Learn how and why you can charge a 25% markup on all of you consumable materials.
At Eagle MMS, we believe not only in the full and unconditional reimbursal of all materials used on a per repair order basis. We believe that a profit should be associated with all material usage. Why exactly? The reason is the same as it is for parts markups or discounts off of list prices that bodyshops currently capitalize on. First off someone must be in charge of inventory, and place orders and maintain levels of materials adequately as needed per operation. When the orders arrive they must be checked to ensure they are correct as part of the orders and that they are not defective. Lastly, and perhaps more importantly, these materials are guaranteed through the repair. For example if a seam sealer fails on a repair due to poor adhesion or cracking and results in water seepage or rusting of the flange, the customer is not going to go 3M headquarters for reprisal, they are coming back to your shop.
These are all the reasons why all of a shop’s inventory is subject to mark up charge and should become a reliable profit driver for the business. Remember an insurance company is not entitled to anything your shop pays to stock on an at cost basis and there is not a single other business model in the world that works off of selling goods at cost. Why should repair work be any different? The consistent margin on materials sales should be the difference between list and wholesale AND list and markup, delivering an additional 25%-40% on your materials bottom line. EagleMMS, captures both points of data, allowing you to see what the realized cost of repairing a vehicle is from a material standpoint as well as what a reasonable billable and invoiceable amount may be, with the option of disclosing your markups should you wish.
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