If your shop isn't using at least one mark up matrix to get the most out of your parts sales, then you might be leaving a lot of money on the table.
In fact, auto repair shops have an amazing opportunity to maximize their profit margin on parts sales in particular. Especially when you consider the tools available to support and simplify the entire process. Gone are the days of using pen and paper or busting out the calculators.
Cloud-based shop management systems have made it easier than ever to not only manage your shop, but really get the most value out of the work you're already doing.
Using a parts matrix in particular is one of the most important aspects in making sure your shop is profitable. By building streamlined process for marking up parts, shops can ensure grow your shop’s profit margin while staying fair to customers.
What is an Auto Parts Markup Matrix?
An auto parts markup matrix is a powerful tool for optimizing your parts pricing and increasing your gross profit.
When it comes to providing parts for a repair, auto repair shops can build multiple markup matrixes to determine the best markup percentage to apply based on different factors, like how much it costs your shop to purchase the part from your selected vendor.
In our latest Auto Repair Industry Index shops were achieving an average 35% with just 3 markup matrixes. There's a lot of room to grow their profits!
Why should shops use a parts markup matrix?
It might be easy for a shop to leave parts markups up to individual service advisors. However, this can result in widely varied processes based on each employee’s unique experience.
You want to build a consistent, reliable mark-up process to save your team time, while maximizing profit yet remaining fair to your customers.
With a detailed parts markup matrix in place there’s no more second-guessing.
Instead of spending precious time figuring out the right markup for every single repair order, the perfect markup percentage can be applied every single time -- both saving time while maximizing profit margins on every repair order.
The Price is Right: Efficient Parts Shopping
Before you decide how much to mark up a part, you obviously have to buy that part (or find it in the inventory). When shopping for parts, getting good deals is important, but so is having an efficient process for finding those deals. Efficient shops strike a balance between quickly finding parts and snagging good deals.
There are various ways to quickly shop around and find the best deal on parts. Some shops still send their part’s person to the local auto parts shop or scrapyard to find those hard-to-find parts.
These days, many auto repair shops save themselves a lot of hassle by turning to shop management systems that enable them to swiftly compare prices from multiple vendors at once. With online parts houses, repair shops can earn back the time they would have spent sending someone to hunt down these parts and making these comparisons in person.
Mark Up Parts By Just the Right Amount
After comparing prices and deciding which parts to purchase, it’s time to find the markup “sweet spot,” where it’s a good deal for your customers and your business.
As a general rule of thumb, the more expensive a part is, the less you can mark it up.
Consider this: fast food companies make some of their highest profit margins off of their least expensive menu item—soda. If a cup of soda costs the fast-food company $0.25, charging a dollar for it gives them a 75% profit margin. But a 75% profit margin on a hamburger that costs the fast-food company $7 to make would hike up the price to $12.25, which is probably more than most customers are willing to spend.
If you double the price of a $10 wiper blade, the customer won’t bat an eye. But if you try to mark up the price of a $400 alternator by 100%, it’s a different story! The customer will balk at the $800 price tag and probably go ask another shop for a second opinion.
Reach the Right Pricing With a Parts Matrix
Marking up Parts with a Simple Calculation
A simple calculation is used when you markup parts in a certain price range by a specific amount.
But you can also use a compound calculation for parts markups. With a compound calculation, parts are marked up by different percentages within specific cost ranges. For example, if you sell a job for $20, you could mark up the first $10 by 10%, and the last half by 20%.
Marking up Parts with a Complex Calculation
While compound calculations are more complicated, using them for your markup matrix can give you an edge when it comes to increasing your gross profit margins. Some shop owners that use complex calculations in their parts markups have been able to increase their profit margin by about 8% to 10% when compared to using a simple calculation.
Find the Right Markup Matrix For Your Shop
Ultimately, each shop has unique needs and preferences, and it’s up to you and your team to determine which type of calculation to use when building your parts matrix. But no matter which calculation method you choose, an automotive markup matrix can be a game-changer.
Tekmetric Marketing now builds ready-to-send campaigns. The message is written and the audience is selected. All that's left is to review, personalize, and send.
Most shop owners know the fastest way to fill this week’s bays is by bringing back customers who already trust them — the ones whose vehicles you serviced months ago but haven’t seen since. Re-engaging existing customers is one of the most effective ways to generate new repair orders.
The problem is finding the time to do it. Figuring out what to send, who to send it to, and when to send it almost always loses out to the car on the lift or the customer standing at the front counter
That's where Tekmetric Marketing's Recommended Campaigns come in.
Instead of starting with a blank page, Tekmetric Marketing does the heavy lifting for you. It analyzes your shop’s data and recommends campaigns that are ready to go. The audience is selected, the message is drafted, and all that’s left is for you to review it, make any changes you’d like, and send.
No blank screen. No guesswork.
Just a campaign ready to help bring customers back.
