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.
Mechanics need the best tools to perform repairs efficiently and safely. With so many brands in the automotive industry, it can be hard to sift through the noise to find the right automotive tool brand for you. Whether you are a beginner or an expert mechanic, this guide will help identify the best brands for you.
Below, we have highlighted the top automotive tool brands to help you select the best tools for your needs. We have hand-selected these brands to provide a variety of price points and quality levels. Each brand has something unique to offer and we hope this guide helps you narrow down your choices.
Our Top-Rated Mechanic Tool Brands
While every mechanic tool brand has something unique to offer, these high-quality brands stood out to us based on value, reviews, durability, and performance. Tekmetric reviewed these brands without any affiliate commission to remove bias.
Matco Tools: Premium tools for everyone
Matco is a prominent brand in the automotive tool space because of its reputation for durable and reliable products. Featuring a wide variety of hand tools (and apparel) at reasonable prices, Matco has become a leading brand. Products include wrenches, sockets, ratchets, screwdrivers and more. This brand is a great option for mechanics looking for quality tools that are built to last.
Kobalt: Budget-friendly tools
Kobalt has become a popular choice for mechanics looking for professional-grade tools without breaking the bank. They have found the perfect balance of quality and price. Plus, they are easy to find and readily available at Lowes and Amazon. However, if you are looking for highly specialized tools, Kobalt may not offer every tool you need. In addition, you may find better quality from other brands but quality comes at a cost.
Wright Tool: American-made tools
Wright is an innovative USA tool supplier that has created a reputation for quality long-lasting tools. Wright features an extensive product range including wrenches, sockets, hammers, tool storage, screwdrivers, and more. Wright is a great option for those looking for innovation and American-made tools.
Snap-On Tools: Professional-grade hand tools
Snap-On has become synonymous with exceptional quality, precision, and durability, making it a preferred choice among professional automotive mechanics. The premium pricing will be easily justified by professional mechanics and those looking to make an investment but may not be the best choice for casual or DIYers. Snap-On is a great choice for those looking for top-notch quality and performance.
Craftsman Tools: Reliable and budget-friendly
Craftsman is another popular choice for mechanics looking for quality tools without the premium price tag. Craftsman offers a wide variety of tools including sockets, torque wrenches, and ergonomic power tools. Craftsman is a great choice for those looking to find a balance between price and quality. Craftsman is available at most of the large retailers including Amazon, Lowes, and Home Depot.
OTC: Diagnostic and specialty tools
OTC is a reputable brand offering specialty equipment for mechanics. OTC specializes in jacks, diagnostics and speciality equipment. They do not offer every tool you will need but they have select specialized tools that can be hard to find elsewhere. OTC is a great choice for mechanics looking for technical products or needing specialized equipment.
Tek-Tip: Don't forget to look at warranties when comparing the best mechanic tool brands.
Husky: Affordable quality tools
Husky is a big name in the automotive tool space because they have found the right balance of quality and price. They have a large selection of tools and back them up with a lifetime warranty. Products include mechanic tools sets, wrenches, sockets, and more. Husky is easy to find at Home Depot, Amazon, and other large retailers. Most users will like Husky but if you want to make a larger financial investment, you can find higher-quality brands elsewhere.
Proto: Durable and innovative tools
Proto is a reputable brand in the automotive tool industry, offering durable, high-quality tools that are often favorably compared to other brands. Products include adjustable wrenches, combination wrenches, screwdrivers, and more. They offer innovative designs and competitive pricing which make them a viable option for professional mechanics.
Blackhawk: Specialty shop equipment
Blackhawk is another specialty brand offering jacks, stands, ramps, creepers, and shop equipment. While they do not sell every product mechanics need, they specialize in a few key products and have made a good name for themselves. Blackhawk is available at some major retailers including Amazon and Northern Tool.
Milwaukee Tool: Cordless power tools
Milwaukee is a big name in the tool space in general and has been building its presence in the automotive space. Milwaukee offers a wide variety of tools including power tools, lighting, safety equipment, mechanic tool sets, wrenches, and more. They specialize in innovative cordless power tools and can be found at Amazon, Ace Hardware and Home Depot.
