AUTO REPAIR SHOP PARTS PRICING MATRIX

A parts pricing matrix is a structured pricing tool that assigns markup percentages based on the cost of a part, helping auto repair shops price parts consistently and protect margins.

Parts are grouped into cost ranges, with each range assigned a specific markup percentage. Lower-cost parts typically carry higher markups, while higher-cost parts carry lower markups. This structure helps balance margins across a wide range of part prices.

A flat markup often underprices low-cost parts and overprices high-cost parts. A pricing matrix balances margin across all parts costs instead of relying on a single percentage.

By standardizing markups across cost tiers, a pricing matrix reduces underpricing, limits inconsistency, and helps maintain steady parts gross profit.

No. This template helps you define your parts pricing strategy. You’ll apply the pricing tiers within your shop management or estimating software.

Most shops review their matrix annually or when costs, margins, or business goals change. Consistent review helps keep pricing aligned with current conditions.

Parts pricing and labor rate work together. If labor is underpriced, parts margins often end up compensating. Both should be set intentionally using real cost data.