GEM-CAR FAQ
What Profit Margin Should I Expect on Parts Sales
Considering that some parts come from dealers and are sold at a lower margin, the workshop should aim for a minimum average margin of 30% to 36% overall.
To cover ever-increasing costs (training, equipment, taxes, rent), a workshop needs to charge between:
- 40% to 65% margin on OEM / Jobber parts.
- 25-30% margin on used parts,
- 15-25% margin on new tires,
- 70-80% margin on workshop equipment,
- 70% margin on labor.
Your overall margin (including tires, aftermarket, OEM, workshop equipment) is
- Less than 30%: too low,
- 30% to 36%: you're heading in the right direction,
- 37% to 40%: you're performing well,
- 41% and over: you're doing very well.
Posted 4 months agoby Olivier Brunel
#19983 viewsEdited 2 months ago