deal with Camping World. I don't know where they get their techs, but I've never had good service there. It's really hard to find good RV service. l'll never deal with these people again because they act like they're hiding something, so I'm going to give them a bad review online. That seems to be my only way of getting back at them.
Karen & Collins & Snuggles (our Shi-pooh)
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Old 08-16-2014, 09:13 AM   #12
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Iím sure my answer wonít be popular, but I was in the service business for a long time and I know both sides of the coin. Normal margin on parts is 40%. Take the wholesale cost and divide by .6 to determine the retail price. Thatís how much is needed to stay in business. As far as submitting the invoice, thatís nobodyís business. What if he traded something for it? Youíd then have to determine the value of the traded item. Itís none of the insurance companies business, or anybody elseís what he paid.

Now, what should be done is that before any service work is performed an estimate should be provided. There will be isolated cases where additional service is discovered and needed after repairs begin, but that is rare. When that happens a phone call should be made and the customer should be shown exactly what the problem is. If an insurance company is involved, the adjuster will be called in. Experienced adjusters have seen this and will know how to deal with it.

What gives Good Sam the right to determine what they should pay? Can I call Good Sam and say ďI only pay $X amount for insurance and you HAVE to provide it for that cost?Ē No, Good Sam is trying to avoid their obligation and your problem is with them. Who do you suppose made more money last year, Good Sam or the repair facility? Do a little online research about Good Sam and the MANY complaints against them.

Running a business isnít easy and while there may be the occasional crook, for the most part the average business works hard to be honest and fair. They just canít survive any other way.
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Old 08-16-2014, 10:51 PM   #13
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While not RV Parts, I just retired as parts mgr for a large John Deere dealership, we were happy with 38% at the end of the year. This was around 100% for small items, (nuts,screws, less than 10.00 cost) down too cost plus 15% from Deere for warranty parts. The average part was around 32%. This is pretty standard with farm machinery and parts houses, such as NAPA. Not big money per piece, it does require volume to make money. And yes, I would negotiate if someone was going to drop 5k on a hyd pump for their combine.
Jimmy & Becki Cullipher, Stuttgart AR
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Old 08-18-2014, 07:22 PM   #14
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People seem to have good experience with the Good Sam EW by bringing the unit to Camping World. Maybe that is what they are banking on, Good Sam/Camping World keeping everything in house.

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