DeWalt: Reputable retail supplier
DeWalt is a large supplier of automotive tools and typically caters to both DIY and professional mechanics alike. They offer a comprehensive product line featuring wrenches, power tools, tool kits, storage, hand tools, and more. DeWalt is a great option for those looking for a reputable brand that is easy to find at Amazon, Lowes and Ace Hardware.
Mac Tools: Premium-grade tools
Mac Tools is a leading brand in the automotive space and is recognized for durability and quality. They offer almost every tool a mechanic will need but they are not available at most retailers (buy from a franchise or their website). Despite being harder to locate, Mac Tools is included in this list for a reason and has a lot to offer mechanics looking for professional-grade tools.
Makita: Automotive power tools and batteries
Makita is a reputable automotive tool company specializing in power tools and batteries. If you stay within the Makita ecosystem, their batteries can power over 325 different tools. Power tool products include drive impact wrenches, grinders, lighting, and more. Makita is a top choice for mechanics looking for cordless power tools at a good price.
SK Tools: Renowned quality
With over 100 years of experience, SK has created a reputation for delivering quality tools that last. SK offers mechanic tool sets, sockets, ratchets, wrenches, screwdrivers, tool storage, and more. You can purchase SK Tools on their website, Amazon, and other popular retailers. SK is a great choice for those looking for quality tools at an affordable price point.
How to Pick the Best Tool Brand for You
Price, durability, warranty, and brand reputation are some of the biggest factors when looking for the best tool brand for you. When selecting your brand, make sure it meets your specific needs, budget, and has a strong reputation.
Price
Price is an important factor to consider when looking for the best mechanic tool brand. Consider if it is worth it to purchase a higher quality brand to ensure your tools last longer and need to be replaced less frequently. Lastly, consider additional costs such as batteries, electricity, and storage.
Durability
When selecting your brand, durability is an important factor to consider. Some brands are cheaper but will cost you more over a lifetime if you have to replace them regularly. If the tool has an active lifetime warranty, then this factor holds less importance. Lastly, consider how much you use your tools. Every day? Once a month? If you use tools every day, the extra expense of quality tools may be justified.
Warranty
When looking for the best mechanic tool brands, warranties can be one of the most important factors to consider. Some brands offer lifetime warranties, others offer limited warranties or no warranty at all. Replacement costs can be substantial so make sure you research beforehand.
Reviews
Reviews offer first-hand perspectives of how the tool performed for others. Research each tool and also research the brand as a whole and see how other mechanics are liking the tool/brand.
Essential Tools for Mechanics
Every automotive mechanic should have these hand tools to assist with common repairs and streamline their workflow. While not exhaustive, this list will handle the majority of common car repairs.
Choosing the right mechanic tool brand is essential for maximizing performance and efficiency in your work. You can make an informed decision by considering your specific needs, researching brand reviews, and finding the right warranty. Our top brands mentioned in this blog have earned the trust of professionals for their reliability and durability, so invest wisely in the one that best suits your needs.
Many mechanics and auto repair shops are finding success by utilizing new apps that can help speed up inspections, car repairs, diagnostic readings and more. These apps can help everyone from dealerships and repair shops to mobile mechanics and DIYers. Here is our selection of the best mobile apps and online resources by use type.
Diagnostic and code reader apps
Torque Pro: Torque is a vehicle diagnostics tool and scanner that uses an OBD II Bluetooth adapter to connect to your OBD2 engine management. It can use the GPS to provide tracker logs with OBD engine logging so you can see what you were doing at any point in time.
It works on any vehicle that uses the OBD 2 standard (most vehicles built after 2000, but can work for vehicles as far back as 1996). The app needs a Bluetooth OBD2 adapter to work. Torque is currently $4.95 and available in the Google Play Store.
Car Scanner ELM OBD2: Car Scanner offers OBD code scanning, sensor data and more. You can also reset DC fault codes with this app. It uses an OBD 2 Wi-Fi or Bluetooth adapter to connect to your OBD2 engine management.
RepairSolutions2: TheRepair Solutions app guides you from diagnosis to fix. It pairs with the newest generation of compatible OBD2 decoders and scanners to deliver the most comprehensive automotive repair database with verified fixes from ASE Master Technicians.
Tekmetric Mobile: Tekmetric Mobile is specifically designed for the automotive industry and helps car mechanics be more efficient with tasks like digital vehicle inspections. Technicians can take pictures and videos straight from their mobile phone to show customers where a repair is needed. It also provides auto mechanics with an easy way to manage their time clock.
