06/08/2026
Over the years, and even recently, I've had people question why my repair shop "makes money on parts."
I guess I assumed it was universally understood that for a business to stay in business, it has to make a profit.
Here is my simple explanation:
We don't survive by buying parts for one price and selling them for the exact same price any more than an employee works for free. Parts have markup, labor has profit built into it, and that's how my business pays for its utilities, insurance, equipment, software subscriptions, taxes, employee wages, training, and hopefully still have something left over at the end of the month.
When you receive a paycheck, your employer bills your labor to a customer for more than they pay you. That's called a business model.
Most professional repair shops aim for margins closer to 20-30% or more, depending on the part. That's standard throughout the automotive industry.
Nobody complains when a restaurant charges more for a steak than they paid the supplier. Nobody expects a hardware store to sell lumber at cost. Yet somehow, when a repair shop marks up parts, some people act like it's a shocking discovery.
The funny part is that these same people are often standing in a house built with marked-up lumber, wearing marked-up clothes, eating marked-up food, and typing on a marked-up phone. Then suddenly the mechanic is the only person on Earth who's apparently not supposed to make a profit.
Any thoughts on this? Is this a surprise to you? Let me know down below.
-Eric O.
