Should garages make money on parts?

[davymead]

Any vehicles with specific oil requirements at our Indy, are purchased from a Main Dealer, ensuring correct specification and removing potential problems.

 

[Fastcar155]

I supply my own oil for service to make sure they put the right oil in, not to save money as i buy it from MB
Too many c63s on here with the wrong oil used

Hi , very understandable.

 

[dark1stu]

yes but it sound reflect the time spent ordring the part , also rememer when the fit a part with a 12 month warrnty , if it breaks they have to remove the part and re fit it at no charge to you this is built in to the mark up , we charge a mark up on parts , usaly 30% i dont work in the auto trade but most if not all busness charge somethng to cover the costs

 

[Tofufi]

I don't use garages, but it seems reasonable for them to put a markup on the price of parts to cover their time spent ordering the parts, and dealing with the issues when the wrong part inevitably turns up.

 

[Dryce]

I don't use garages, but it seems reasonable for them to put a markup on the price of parts to cover their time

Except they also charge for 'labour' on a time basis.

 

[Tofufi]

Except they also charge for 'labour' on a time basis.

I'd always assumed that was the labour spent fixing the car.

I do all work on my cars myself, so not too familiar with paying for labour

 

[markjay]

Except they also charge for 'labour' on a time basis.

I think he meant the time it takes to deal with ordering, storing, and supplying the parts (not to mention the cost of the staff and premises required to deal with parts store), while you are referring to the labour time for fitting the parts.

They will obviously need to have a markup on both, given that the customer can just buy the parts at the parts counter and have them fitted elsewhere, or they can (for example) supply their own oil for a service.

 

[optimusprime]

There have been garages i visited,, not many i might add , and i have sked them if they would use the oiland filter that i supply . Only to be told, sorry no only our recomended oil for your car --- so its good bye .

 

[markjay]

There have been garages i visited,, not many i might add , and i have sked them if they would use the oiland filter that i supply . Only to be told, sorry no only our recomended oil for your car --- so its good bye .

The recommended oil isn't the issue as such, because you could obviously supply the exact same make and model of oil that the garage is using.

Quite a few businesses (not just garages) will not fit parts supplied by the customer, either for commercial reasons, or for practical ones. Some obviously will be happy to do this, but others won't.

Around 15 years ago, a customer called us saying he bought a WiFi Router and a WiFi range extender from PC World, and if we could install it for them in their London office. We dispatched an engineer to site, who couldn't get it the range extender to work with the WiFi Router, and spent over an hour on the phone with the manufacturer's support helpline, only to be passed-on to one of the manufacturer's product specialists who confirmed that this particular model of WiFi Router was not compatible with that particular model of WiFi range extender (even though they were both made by the same manufacturer). We explained it to the customer and submitted an invoice for the engineer's time.

The customer refused to pay, saying that we "should have known that these two products weren't compatible", and that if we weren't familiar with these products then we "shouldn't have accepted the job in the first place" (the fact that the manufacturer's own support team didn't know this, seems to not have mattered to the customer....). Lesson learnt... once bitten, twice shy.

Yes, this one may have been a particularly difficult customer, but the fact remains that fitting customer-supplied parts can open the door to a whole range of undesirable scenarios.

So when a business say that they won't fit customer-supplied parts... I don't hold it against them.

 

[davymead]

The recommended oil isn't the issue as such, because you could obviously supply the exact same make and model of oil that the garage is using.

Quite a few businesses (not just garages) will not fit parts supplied by the customer, either for commercial reasons, or for practical ones. Some obviously will be happy to do this, but others won't.

Around 15 years ago, a customer called us saying he bought a WiFi Router and a WiFi range extender from PC World, and if we could install it for them in their London office. We dispatched an engineer to site, who couldn't get it the range extender to work with the WiFi Router, and spent over an hour on the phone with the manufacturer's support helpline, only to be passed-on to one of the manufacturer's product specialists who confirmed that this particular model of WiFi Router was not compatible with that particular model of WiFi range extender (even though they were both made by the same manufacturer). We explained it to the customer and submitted an invoice for the engineer's time.

The customer refused to pay, saying that we "should have known that these two products weren't compatible", and that if we weren't familiar with these products then we "shouldn't have accepted the job in the first place" (the fact that the manufacturer's own support team didn't know this, seems to not have mattered to the customer....). Lesson learnt... once bitten, twice shy.

Yes, this one may have been a particularly difficult customer, but the fact remains that fitting customer-supplied parts can open the door to a whole range of undesirable scenarios.