Tekmetric Mobile is free but an active Tekmetric subscription is required to use this app. Tekmetric Mobile is available for iOS and Android users.
Tek-Tip: Mobile apps can be paired with cloud-based automotive repair software to further boost productivity and effieicncy.
SafetyCulture: SafetyCulture has designed a workflow app that helps teams collaborate and manage tasks. While not specifically designed for the automotive industry, this app can be used for digital vehicle inspections.
This app is free currently for teams with 10 people or less. It is available for iOS and Android users.
Service guide apps
BG Technician App: With access to fluid application guides, tech tips, and service guides, auto repair professionals can harness the power of the BG Tech App in the palm of their hands. The BG Tech App instills the confidence needed for technicians to discuss common car maintenance problems and solutions that prevent those problems. The BG Technician App is free and is available for iOS and Android users.
1A Auto Diagnostic & Repair: The 1A repair app helps guide you through various automotive repairs with over 19,000 videos from professional technicians. You can also shop for auto parts used in the videos directly from the app. This app can also benefit mobile mechanics by allowing them to shop for car parts straight from the app.
Tek-Tip: Don't forget about "old-school" repair manuals that are now available in digital formats.
VIN scanner apps
Tekmetric Mobile: Tekmetric Mobile can scan VIN codes and license plates to help you start your check-in process sooner and build ROs faster.
Tekmetric Mobile is free but an active Tekmetric subscription is required to use this app. Tekmetric Mobile is available for iOS and Android users.
VIN Check Report: This app will scan your VIN and show you market value, vehicle history, recalls, and more. Typically this type of app is used by those looking to purchase a car but this app also helps mechanics find title and recall information.
This app is available for free to Android users or you can utilize their website.
VIN Report: This app provides an easy way for you to scan a VIN and retrieve important title, recall, theft, and pricing information. It also can estimate depreciation and market value if you are looking to buy or sell a car. Mechanics will appreciate its ability to quickly find vehicle history information and open recalls.
The VIN Report mobile app is available for free in the Google Play Store or you can use their website.
Tire apps
TireScan Advisor: While many other options exist for measuring tire tread, TireScan has created an app to help automate this task by taking pictures from your mobile phone. This app utilizes AI to analyze your tire’s tread, TIN and sidewall.
TireScan is available for free in the Google App Store.
Anyline: If you are looking for a more robust app, Anyline might be the solution for you. They have created an app that reads sidewall, tread, TIN/DOT, sizing, make and model in real-time. However, they do not disclose their pricing and it is safe to assume that it is not a free app. This app seems to be designed for dealerships and large repair shops.
Tek-Tip: Tekmetric Tire Suite provides automated DOT registration, fitment data, ordering, and more.
Service advisor apps
BG Advisor App: The BG Advisor App is developed specifically for automotive service advisors and can help with sales, training and more. This app can help service advisors and shop owners explain repairs to customers and win more work for your shop. This app is available for iPhone and Android smartphones.
Online resources
YouTube
YouTube is a gold mine for car repair veterans and DIYers alike. Some of our favorite channels include:
Enright Auto - for new tools and repair techniques
Reddit can be another powerful resource for new techniques plus an online community to answer questions you may have. Some of the best subreddits include:
Mobile apps are more of a luxury than a necessity for mechanics, however, they can help speed up repairs and boost efficiency. They can also help reduce time spent on paperwork and simplify workflows. If your shop is looking to stay competitive in this technology-heavy era plus boost productivity, mobile apps might be the answer you are looking for.
Closing thoughts
While all of these mechanic apps and resources can be useful, it is important to find apps that pair well with your needs. Before downloading any apps, make sure to read the reviews and do your own research. Lastly, don’t be afraid to test new apps out in your shop and see what works best for you.
Drivers typically come in with an expectation of what's wrong with their car, which can make it tricky to sell maintenance work. They might think you're trying to squeeze more money out of them, or may simply have a set budget in their mind and don’t plan on spending extra.
In reality, you're simply trying to go above and beyond and provide them with the best service possible. So how do youshow that, and which tools will help you transform the way you sell maintenance?
Here’s how to build customer trust while staying true to your auto repair shop’s mission of providing optimal maintenance recommendations.
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