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Gear Doughnuts


MARZ

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1 hour ago, M20Doc said:

How/where does his shop get to make any money on the transaction?

Clarence

Great question, the shop I do the acct for I have him charging more for owner provided parts, it has not caused his clients to complain.

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1 hour ago, Danb said:

Great question, the shop I do the acct for I have him charging more for owner provided parts, it has not caused his clients to complain.

Steak and potatoes are cheaper at the grocery store.  I have yet to find a restaurant who will only charge me for cooking them.

Clarence

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3 hours ago, M20Doc said:

How/where does his shop get to make any money on the transaction?

My shop doesn't seem to care if I supply the parts or if they do the ordering.  When I had my windshield replaced he actually asked if I wanted to order it or have him order it.  The quote for install was the same for labor either way.  I had him order it because I didn't want to order the wrong sealant and such.

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If the shop maintains an inventory I expect to be charged a little more for the parts. If they don't maintain an inventory and they order as needed, such as with the gear donuts, I don't expect to be charged for those parts over and above what I'd pay if I ordered them.

But it can get crazy. I had a shop once who wanted to charge me 55$ for an oil filter!  When I said that I have my own filter they said they couldn't use it because they are a repair station and have to be able to have a paper trail. I showed them the invoice from Spruce but it wasn't good enough. Of course I declined.

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1 hour ago, PTK said:

If the shop maintains an inventory I expect to be charged a little more for the parts. If they don't maintain an inventory and they order as needed, such as with the gear donuts, I don't expect to be charged for those parts over and above what I'd pay if I ordered them.

But it can get crazy. I had a shop once who wanted to charge me 55$ for an oil filter!  When I said that I have my own filter they said they couldn't use it because they are a repair station and have to be able to have a paper trail. I showed them the invoice from Spruce but it wasn't good enough. Of course I declined.

I stock a complete set at all times and charge accordingly.

Do you mark up crowns and custom implants which are made to order and are not in your inventory or pass them on at cost?

Clarence

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1 hour ago, M20Doc said:

I stock a complete set at all times and charge accordingly.

Do you mark up crowns and custom implants which are made to order and are not in your inventory or pass them on at cost?

Clarence

I don't expect to be charged 55$ for a 20$ oil filter. Is there anyone who thinks that's acceptable?

 

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1 hour ago, PTK said:

I don't expect to be charged 55$ for a 20$ oil filter. Is there anyone who thinks that's acceptable?

 

Not acceptable, but when you factor in overhead, insurance, accounting, paper trail, the IRS liability etc and time to order, stock, inventory and the desire to sleep indoors and eat. I am not surprised.     Again, do you mark up for crowns and custom implants which are made to order and not in your inventory.  CB want to know>

Ron

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Just now, peevee said:

I'm sure every shop is different, but our guy seems to prefer we supply the parts, easier on his cash flow.

Most states charge sales tax on parts but not labor. In the U. S., mechanics not selling parts simplifies their bookkeeping and maybe even allows them to operate without a sales tax permit.

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15 minutes ago, LANCECASPER said:

Most states charge sales tax on parts but not labor. In the U. S., mechanics not selling parts simplifies their bookkeeping and maybe even allows them to operate without a sales tax permit.

hadn't thought of that. makes sense. I know he doesn't like having big stuff out there on his card while he finishes the job and gets the invoice to us and gets paid etc. I hear about it often :D

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3 hours ago, PTK said:

I don't expect to be charged 55$ for a 20$ oil filter. Is there anyone who thinks that's acceptable?

 

Current price for a Champion oil filter is $24.50, the shop may get 2-3% off of that, they have to ship it in, inspect it, warehouse it, and add a margin to be profitable.  $55.00 while high is understandable.

I was recently quoted $1300.00 for a root canal, a procedure which I was told would take less than an hour!  A pretty healthy rate for an hours work, when people complain about a shop rate less than $100.00 per hour for the average airplane repair shop.  

Clarence

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51 minutes ago, M20Doc said:

Current price for a Champion oil filter is $24.50, the shop may get 2-3% off of that, they have to ship it in, inspect it, warehouse it, and add a margin to be profitable. $55.00 while high is understandable.

Aircraft Spruce sells it for 20$. They also have to ship it in, inspect it, warehouse it, and add a margin to be profitable.

I do expect the shop to charge a reasonable mark up. Not a 275%  mark up!

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I don't think anyone here wants their A&P to sell his products/services below cost and go out of business. But I am afraid that some of them lean a little heavy on the profit margin on parts to avoid having to raise their hourly rate. Much like the restaurants that sell drinks that cost them virtually nothing, for $2+, rather than raising their prices for food. I think we would all be better off if they did was less maneuvering of the "incidentals" and just raised their hourly rate to indicate their real value. After all, that is what we are really paying for; the expertise of the guy who does the work.  

I just paid a dental guru $1900 for a redo (30 years later) on a root canal. I didn't fuss. And everyone here knows what a CB I am.

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