Hi all I just opened a mechanic shop and had a question for all you mechanics out there. I’m young with 5 years in the business working as a mechanic also certified and graduated in this field. I just opened a mechanic shop and don’t really know what my pricing should be per hour. How do you generally quote your jobs? Is it by hour? By job? If I get a quart of oil for $2 what should I sell it for? 30% markup? 40%? Any advice will help. Also I know it depends on the area, if it helps, I’m located in the north east.
hey there! congrats on opening your shop. pricing can be tricky, but generally, it’s good to consider your costs and desired profit margin. many shops quote by job, and a 30-40% markup on parts is common. also, take into account your location and local competition. good luck!
Australian mechanic here, opinion from an affluent area, don’t know how it relates to the US, but markup on parts is 30%, fluids is 40% and hourly rate is $150AUD (about $100 US)
Always charge book time, unless it’s a good customer and it actually took less time. If you are going to charge less, make sure you show it as a discount on the invoice, do not just make the invoice less.
You can always call local shops and ask what their labor rate is, then base yours off of that information. I would quote based off of book times. Usually alldata times are a bit low, so it’s not uncommon to add a small amount.
Parts is dependent on what your cost is, versus suggested list. Obviously all parts are different. Generally speaking I like to see around a 50-65% mark up, but again this depends on what your cost is. Not all parts i can get that on, dealer parts are usually 20-25%
Fluids probably only 15-25% mark up. Hard parts 50-90% mark up. Remember, you need to factor in future warranty issues as you will be the one eating the cost. So don’t hesitate to charge accordingly on every job. If they balk at your pricing, then maybe you weren’t the right shop for the client. Stand up for yourself and the trade💪🏻.
You’re smart if you’re asking these questions. Mark up of 30% is reasonable for most stuff but some things are okay to mark up much more than that. Trust your judgement, fluids shouldn’t be where you make your money. Brake pads, rotors and radiators should be more of a money maker if that helps give an idea. Hourly rates can vary a lot depending on where you’re located and what you’re specializing in, if you have people in the business local to you don’t be afraid to call and ask what they charge per hour. Be up front and honest and for the most part, guys in the business will try to help you and the ones who don’t are scared you’ll steal their work or something and probably aren’t all that successful anyway. Congrats for taking a risk and betting on yourself, I’m rooting for you.
Wait… wait… You’re getting a quart of oil for $2?