Do you think Auto Parts are expensive? There are two main arguments for both sides. First, Auto Repair Shops charge more for the same part. Most of these shops refuse to install a customer-supplied part. Second, they spend 40-60 hours per employee a year on training, which means they are constantly up-to-date with the latest changes in vehicle technology. While Auto Parts Stores have lower overhead costs and a lower customer base, they aren’t as knowledgeable.
OEM and aftermarket auto parts are both high-quality replacements. Although aftermarket auto parts are less expensive than OEM auto parts, you’ll have fewer options when it comes to quality. OEM parts will usually come with a warranty. However, aftermarket parts may be inferior and are not always high-quality. The pros and cons of both types of auto parts are discussed below. OEM Parts: Are OEM or Aftermarket Parts the Best Choice?
Auto Parts Stores: Online retailers are generally cheaper than traditional retail stores. This is due to lower overhead costs and streamlined distribution channels. Online auto parts stores often carry more types of auto parts, leading to lower prices. Local parts stores may only stock one or two brands of auto parts, and they may have exclusive agreements with manufacturers of auto parts. By comparing the two, you can determine which is the better option for you.
The Cost of Replacement: Aftermarket Auto Parts tend to be cheaper, but OEM Manufacturer parts are best in most cases. Most OEM auto parts are between $150 and $500, but some may cost up to $5,000. OEM parts are also ideal for collision repairs because if you’re replacing a damaged body panel, you may not be able to fit an aftermarket part. Additionally, installing an aftermarket part may void a warranty if you’re leasing your car.
How to Determine the Parts Price: Before you begin pricing your parts, you must know your target profit margin. To calculate the cost of a part, divide the full cost by 55. You should get 100. Then apply this equation to each part in your shop. This will ensure that you make consistent profits, maintain a competitive edge, and avoid a reputation for overcharging. It’s that simple! This equation will help you decide whether Auto Parts are expensive or not.