Managing Parts Markup Metrics

Are you afraid to markup parts because you think customers will Google the price? Stop it. You are running a business, not a charity.

The Parts Matrix

You need a sliding scale matrix. A defined logic in your point-of-sale system.

Parts under $10 might need a 3.0x markup.
Parts around $100 might need 1.8x.
Engines/Transmissions over $2000 might only allow 1.2x.

Consistent application of a matrix ensures you are profitable across the board without gouging on big ticket items.

Effective Labor Rate (ELR)

Parts profit subsidizes your labor. If you sell parts at cost (like some customers want), your labor rate would need to be $250/hr to keep the lights on. Educate your advisors on how to explain the "warranty and handling" value that comes with that markup.