So when a business say that they won't fit customer-supplied parts... I don't hold it against them.

A perfect example unfortunately as to what can happen.
In truth, it’s rare for a customer to ask if I’m honest, but we are asked on occasion and when we state that we’ll only fit parts supplied by us due to our warranty, most will understand why. One thing I’ve never figured mind, is why occasionally people think it’s seemingly wrong for any business to charge appropriately for their time, or expertise.

 

[Trickythemerc]

The two garages that I use for my CLK will fit any parts that I supply. When it comes to servicing the vans I let them supply the parts etc because they are still under warranty. If they are making a few quid on them I am happy enough, they don't charge for disposal of used oil and filters like a lot of places do.

 

[optimusprime]

Markjay it is for me, because i use a specific oil, and filter, not a filter with horse hair in that the garage want to fit from India,, or the old oil that is ued that has been refined and returned in 25 gallon drums for resale . Dont tell me it is not done, i know it is still going on ..

 

[Tuercas viejas]

On the rare occasions when we will accept customers' parts, we disclose beforehand the transaction will attract a 15% to 20% "corkage fee" surcharge, to cover the loss of profits on those parts.
Tuercas vejas

 

[grober]

MB dealers normally buy their oil in 55 gallon drums

 

[markjay]

Markjay it is for me, because i use a specific oil, and filter, not a filter with horse hair in that the garage want to fit from India,, or the old oil that is ued that has been refined and returned in 25 gallon drums for resale . Dont tell me it is not done, i know it is still going on ..

Fair point, but how you can be sure that they actually used the parts and oil you supplied...?

I think that the point is that you either trust the garage, or you don't; but if you don't, then be aware that they will be far more experienced in these sort of things than you, and if they are dishonest then they will find a away to scam you, even when you think you're keeping a watchful eye. Best thing is to completely avoid any establishment that you don't fully trust. My view...

 

[Tuercas viejas]

MB dealers normally buy their oil in 55 gallon drums

Yes we do, and MB barreled 229.52 is going short, so we have stocked up for a three months supply.
Normally we use a barrel per month on average, so we cleaned out our MB wholesale supplier with three barrels at $1360 a pop and another auto supplier of Motul brand equivalent at $1460 a barrel .
Two of our local MB dealers have no oil for quick lubes & drop ins , so we are get getting referrals for basic A,B , & C services.
In consequence I have dibs on some more barrels of 229.51 Mobil 1 ESP as an emergency stock from a wholesale supplier in Denver .
Not looking good and don't ask me about MB A/C compressors at the moment --No stock & back ordered for 90 days .
Tuercas viejas

 

[Dryce]

I think he meant the time it takes to deal with ordering, storing, and supplying the parts (not to mention the cost of the staff and premises required to deal with parts store), while you are referring to the labour time for fitting the parts.

Well if the markup is to deal with these sorts of issues then why would the markup be a proportion of the cost of the part - and not capped.

So if you have a £800 ECU vs a £80 spring - and both presumably have a similar % markup - then does the spring take any more or less effort to order? Does it require more staff and premises?

 

[Tuercas viejas]

Well if the markup is to deal with these sorts of issues then why would the markup be a proportion of the cost of the part - and not capped.

So if you have a £800 ECU vs a £80 spring - and both presumably have a similar % markup - then does the spring take any more or less effort to order? Does it require more staff and premises?

Don't forget depreciation on the part(s) sat on the shelf.
Tuercas viejas

 

[markjay]

Well if the markup is to deal with these sorts of issues then why would the markup be a proportion of the cost of the part - and not capped.

So if you have a £800 ECU vs a £80 spring - and both presumably have a similar % markup - then does the spring take any more or less effort to order? Does it require more staff and premises?

This is a valid point, though it isn't specific to the topic of this thread.

For example, if PC World sell laptops ranging in price from £300 to £3,000, should their profit be set a percentage of their cost, or a fixed amount per laptop sold?

I guess that the system where retail is priced as trade cost plus a percentage margin is age-old and common along all sectors of trade. But the fact that 'things have always been this way' does not mean that they can't be challenged.

However, specifically in the context of this thread, parts department at car dealerships are simply applying the same commercial model as everyone else (right or wrong).

 

[markjay]

Don't forget depreciation on the part(s) sat on the shelf.
Tuercas viejas

And loss - aka 'dead stock'. Not everything ends-up being sold to a customer - some parts eventually go as job lots.