ST Alpha - "Where I work we use a 3x to 4x markup over the cost of an item to determine what we will quote as a sell price" (Reading a Post)

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In response to "STIS: What should the markup be for a part that a mechanic is replacing. I got quoted $469 for the exact same original I'm seeing online for $200/230." by zunk takes things literally

Where I work we use a 3x to 4x markup over the cost of an item to determine what we will quote as a sell price

Posted by JD (aka Jason Dean) Nov 3 '23, 10:11

FWIW, it's not so much to make something but as to way to cover the overhead associated with selling a part that we don't make in house.

So stuff like keeping the lights on.

Then somebody has to order the item

Somebody has to receive / place inventory the item

Somebody has to quote the item

Somebody has to review / enter the order

Somebody has to get the thing out of stock and package / ship it

Fingers crossed we're paying all those somebodys a reasonable wage and then all the taxes and so on associated with paying them

Oh and then there's a minimum item price which how you could end up paying $34 if you decide to order an o-ring from us

Responses:

I worked retail for years and this I under stand. This is NOT an auto parts store. This is an auto repair that will, of course, charge labor costs. -- nm - zunk takes things literally Nov 3, 10:17 4
- But labor costs cover, uh, well labor and to some extent a percentage of overhead but in that case like keeping the lights on - JD Nov 3, 10:24 3
  - and...how much does the shop markup the labor cost? mechanic gets 25 an hour, the shop charges 125 an hour -- nm - zeitgeist Nov 3, 10:58 1
    - 😏 - JD Nov 3, 11:21
  - Ok. Makes sense. -- nm - zunk takes things literally Nov 3, 10:25

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Where I work we use a 3x to 4x markup over the cost of an item to determine what we will quote as a sell price

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