Community Forums

FunCyzd · 09-30-2021, 08:56 AM

Not sure if this is the correct spot, so feel free to correct me. This is in the world of Class A diesel pushers...

What are people's experiences around parts markups? I have mine in for annual maintenance and some repair and was quoted some costs on addressing them which seemed awful high. Looking thru the estimate and a few spot checks, parts markup were 30-50% over retail prices online. In one case, charging $400 for a $300 part (they happen to call out the part number and where they were going to order from so I was able to directly compare) that I could easily go pick up locally or ship same day. When I asked about the markup, they just said they needed to order from reputable parts suppliers, etc and then after pressing harder they explained they did charge a markup on any parts they ordered.

I get making some money, but I was curious on others' experience. FWIW this is in the midwest, at a truck center with multiple regional locations and we are talking markup over retail on the same part, at the same location that sells to the public. This same invoice also had line items for diagnosing the problem, labor, shop supplies, etc.

Not necessarily looking for advice or arguments, just experience on if others had experienced this same level of markup and is standard, or if this just life with a large RV

Thanks.

Old-Biscuit · 09-30-2021, 09:12 AM

Sure there are markups..........EVERY Retailer does it
Grocery stores, Electronics stores, Drug stores, Dept. Stores and Auto parts/Repair stores etc

It's been going on forever.

25%-30% markup is common

FunCyzd · 09-30-2021, 09:42 AM

Quote:

Originally Posted by Old-Biscuit

Sure there are markups..........EVERY Retailer does it
Grocery stores, Electronics stores, Drug stores, Dept. Stores and Auto parts/Repair stores etc

It's been going on forever.

25%-30% markup is common

Your examples above are typical of wholesale vs retail markups, but yes, I agree, markups are built-in as means to ensure a margin/profit over direct costs as goods travel down the chain. What I am specifically asking is for experience in our world of RV parts and repair and what markups people have seen over retail. I am not even talking price shopping, substituting cheaper parts, etc. I have recent invoices and have called the exact same place and experienced markups 30% over retail. Just curious to see of this is the norm in RV world.

Old-Biscuit · 09-30-2021, 11:48 AM

YES...it is the NORM and not specific to RVs

Take your Car/Motorcycle/Pickup Truck in for repairs....

FunCyzd · 09-30-2021, 12:57 PM

Quote:

Originally Posted by Old-Biscuit

YES...it is the NORM and not specific to RVs

Take your Car/Motorcycle/Pickup Truck in for repairs....

Thanks for your recent, specific, relevant examples.

For what it is worth, I do have kids who drive crappy cars and from my experience, it is absolutely not normal to pay retail + 30% on parts for repairs. Hence my question to this community specific to RVs.

donr103 · 09-30-2021, 01:09 PM

It's called capitalism, the American way.. you should see how much they get on kick back.. if they buy certain amount of parts, they get 3 to 10% kick back at end of yr..
I was at a ford dealer and watched parts dept switch out AutoZone parts into ford parts boxes.. and peeling off labels.. you better go look on your parts and see if they are what you told them to put on..
Next time do it yourself...
Good luck and keep us posted.. oh you should see the mark up on parts.. normally up to 1,000%.. yes 300.00 parts cost less than 30.00 or less To make in China..

FunCyzd · 09-30-2021, 02:17 PM

Maybe I need to re-phrase this, my apologies if I wasn't clear initially...

I just received a quote from a repair shop. It seems that their prices are much higher for parts then I can find online for the same identical part, at the same supplier.
For example:
turbo is ~1800 from the manufacturer's local dealer, the shop is charging over $2100 for it...the dealer is directly across the street from the repair shop.
Air filter/housing is $307, when going to Carquest (they have the unique carquest part number on the estimate), the shop is charging $403.

Before I jump to the conclusion the shop is trying to take advantage of anyone, I was curious if others had recent experience similar to mine, or if this is just one specific shop trying to make a significant profit on parts they purchase. If anyone has any recent experience, I would love to hear it.

Thanks!

Tha_Rooster · 09-30-2021, 02:26 PM

Quote:

Originally Posted by FunCyzd

Maybe I need to re-phrase this, my apologies if I wasn't clear initially...

