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  • Posted by Peter Wolf on February 21, 2020 at 10:24 pm

    They are a big expense for all of us so my thought is to make the charge just enough to cover the costs of what we are using. Some shops use it as a profit generating line on the parts stamement and I have to disagree. Hypothetically if your spending 12,000 a month and your can cover let’s say 70% charging simply the cost of them you won’t piss customers off and you’ll capture 70% of those supplies. That’s almost 100k you saved. Legitimate expense with a fair price to the customer will make most customers ok

    Frank Scandura III replied 2 years, 4 months ago 3 Members · 2 Replies
  • 2 Replies
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  • Tom Ham

    Member
    February 23, 2020 at 8:08 am

    Peter, we decided that we did not want to place a flat fee or percentage on our invoices. Instead, we cover it in two ways. We bill for what we use, and we cover it in our margins overall. As computerization of everything progresses, it is becoming easier to bill for what is used in the repair. A can of brake clean. A tube of RTV. Five zip ties. For years many shops did not specifically bill for things like hose clamps and light bulbs. Today almost all of the do. This is just the next step in billing for things that are legitimately part of the job. It takes some time to transition, but once in place, this handled the issue well for us. Hope this helps! 🙂

  • Frank Scandura III

    Member
    February 27, 2020 at 7:27 pm

    What tom said will work, but I expect my shop supply cost to be 50% of what I actually charge for.

    I wish I could find an affordable bar code system that would allow us to scan and place an item on the RO for supplies.