Reasonable Parts Markup?

[RiverCity911]

Hello one and all,

I'm looking for a little sanity check. I have an estimate from a Porsche shop with a total of about $7,400 in parts (w/o their labor costs) for them to do the work. Using the part numbers provided on the estimate, I've compiled a total using Pelican Parts of $5,600. Would it seem reasonable that the mechanic would be tacking on $1,800 or ~30% over the Pelican "retail" price? I thought lic mechanics would get a break on the retail price (somewhere between cost and retail, maybe wholesale), and then tack on his margin to it. 30% over the standard Pelican prices seems like a lot. Am I correct or just too optimistic?

The parts are everything from camshaft, valves, guides, cyl & pistons, clutch, etc. And, don't get me started on how I got myself into this. My $18K treat is quickly turning into a $28K pain.

Thanks,
Chris

[Don Plumley]

It's probably not outrageous. Pelican is a discount price - go to the dealer and ask for their prices. Or quote Sunset Porsche in Oregon. You might shop shops, and given the economy, might find a little less markup. But for $2K, you want the best mechanic, not the cheapest.

[38D]

The better independent shops out there do not mark up parts much if any. I'd suggest you go elsewhere.

[Oracle]

The mechanics don't shop around, they pass the list to the supplier and that's the middle man responsible for the shopping. The mechanic usually put around 10-15% on top as their share. At the end of the day the overhead is passed to the customer, you or me :-(

Ask if you can bring the parts... Just have a clear understanding on how things work if something brakes later on because he didn't put the parts.. (Usually this is the deal breaker)

Good luck!

[RiverCity911]

Thanks for the info.

I figured Pelican could offer better prices; it seems to be SOP for internet based retail of all types (Porsche parts to hockey equip). If Pelican offers the best prices, why doesn't a mechanic stock his inventory using Pelican? Maybe that is not allowed or something.

Anyway, 95% of the parts are already in the car. I had the mechanic open her up for a $4K engine reseal, and the $ started flowing. I relatively trust the mechanic (he worked on my BMW long ago). I just wish I could have gotten a one-time list in the beginning of "this is wrong, this needs to be fixed", instead of the piecemeal way this has developed. I realize this is just me griping. I guess I just need to learn and work on it myself.

Anyway, thanks again for the input.
Chris

[Don Plumley]

Is he a Porsche specialty mechanic, just a general European marque wrench?

[john walker's workshop]

Originally Posted by 38D

The better independent shops out there do not mark up parts much if any. I'd suggest you go elsewhere.

you're dreaming.

[john walker's workshop]

Originally Posted by Oracle

Ask if you can bring the parts... Just have a clear understanding on how things work if something brakes later on because he didn't put the parts.. (Usually this is the deal breaker)

Good luck!

deal breaker, because the shop will be doing the same job, less the profit he would have made on the parts. what's wrong with this picture?

[dad911]

I get this all the time in my business(not auto related). It's fair for a shop to profit on the time expended, and the BS in ordering all of these parts, coordinating shipping, paying for shipping and returns, and outlaying the cash.

Would you rather see parts at cost, then a line item on the bill for $1800 (14 hours @100) plus shipping, plus overhead, for ordering expenses?

[RiverCity911]

Originally Posted by Don Plumley

Is he a Porsche specialty mechanic, just a general European marque wrench?

The shop is listed in the local PCA mag as a BMW/Porsche shop with "factory trained technicians". It's a fairly reputable place. So, short of checking actual Certs of Completion, I'll assume it's true.

Thanks, again.

[38D]

Originally Posted by john walker's workshop

you're dreaming.

What's your cost on a set of new 964 Ps & Cs

[john walker's workshop]

i don't sell parts through this site. pelican sells those.

[38D]

Originally Posted by john walker's workshop

i don't sell parts through this site. pelican sells those.

I wasn't asking for a quote. Anway, I paid $2400 for a set of 964 Ps & Cs thru the indy shop I use. EBS sells them for for $2600.

[john walker's workshop]

it's poor taste to use pelican's website to advertize other vendors products, ya know.

[38D]

Originally Posted by john walker's workshop

it's poor taste to use pelican's website to advertize other vendors products, ya know.

Whose products am I advertising? EBS? I was only using that for comparison purposes as Pelican does not easily list 964 Ps & Cs (at least I couldn't find it).

Btw, thanks for continue to skirt the issue and not answer the original question. IMO a 30% markup is very high on parts.

[john walker's workshop]

just trying to keep you from getting banned. holler if i can be of any more help.

[lilacRS]

I've always expected that all parts get marked up by the shop, I guess the issue you have the percentage of the mark-up. In addition to the time sourcing the parts and to keep the lights on in the shop, the mark-up has to cover potential warranty issues as well with the part.

It would be an interesting concept to go with the home contractor business model as suggested by dad911. Total the labor, and actual costs, then put a 20% markup on the final bill for profit and overhead.

In any case, even with the mark-ups, its still cheaper than going to the dealer, plus I like going to shops where I know the guys working on my car.

[aigel]

I don't think 30% is outrageous. Especially considering that PP has very competitive prices.

You are comparing buying wine in the restaurant with buying it at BevMo and drinking it at home. I have no experience with running an automotive shop, but 30% over PP probably is 20% over his supplier, which isn't unreasonable.

Like you said, do your own work and be done with it. It is much nicer if you are in there yourself seeing why you need this and that on top of what you went in for. We are all here to help!

George