A practical guide to parts markup for contractors
Parts cost you more than the receipt shows. Markup pays for the trips, stocking and risk.
- List what parts really cost you. Include pickup time, stock that sits on a shelf and returns.
- Pick a markup method. Some shops use one percentage, others use tiers by part cost.
- Keep it consistent. Use the same method on every quote so prices make sense.
- Show it clearly. Put parts on separate lines so the customer sees what they pay for.
- Review each year. Supplier prices change, so check your markup again.
Common questions
Is there a standard markup?
No. It depends on your costs, trade and area. Work from your own numbers.
Should customers supply their own parts?
That is your call. Many shops decline because they cannot warranty parts they did not supply.
See also the contractor guides and free tools.
General information, not legal or financial advice. Verify with your attorney or accountant.
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