How Much Should a Truck Shop Mark Up Parts, and What Is a Parts Matrix?
A parts matrix applies a higher markup to cheap parts and a lower one to expensive parts. How to build one from your own costs, with a worked example to adjust.
Related articles
There is no single correct markup. Most shops use a parts matrix, which applies a higher markup to low-cost parts and a lower one to expensive parts, because a customer accepts 100% on a $4 fitting but not on a $4,000 turbo. Build yours from what your parts operation costs you and what your market will pay.
What does a matrix look like?
This is only an example of the shape, not a recommendation. Replace these numbers with your own.
| Your cost | Example markup | Example sell |
|---|---|---|
| $10 | 100% | $20 |
| $100 | 60% | $160 |
| $500 | 40% | $700 |
| $2,000 | 25% | $2,500 |
Markup and margin are not the same thing
A 50% markup on a $100 part sells at $150, which is a 33% gross margin. Mixing these up is a common way to think you are making more than you are. Decide which number you are managing, and label it clearly.
How do I set our numbers?
- Export 6 to 12 months of parts sales and costs.
- Calculate the gross margin you actually earned, including parts you never billed and returns you ate.
- Add up your parts room costs: staff, freight, shrinkage, unreturned cores.
- Set tiers that clear those costs, then compare with a few known prices in your market.
- Decide how fleet accounts differ. Many fleets negotiate parts pricing, so build that in rather than discounting by hand.
How does WrenchPilot apply it?
You set a markup matrix, and new parts price from it. You can override the price on any specific item when you have a set price or a customer deal. Scanned supplier invoices bring cost in, so a price rise is less likely to slip past you.
What will a matrix not fix?
A perfect matrix earns nothing on a part that never reaches the invoice. If margins look low, first read how diesel shops stop unbilled parts.
Want to see it on your own work?
Bring a real repair order to a WrenchPilot demo, and check current pricing first. Lite is $100 per month for one user. Pro is $300 per month with up to 10 technicians, no per-user fees, and no contract.