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Billing Issue - Shop Supplies
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jj4910
Posted 1/4/2016 21:17 (#5011408 - in reply to #5011131)
Subject: RE: Billing Issue - Shop Supplies


SE Wyoming
I worked at a dealership for many many years. The shop supplies thing came up many times while I was there. It was always 2% of the total bill, with a one hundred dollar maximum.

It boiled down to an internal accounting necessity. The shop gets billed for the supplies from the parts department. Each needs to maintain their 30% margin so they are sold at full list from one department to the other. It's hard to eat the price of those supplies, (especially on small jobs), so a surcharge was added to cover such incidentals. That way each department could hopefully cover their margins easier. I have my own shop now and I still bill out for shop supplies. I wouldn't turn a customer away for 20 dollars, but the labor bill might be a quarter hour higher next time. Just sayin. ;-)
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