Dealer mark up on parts when servicing your vehicle with them.

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2007 Mazda CX-9 Touring
What do you guys think is a fair percentage to mark up the price on parts when you have the dealer doing the repair?
 
What do you guys think is a fair percentage to mark up the price on parts when you have the dealer doing the repair?

Is this a Mazda dealer installing Mazda parts, and marking the parts up over and above the retail? (wedge)
 
They are marking it up above what it would cost me to get them myself. I know that they don't pay the prices that i pay for these parts. They get at least 10 percent off of what i pay, which is why i ask what would be a fair percentage markup above the 10 percent that they get from the discount. One example would be an oil filter, if i pay for this filter 6 dollars i am sure that they get them for about 4.50 or 4.75 each. I know that at least they would be charging me for the part what i would pay for it.
 
They are marking it up above what it would cost me to get them myself. I know that they don't pay the prices that i pay for these parts. They get at least 10 percent off of what i pay, which is why i ask what would be a fair percentage markup above the 10 percent that they get from the discount. One example would be an oil filter, if i pay for this filter 6 dollars i am sure that they get them for about 4.50 or 4.75 each. I know that at least they would be charging me for the part what i would pay for it.

In my experience, there is typically a 50-100% markup for parts provided by repair shops. So that filter they pay $4.50 for could get them anywhere from $6.75-$9.00.

I have tried several times, but I have never been allowed to provide my own personally sourced Mazda parts to a Mazda repair center.
 
I'm a little confused. Is the dealer marking them up over what it would cost you from their parts counter for the same thing? That seems wrong.
 
What do you guys think is a fair percentage to mark up the price on parts when you have the dealer doing the repair?

A fair percentage is in the eye of the beholder. What a dealer thinks is fair and what you think are fair will be different.

Your local liquor store marks their product up, and they get it from distributors who are middle men from the production facility. I bet you dont question your local liquor store owner when buying a bottle of wine or handle of rum, do you?

The problem is the parts come from Mazda directly to the dealer. You will never know the exact cost so therefore you wont know what the mark up is. This is capitalism.

If you dont like the dealers price, shop online to see if you can get it cheaper.
 
What do you guys think is a fair percentage to mark up the price on parts when you have the dealer doing the repair?

$0. That's why they charge labor. You shouldn't get nailed for parts markup PLUS labor. They don't pay retail price at Pep Boys for parts; they pay wholesale cost. So the dealer's retail price already has profit built in.
 
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Dealers do make money on parts as well as labor. They make money on the parts whether they put them on or sell them to you at their insanely marked up prices. If you go in to buy something over the counter you'll pay a lot more than a shop down the street that buys parts at 'net pricing' that is offered to the trade. Personally I never use any dealer service department for anything other than recalls or warranty work. There are much better options.
 
I will give an example. A certain part if i was to order it from a mazda dealer would cost me 638 dollars delivered to my door. While the dealer would list it in their estimate at 950. That is almost a 50 percent markup of what i would pay and i can safely say that it is more like 60 percent due to the fact that they don't pay what i pay for parts. They get at least a 10 percent discount from mazda. So that makes the mark up 60 percent.
 
I will give an example. A certain part if i was to order it from a mazda dealer would cost me 638 dollars delivered to my door. While the dealer would list it in their estimate at 950. That is almost a 50 percent markup of what i would pay and i can safely say that it is more like 60 percent due to the fact that they don't pay what i pay for parts. They get at least a 10 percent discount from mazda. So that makes the mark up 60 percent.

Sounds about right. Full list prices in the shop. Also, for many dealerships if you are a walk-in parts buyer there is no discount offered like there are for some of the online sellers. It wouldn't surprise me for someone to get that same quote of $950 at the parts counter.
 
I always have had a good experience with my Mazda dealer service center. Their service costs are reasonable, just little more expensive than the local mechanic. They always diagnose the problem correctly and fix exactly what is needed. They also give a correct quote, fix it faster and give me a free loaner. Once when I gave to a local mechanic, initially quoted a low price but slowly called and keep scaring me with other repairs. Also, for some parts like break pads and rotter we get life time warranty and it is totally free. I believe Mazda's maintenance cost is only a third of European car service cost.
 
$0. That's why they charge labor. You shouldn't get nailed for parts markup PLUS labor. They don't pay retail price at Pep Boys for parts.


If parts mark-up were $0 then labor prices would increase to make up the difference. They are going to stick it to you no matter how you approach it. That's what dealers do.

Besides, they have light bills to pay, employees to salary, pension plans to fund, put employees kids through college, etc. We pay for all that as Mazda Customers. Its part of being part of the family, remember.

Am I being sarcastic on purpose? Of course, not - I would never do such a thing. Honest. (whistle)
 
If parts mark-up were $0 then labor prices would increase to make up the difference. They are going to stick it to you no matter how you approach it. That's what dealers do.

Besides, they have light bills to pay, employees to salary, pension plans to fund, put employees kids through college, etc. We pay for all that as Mazda Customers. Its part of being part of the family, remember.

Am I being sarcastic on purpose? Of course, not - I would never do such a thing. Honest. (whistle)

I"m not saying that the dealer, or any other seller, should not mark up from the wholesale cost. But that's not how I read the OP's question. There should be no "markup" over the retail price. Even if they make it up in labor charges....
 
I will give an example. A certain part if i was to order it from a mazda dealer would cost me 638 dollars delivered to my door. While the dealer would list it in their estimate at 950. That is almost a 50 percent markup of what i would pay and i can safely say that it is more like 60 percent due to the fact that they don't pay what i pay for parts. They get at least a 10 percent discount from mazda. So that makes the mark up 60 percent.


Right. So if a dealer says they are going to tack onto their retail prices, it's just absurd.
 
It seems that you can get parts about 30% off list price when you buy them online, maybe a little more (for example, parts.coxmazda.com is about 31% off)...

So, a $900 list part can be found for just north of $600. So a ~50% markup from the web price seems like they are charging you right about list price.
 
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