Parts Pricing Calculator
Enter what the part cost you. We'll work out the right sell price, margin, and markup using the Workshop Whisperer parts matrix.
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The parts matrix
Cheap parts carry the business. Expensive parts carry themselves. The matrix sets the multiplier so every tier pulls its weight.
| Cost of part | Multiplier | Margin | Markup |
|---|---|---|---|
| $0 – $1 | × 3.5 | 71% | 250% |
| $1.01 – $5.00 | × 3 | 67% | 200% |
| $5.01 – $100 | × 2.5 | 60% | 150% |
| $100.01 – $300 | × 2 | 50% | 100% |
| $300.01 – $1,000 | × 1.85 | 46% | 85% |
| $1,001+ | × 1.75 | 43% | 75% |
Markup vs. margin
Most shop owners use these two words like they mean the same thing. They don't. Getting them mixed up is how you think you're making 50% and actually bank 33%.
Markup
Gross profit ÷ cost of sales
How much you added on top of the cost. Useful when you're pricing a part from the cost up.
Margin
Gross profit ÷ sales
How much of the sale price you actually keep. This is the one your P&L cares about.
Quick reference:
- 30% markup = 23% margin
- 33.3% markup = 25% margin
- 43% markup = 30% margin
- 75% markup = 42.9% margin
- 100% markup = 50% margin