Parts Markup for Mobile Mechanics: How to Price Parts
Mark parts up on a sliding scale: a higher percentage on cheap parts, a lower percentage on expensive ones. The markup pays for your time sourcing them, the warranty you are now on the hook for, and the money you fronted.
Build your markup chart, free
Set your markup by part cost, punch in what a part cost you and get the sell price. Print the chart for the truck.
Open the parts markup matrixWhy you mark up parts at all
You spent time finding the right part, driving to get it or waiting on it.
You fronted the money and you eat it if the customer backs out.
If it fails, you are the one going back out. Markup is your warranty fund.
Every shop does it. Pricing parts at cost just tells customers you do not know the business yet.
Sliding scale beats one flat percentage
A flat percentage overprices expensive parts and underprices cheap ones. A sliding scale (often called a parts matrix) fixes that: a cheap sensor gets a big percentage because the dollars are small, a transmission gets a small percentage because the dollars are already big. Build yours in a few price bands and stick to it so every quote is consistent.
Customer supplied parts
You lose the markup and you inherit the risk. Most techs that allow it charge a higher labor rate for those jobs and put "no warranty on customer supplied parts, labor charged again if the part is wrong or fails" on the estimate the customer signs. Or just say no. Both are fine. Doing it for free with no terms is not.
Show it as a part line, not a secret
List the part, your sell price, and the labor separately. You do not have to show your cost. You do have to make the total clear before the work. Customers rarely fight a part price. They fight a surprise.
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Common questions
How much do mechanics mark up parts?
It depends on the part price. Cheap parts commonly carry a high percentage and expensive parts a low one. The point is a consistent scale you can defend, not a single magic number.
Do I have to tell customers my parts cost?
No. You quote a sell price. If a customer finds it cheaper online, that price does not include sourcing, warranty or the second trip if it is wrong.
Should I let customers bring their own parts?
Your call. If you do, charge a higher labor rate for it and get the no-warranty terms signed on the estimate first.
Is parts markup taxable?
In most states parts are taxable at the sell price. Rules differ, and some states tax labor too. Check your state comptroller or department of revenue.
Related: what to charge per hour, how to charge a trip fee, and all free tools for mobile mechanics.