I just received a quote from a repair shop. It seems that their prices are much higher for parts then I can find online for the same identical part, at the same supplier.

For example:

turbo is ~1800 from the manufacturer's local dealer, the shop is charging over $2100 for it...the dealer is directly across the street from the repair shop.

Air filter/housing is $307, when going to Carquest (they have the unique carquest part number on the estimate), the shop is charging $403.

Before I jump to the conclusion the shop is trying to take advantage of anyone, I was curious if others had recent experience similar to mine, or if this is just one specific shop trying to make a significant profit on parts they purchase. If anyone has any recent experience, I would love to hear it.

Thanks!

I believe it’s called free enterprise. You get estimates up front you either agree or move on.
If I was a repair shop I no would mark up around 30% also sounds normal.

K Charles · 09-30-2021, 03:02 PM

If the parts department at the dealership doesn't make a profit, why would they keep it open? If they didn't have a parts department they wouldn't have a repair shop. Why would they want to give parts away at cost?

Old-Biscuit · 09-30-2021, 03:17 PM

YES it is the norm

Take your kids whoopdie into a Repair shop and check the markup

HopsBrewster · 09-30-2021, 04:11 PM

Of course they mark it up. That's how business works. They have to pay their overhead and make a profit. They aren't in business just for the fun. Some shops will mark it higher than others, some parts lower than others, depending on what the market will bear in their area or even the whims of the shop owner. Shop around.

Most shops will buy their parts from wholesalers, not retailers. Wholesale cost is usually much less than retail, but sometimes the part can only be found at a retail store. A 30% markup on a retail cost is actually very reasonable. Markup from wholesale is usually rather more.

The above example of the Ford dealer putting Autozone parts in Ford boxes is (hopefully) rare, and most certainly immoral and likely illegal. If you ever find such the case, report it and spread the word loudly.
But don't complain of a business trying to make an honest profit.
You could simply go buy the part yourself and have the shop install it for you, but you will often find there is a surcharge for installing your own part.

computerguy · 09-30-2021, 06:59 PM

I am kind of surprised at this question. Then I remind myself I am old and owned multiple businesses in different industries until I sold them and retired.
Yes, mark ups are normal and expected.
If you want the discounted price you can install it yourself after you order it. You can shop around for a service business that will install it with the parts you order. But then if the part is wrong, fails prematurely, guess what? The fix is then on you and you will pay for the time to uninstall and reinstall. I never included labor for warranty items if I installed a customer purchased item.
There is a reason for markup. It takes time to order, receive, confirm, handle returns, shipping, and so on.
Call it capitalism or what not. It is normal.

donr103 · 09-30-2021, 07:19 PM

If you spend as much time.. buying parts as I do.. in small town.. you notice a few things.. like who works where.. the cars the workers drive.. and have you ever wondered why big box auto parts stores.. don't have marked cars.. and after a while I noticed that bb. A/p stores stop labeling their products.. so now it's harder to see just where parts are sourced.. just saying.. it could happen.. I was Hoping maybe someone asked dealer to use cheaper part because O em. Was too hi for them.. and maybe they were packing back bad one for core.. but their was a large Pyle they were working on, in back..
Of course it's well know.. the big vehicles out source their parts.. I wonder.. do they get them from same place.. you don't see parts manufacturer everywhere like in old days.. sourced all in China or Mexico ? Can't be too many suppliers there.. then in college.. I was introduced to cost accounting.. and where vehicles manufacturer actually get paid to place their parts on .. big box grocery stores get paid to sell products.. and for space in stores.. the shelves on the end.. cost more.. to supplier.. same with vehicles..
Just one old man's opinion..
Ask repair place.. if you sourced parts.., will they install?? That would be interesting..
Good luck and keep us posted

**NLOVNIT** · 09-30-2021, 09:01 PM

Nope, not taking advantage. As posted earlier, it's capitalism.

Naively, I let the dealer supply my AquaHot maintenance kit when it was time for that procedure. They charged me over $400 for it. I complained to the service manager when I found I could get the exact same kit direct from AH for, I think, around $250. I was told that was standard mark up. To which I replied I'd be providing my own kit in the future.