: How much profit is there in shop charges?



airbalancer
02-03-04, 08:03 AM
How much profit is there in shop charge of $75.00?
After paying the mechanice, service adviser, service manger, bookkeep, 1.5% visa charges, passenger shuttle, building cost, heating, is there anything left for the owner.

Stoneage_Caddy
02-03-04, 11:39 PM
i know the big money is in parts , standard 75% markup on price of the parts that go in your ride that are bought at a duscount ..have seen as high as 200% markup

Ralph
02-04-04, 12:22 AM
There must be money in auto parts! Look at Belinda Stronach, she is a billionairre. (literally) She is running for the leader of the Conservative party and she runs the family auto parts company, and they supply parts to GM.

It must be profitable for the Caddy dealerships also because as of yesterday, ours is charging $72.50 per hour! It would be nice to find a little independant garage where they only charge for what has been done in servicing, instead of going by the book and charging an hour and half for what should only take one hour! Don't forget the "shop supplies" charge! When my dad ran a Gulf in the 1970's you couldn't get away with scams like these. A dentist can claim all his instruments he must buy, but an auto mechanic cannot claim his tools as an expense. (last I heard)

El Dobro
02-05-04, 12:38 PM
Rates vary by region. If you're located in a high tax area, you have to charge accordingly. Don't forget schooling for the techs and parts guys. GM doesn't do it for free. That has to be figured in. There's also no standard mark-up on parts. Some items actually have a very low mark-up. It again depends on what the region can support. The wholesale market is pretty much on a cost + set up. The competition is so high some dealers don't even bother with it anymore because they have to eat too many returns from body shops.

Blackout
02-05-04, 02:05 PM
I would say its all in how much you are willing to charge. I mean if your just starting out the smart thing to do is make some good parts or sell some good ones and charge very little on mark up and get the customers knowing you and then bump up the prices every so often.

catbert
02-07-04, 04:43 PM
How much profit is there in shop charge of $75.00?
After paying the mechanice, service adviser, service manger, bookkeep, 1.5% visa charges, passenger shuttle, building cost, heating, is there anything left for the owner.

Seems to me the sales volume that the fixed expenses are spread over would determine the bottom line. You also have to figure in charge-backs to GM for warranty work, legitimate or not. :histeric: