How much markup is too much? - Vintage Mustang Forums
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post #1 of 47 (permalink) Old 09-06-2019, 08:35 PM Thread Starter
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Mad How much markup is too much?

Among other things I had a shop replace my cam with Edelbrock (2122, $207 on the Edel site) with timing chain (7820 $55 on Edel site). Upon looking at the breakdown of the bill I saw that they charged $425.56 for the cam and $124.46 for the timing set.

I expected a markup on them buying the parts but 118% markup seems excessive? BTW, they refuse to install 'customer parts'.

Whats your take on this amount of markup?


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post #2 of 47 (permalink) Old 09-06-2019, 08:42 PM
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Thatís anal rape.... just saying.



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post #3 of 47 (permalink) Old 09-06-2019, 08:44 PM
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I can't help you on this one. The only mechanic I've used in the last 20 years has only charged me his cost and will often ask me to purchase the parts myself. He makes his money on the labor. I think your guy is way out of line on those markups! It also depends on where he is purchasing the parts from.
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post #4 of 47 (permalink) Old 09-06-2019, 08:49 PM
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Thatís anal rape.... just saying.



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post #5 of 47 (permalink) Old 09-06-2019, 08:56 PM
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My take.

Work was not performed by a professional “speed shop” that had those parts in stock and would have charged you retail price + labor.

Not installing customer supplied parts is the mark of a corporate automotive repair “chain” whose aim is to take advantage of unknowing customers.
Most independent shops will install customer supplied parts but won’t warranty the work.
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post #6 of 47 (permalink) Old 09-06-2019, 08:58 PM
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most Chain owned places I know of in this business triple the cost on parts.
Not to offend but why not do it your self ? and used VMF for guidance
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post #7 of 47 (permalink) Old 09-06-2019, 09:02 PM
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post #8 of 47 (permalink) Old 09-06-2019, 10:06 PM
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That is an excessive markup . I sell parts to shops and mechanics and nobody i sell to
would have markup the parts that much . Did you not get an estimate before work was started?
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post #9 of 47 (permalink) Old 09-06-2019, 10:09 PM
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Maybe the prices he charged are Manufacturer's Suggested Retail or List price.
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post #10 of 47 (permalink) Old 09-06-2019, 11:01 PM
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What did they charge you for the labor?
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post #11 of 47 (permalink) Old 09-06-2019, 11:05 PM
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When you mark it up more than the customer is willing to pay...

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post #12 of 47 (permalink) Old 09-06-2019, 11:32 PM
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Generally, all it takes is one good raping at an auto repair shop to realize that you're better off investing those dollars in quality tools and supplies. Installation of customer supplied parts is entirely at the discretion of the shop. Some will, some will not. I don't blame the ones that don't, as sometimes you have no idea where those parts came from. If that part fails, the customer will badmouth the shop, so sometimes it just not worth it.

FWIW, if you do take it to anyone else, get a written estimate. By most state laws, they cannot exceed that estimate without your permission.

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post #13 of 47 (permalink) Old 09-06-2019, 11:36 PM
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Generally, all it takes is one good raping at an auto repair shop to realize that you're better off investing those labor dollars in quality tools and supplies.


Thatís my plan.....


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post #14 of 47 (permalink) Old 09-07-2019, 01:44 AM
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Not to justify their prices, but

If they would have bought it, installed it, marked it up a bit, etc. and 561 miles down the road, the cam snapped, would you expect them to replace everything for free, including other stuff that was broken?

Where would that cost be covered in their business "model"?

When I used to work for a large company that did some work, less than $2 billion a year, with the US and foreign military, I saw some of the contracts that came through. Every contract had "base" amounts that were charged. For example $50 to route the contract for review to all required departments, $250 for legal to review the contract, $100 for the military specification person to review any changes or exceptions or odd specifications called out in the contract, $100 (IIRC) for the required packaging and copies of all specifications, work orders, etc. that had to be submitted with the contract, and it went on and on, minimum charges associated with a contract. Now sometimes the contract was for $250,000,000 of a product spread over 5 years. Sometimes it was for the proverbial 1 specific bolt, or electrical component, or whatever. But when the Government submitted a 230 page contract to supply 1 bolt, it was NOT Home Depot time, and that is the type of item that showed up "PENTAGON SPENDS $1200 FOR A BOLT"

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post #15 of 47 (permalink) Old 09-07-2019, 07:58 AM
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I understand the business model, but that markup, which I've seen all over the place BTW, is just a way to get around the taxes and give the shop additional income. Not every job will require replacement. In fact, very few. And the shop will be able to return a defective part for credit. I had a transmission guy give me an estimate where he added $1k to a purchased rebuilt transmission price. I told him 'how can I buy one for $1k less than you?' He said, 'Hey, I have to make money.' I thought that's what the labor charge was for. Needless to say he didn't get the job. Also turned out to be two broke wires in the wonderful harness by Chrysler. And I had two transmission guys tell me the tranny needed rebuilding. Another nail in the coffin for not trusting other mechanics.

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