How It Works
Recommended Campaigns automatically surfaces ready-to-send campaigns tailored to your shop using the information Tekmetric already knows — your customers, previous campaigns, location, and seasonality.
You’re always in control.
Review the recommendation, personalize the message so it sounds like your shop, adjust the audience if you’d like, choose when to send it, and you’re done.
What used to take an hour staring at a blank screen can now be done in just a few clicks.
How Fox River Tire & Auto Uses Recommended Campaigns
Like most shops, Fox River Tire & Auto in St. Charles, Illinois, wants to stay connected with customers and bring them back when the time is right. But deciding what campaign to send, then building it from scratch, takes time most shops don't have.
Recommended Campaigns gives Tammi and her team a starting point instead of a blank page. They review the recommendations, edit the suggested content to fit their brand, and send with confidence.
"Recommended Campaigns provide an excellent launchpad for re-engaging with our customers. Instead of starting from scratch, we refine the suggested content to fit our brand and send it with confidence. The process is straightforward, time-saving, and always delivers."
— Tammi Vest, Business Manager, Fox River Tire & Auto
From Reports to Results
Recommended Campaigns is part of a much bigger shift in where Tekmetric Marketing is headed.
For years, marketing platforms have been good at showing you what already happened: campaign reports, open rates, clicks, and dashboards. That’s valuable, but it still leaves the work on you.
Tekmetric Marketing is evolving beyond reporting. Increasingly, it’s helping you decide what to do next, and doing more of the work for you.
You’ve already seen this with Recommended Review Responses. When a customer leaves a Google review, Tekmetric drafts a thoughtful response for you to review and approve.
Recommended Campaigns is the next step.
Instead of simply telling you that you should market to your customers more often, Tekmetric Marketing puts a campaign directly in front of you — already drafted, targeted, and ready to send.
Your marketing should keep working even while you’re heads-down under a hood.
One Year of Continuous Innovation
Since launching Tekmetric Marketing in the fall of 2025, thousands of shops have made it part of how they attract new customers and bring existing ones back.
We’ve also continued investing in the platform based on feedback from shops like yours.
Recent additions include:
Rich text and custom links in every email so you can create more engaging emails and link directly to booking pages, review sites, and promotions. Bold a headline, organize services into a list, and drop in links to your booking page, review site, or a promotion, in both campaigns and automated emails like review requests and service reminders.
Recurring blocks for your calendar for lunch breaks, holidays, staff meetings, and other recurring events. Easily add recurring lunch blocks, staff meetings or holidays to your calendar with a few clicks. No more appointments booked over your team events without you knowing.
Smarter marketing-source tracking on appointments and ROs: Automatically associate appointments and repair orders with the latest marketing campaign or automation that reached the customer. When a customer books after getting a message, the marketing source pre-fills with the most recent campaign or automation sent to them, so attribution is accurate without the guesswork.
Recommended Review Responses, helping you respond to Google reviews in just a few clicks.
Every one of these improvements started with feedback from shop owners looking for simpler, smarter ways to grow their business.
Keep it coming.
Already using Tekmetric Marketing?
Head to Marketing → Campaigns to see what's recommended for your shop and send your first campaign in just a few clicks.
New to Tekmetric Marketing?
See how Tekmetric Marketing helps shops bring customers back with online booking, automated reminders, review generation, and Recommended Campaigns.
There are many reasons you might want to sell your auto repair shop.
You might be ready for another venture; you might be trying to fund your retirement; or you might just be curious about the value of your business if you do decide to sell.
Whether you're actively in the market to sell your shop, or you just want to know how to value an automotive repair shop just in case, you’ve come to the right place.
How to value your auto repair shop
The industry standard for establishing a sale price for an automotive repair business is to use total owner benefit (TOB) multiplied by four (or TOBx4).
So, if you took home an average of $50,000 a year for the past three years, the price of your business will likely be valued around $200,000. Keep in mind this TOB value does not include property value.
For those who are reading this with the hopes of selling in the near future, that valuation method might seem low to you. And it is.
The good news is that you can go above and beyond the industry standard, and sell your shop for a higher value, if you stay on top of your numbers.
Not only will diligent reporting and good customer service increase your TOB, but you’ll also have more leverage when negotiating offers from buyers.
Here are three steps you can take to improve the valuation of your business and secure the money that you worked hard to earn.
The holidays are a special time of year when we make memories with the family, give thanks, and spread joy. However, with social distancing guidelines still in effect, this holiday season will look a little different. Because this year has been challenging for many people, it’s more important than ever to stay positive and spread cheer to past, current, and prospective customers.
Making people feel warm and fuzzy this holiday season will get them to remember you, leading to more business immediately or at some point in the future. And even if not every person you positively impact comes to your shop, it’s okay! You’re still paying it forward to your community, which bolsters your shop’s reputation and can lead to more referrals down the road.
Here are ten ways you can connect with guests this holiday season.
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