For independent auto repair & body shops

The industry benchmark for parts margin is 55–58%. Most shops sit at 30–45%.

This one isn't a cost cut — it's a margin fix. A properly structured parts matrix adds roughly $80–150 of gross profit per repair order. At 200 repair orders a month that's $16,000–30,000 a year, which is more than every other line in a typical shop audit combined.

A decade of Fortune 500 strategic sourcing — RFQs, supplier negotiations and category strategy on eight-figure budgets. Those companies were never the ones who needed the help.
$20M+
brand spend managed
$3M+
awarded via competitive RFQ
Lean
Six Sigma Green Belt
Auto Repair & Body Shops

Where the money actually leaks

Real 2026 benchmarks for your business type — not generic small-business advice.

Spend areaTypical savings
Parts matrix pricing
Pricing parts ad hoc instead of on a structured matrix. Benchmark parts GP is 55–58%; most shops sit at 30–45%.
$16–30K/yr margin
Parts purchasing
Standard jobber tier from one supplier. A second qualified supplier plus a volume tier benchmarks lower on the same catalog.
7–9%
Card processing
High average tickets make flat-rate pricing especially expensive — this is where interchange-plus pays most.
$3,000+/yr
Shop-management software
Mid-tier platform with add-ons duplicating a separate parts-catalog subscription.
30–45%
Waste oil & hazmat
Auto-renewing service contract with escalator; competing haulers quote lower.
20–25%
Garage liability
Not re-shopped in three years; clean loss history not reflected in the premium.
10–15%
One question worth asking yourself: Do you run a parts matrix, or price parts ad hoc? And what's your actual parts gross margin?
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A full sample audit for a business like yours

I built a complete sample report for a ~$720K shop. It found $29,520 a year. Download it right now — no form, no email, no strings.

Your audit would be priced at $1,200 — and it's free if it doesn't find at least that much.

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