Why do auto repair shops have to mark up parts by 2.5x

[ranchdog]

I had to have my F250 front wheel hub bearing replaced and for a $175 part (price found at several sites, same brand etc.) they charge $440. I mean really I am already paying the Labor of $220.

I guess maybe they are trying to say their labor rate is cheaper than a dealership and maybe it is. I bet the dealership jacks up their parts too I don't know. This shop does great work and they stand by their work for 2 years 24K miles so I like the shop. They recently fully replaced my leaking radiator that they had done about a year ago and didn't charge me a penny.

Just wondering what is up these days. I can see a 30% mark up but wow almost tripling the price. And its not just this shop. Why not just raise your labor rate to what it takes to make a profit but I guess that would look too crazy so jack up a simple part by astronomical prices.

Oh well, Rant over

Ranchdog

[2014FusionM]

That's why I have started doing a lot of the repairs myself, within reason.

I change my own oil, brakes, fluids, I have even changed a radiator or two.

[RR 314]

Just the way it is. Don't try and buck the system. :-)

On top of that, most shops charge "book time". The job takes 45 minutes but this nebulous "book" or computer these days allows for 2.5 hours.

[bwssr]

did you price the dealer?...LOL

[Traildust]

I had to have my F250 front wheel hub bearing replaced and for a $175 part (price found at several sites, same brand etc.) they charge $440. I mean really I am already paying the Labor of $220.

I guess maybe they are trying to say their labor rate is cheaper than a dealership and maybe it is. I bet the dealership jacks up their parts too I don't know. This shop does great work and they stand by their work for 2 years 24K miles so I like the shop. They recently fully replaced my leaking radiator that they had done about a year ago and didn't charge me a penny.

Just wondering what is up these days. I can see a 30% mark up but wow almost tripling the price. And its not just this shop. Why not just raise your labor rate to what it takes to make a profit but I guess that would look too crazy so jack up a simple part by astronomical prices.

Oh well, Rant over

Ranchdog

They probably have vendors that they buy from. Most shops are not gonna spend time searching the internet for the cheapest price. The supply house has it in stock and delivers on their daily parts run. Sounds do like they have great customer service and warranty work too.

[flywise]

Buy the part yourself next time and take it to the shop to be installed.
No where does it say they have to buy the part

[bboswell]

That's why I have started doing a lot of the repairs myself, within reason.



I change my own oil, brakes, fluids, I have even changed a radiator or two.

I recently did the math on DIY oil change and the cost to have it done. I then spent the extra $6 to have it done...

[bboswell]

I had to have my F250 front wheel hub bearing replaced and for a $175 part (price found at several sites, same brand etc.) they charge $440. I mean really I am already paying the Labor of $220.



I guess maybe they are trying to say their labor rate is cheaper than a dealership and maybe it is. I bet the dealership jacks up their parts too I don't know. This shop does great work and they stand by their work for 2 years 24K miles so I like the shop. They recently fully replaced my leaking radiator that they had done about a year ago and didn't charge me a penny.



Just wondering what is up these days. I can see a 30% mark up but wow almost tripling the price. And its not just this shop. Why not just raise your labor rate to what it takes to make a profit but I guess that would look too crazy so jack up a simple part by astronomical prices.



Oh well, Rant over



Ranchdog

I would take your part quotes and discuss this with the shop and unless there was a billing error I would look for another shop.

[ranchdog]

Just the way it is. Don't try and buck the system. :-)

On top of that, most shops charge "book time". The job takes 45 minutes but this nebulous "book" or computer these days allows for 2.5 hours.

Yes, that "book time" seems to be part of the equation for sure and maybe the book time is just not enough for them to do the work, pay for all the tools/equipment they need to make a profit. This book time has history of some sort as a way of not screwing people over, so now they seem to use parts as a way to jack up the price.

Like I said I like this shop, they do great work. I know I am going to pay more big time for the parts. I did not have time to fix it myself, I knew what was coming.

[Radar]

I had to have my F250 front wheel hub bearing replaced and for a $175 part (price found at several sites, same brand etc.) they charge $440. I mean really I am already paying the Labor of $220.

I guess maybe they are trying to say their labor rate is cheaper than a dealership and maybe it is. I bet the dealership jacks up their parts too I don't know. This shop does great work and they stand by their work for 2 years 24K miles so I like the shop. They recently fully replaced my leaking radiator that they had done about a year ago and didn't charge me a penny.

Just wondering what is up these days. I can see a 30% mark up but wow almost tripling the price. And its not just this shop. Why not just raise your labor rate to what it takes to make a profit but I guess that would look too crazy so jack up a simple part by astronomical prices.

Oh well, Rant over

Ranchdog

They are covering their warranty with the mark up. If the hub fails they have to take it off and replace it, the technician still gets paid for his labor. If your happy with the shop then stay with it. Sometimes peace of mind is worth something.

I do most maintenance myself, and some light work.

[2014FusionM]

I recently did the math on DIY oil change and the cost to have it done. I then spent the extra $6 to have it done...

You must not put full Synthetic in your vehicle then...compare the 35$ to the 80 something $'s

[Radar]

Buy the part yourself next time and take it to the shop to be installed.
No where does it say they have to buy the part

Most shops hate this idea and some in my area will not do the work. As soon as that part fails and has to be redone another labor charge is coming. Alternators, starters and ac compressors can be bad from the get go, especially the cheap ones.

[bwssr]

You must not put full Synthetic in your vehicle then...compare the 35$ to the 80 something $'s

were can I get 13 quarts for $35?

[Black-N-Red]

A lot of shops charge list price or marking up 110-150%, Which in my opinion is crazy. I mark my parts up 60% & make plenty of money. Just as a comparison of your truck was 2wd, I would would have sold the part for $388. Yes there is a cheaper bearing but I've had problems with them. Labor would have been $120.

[2014FusionM]

were can I get 13 quarts for $35?

Well I only need 8 quarts for my truck and 4.5 for my wife's car. I just wait till auto zone has a sale and buy the oil whether I need it or not. I picked up the other day I believe it was Pennzoil full syn. and STP 10k filter for 20$ so I bought two. 10 quarts 2 filter for 40$.