Prices / Sheet 03
Parts and Materials
Parts at or under $100 carry a 100 percent markup and parts above $100 carry 35 percent. Special order items require full payment at the time the order is placed. Materials calculate from hours, not from invoice size, and sales tax of 7.75 percent applies to parts and materials only.
Parts at a glance
- At or under $100
- 100% markup
- Above $100
- 35% markup
- Special order
- Paid in full at order
- Paint supplies
- $55 / paint hour
- Body supplies
- $5 / body hour
- Sales tax
- 7.75% on parts
Parts are the half of a repair order that owners tend to skip past, and they are the half most likely to decide how long the vehicle sits. Labor can be scheduled. A rear cap that ships in eleven weeks cannot. The figures below exist so that the parts side of an estimate reads as a set of rules rather than as a number somebody chose.
Two markup tiers cover everything the shop buys. Anything priced at or under $100 carries a 100 percent markup. Anything above $100 carries 35 percent. That structure looks odd until you account for what markup actually pays for, which is the sourcing, the verification, the receiving, the storage and the return handling that surround a physical component. Those costs are close to flat per part regardless of what the part costs.
Materials sit in a different category entirely. They are not marked up at all in the ordinary sense. They calculate from hours by published formula, so a refinish job with twenty paint hours produces a predictable supplies figure that can be checked in about five seconds against the refinish line above it.
Why parts carry a markup at all
A part on an estimate is not simply an item pulled off a shelf. Somebody has to identify it correctly against a chassis identification and a coach serial, which are two different catalogs on the same vehicle. Somebody has to price it against current supplier quotes rather than a stale book figure. Somebody has to place the order, track it, receive it, open it, confirm it matches what the estimate says, and stage it so the technician is not standing in a bay waiting. When it arrives wrong, and a meaningful share of specialty parts arrive wrong, all of that happens twice.
None of that effort appears as a labor line. It is absorbed into the markup, which is why the markup exists and why it is published rather than blended quietly into a higher hourly rate. A shop that claims to sell parts at cost is either recovering the same money somewhere else on the ticket or is not doing the verification step, and the second option shows up later as a component that does not fit.
The tier break at $100 reflects the arithmetic of that fixed effort. A hundred percent markup on an $18 seal returns $18, which does not cover a phone call. Thirty five percent on a $2,400 slide motor returns $840, which covers considerably more than the handling it required. Neither figure is generous on its own. Together they average out to something a shop can operate on without hiding the recovery.
- Parts priced at $100 or less carry a 100 percent markup.
- Parts priced above $100 carry a 35 percent markup.
- Special order parts require a 100 percent non refundable deposit at the time the order is placed.
OEM, aftermarket and salvage on a specialty unit
Three sourcing channels are available and the correct one changes by component. An original equipment part comes from the builder or its supplier, fits without modification, and on a coach frequently costs several times what the same function costs in the automotive world because the production volume behind it is a few thousand units rather than a few million. It is the right answer for anything structural, anything that carries a mounting load, and anything where a dimensional mismatch would cascade into adjacent panels.
Aftermarket parts are manufactured by an independent supplier to fit the same application. On recreational vehicles the aftermarket is genuinely strong in some categories and genuinely poor in others. Roof vents, water heaters, converters, awning fabric and exterior lighting have mature aftermarket options that frequently outperform what the coach left the factory with. Body panels, caps and slide components are a different story, because the tolerance that matters is the one against a specific floor plan rather than a published dimension.
Salvage and recycled parts, which the estimating world usually abbreviates as LKQ, come from a donor unit. On a specialty vehicle this channel is more valuable than it is on a passenger car, because the donor is often the only source of a molded panel that nobody produces anymore. The trade is condition variance. A recycled compartment door may need refinish work that an original part would not, and that labor belongs on the estimate before the choice is made rather than after. Every sourcing decision on a ticket is written down with the reason attached, so an owner or an adjuster can argue with the reasoning instead of guessing at it.
- Original equipment: structural members, cap sections, slide mechanisms, anything carrying a mounting load.
- Aftermarket: appliances, converters, vents, awning fabric, lighting, sealants and membrane.
- Recycled donor: molded panels, compartment doors, trim and glass on units whose builder no longer operates.
- Every channel choice appears on the estimate with the reason it was selected.
When the part no longer exists
A substantial share of the units that arrive at the shop were built by a company that has since been absorbed, restructured or closed. Even where the builder still operates, model specific tooling for a discontinued floor plan is usually gone within a decade. The owner is then told by three suppliers that the part is unavailable, which is accurate and unhelpful, because the vehicle still has a hole in it.
Fabrication is the alternative. A molded compartment door can be pulled from a mold taken off the undamaged mirror side of the same unit. A rotted section of aluminum cage framing can be sectioned and welded rather than replaced as an assembly. A trim profile that no extruder still runs can be formed from stock and finished to match. A graphic panel that no printer holds artwork for can be photographed, redrawn to scale and reproduced on cast vinyl.
Fabrication costs labor instead of parts, which changes the shape of the estimate rather than only its total. The hours land in the body and paint category, the materials line grows with the paint hours, and the parts line shrinks toward zero. On a discontinued item the fabricated route is frequently faster as well as cheaper, because a part that does not exist has an infinite lead time and a fabricated one has a schedule. The estimate states the comparison in writing so that an owner is choosing between two described options rather than accepting the only one offered.
Special order deposits
A special order part requires payment in full at the time the order is placed, and that payment is not refundable. The reason is structural rather than punitive. Specialty suppliers build or cut many of these items against a specific vehicle, a specific floor plan and a specific color. A sidewall skin cut to a floor plan is not resalable. A cap molded in a discontinued gel coat shade is not resalable. Once the order leaves, the money is gone from the shop's side whether or not the owner proceeds.
This matters most on jobs where the owner is still deciding. The order is the point of no return, not the authorization signature, and the sequence is deliberately arranged so the owner sees that boundary before crossing it. Parts that can be returned are ordered under normal terms and carry no separate deposit. Only the genuinely non returnable items trigger the requirement, and the estimate identifies which lines those are.
Where a carrier is paying, the same rule applies but the timing shifts. A special order line generally waits until the carrier has approved that specific line, because ordering ahead of approval puts a non returnable item on a file that may still be disputed. Owners who want the schedule to move faster than the approval can authorize the order themselves, and a few do, but the choice is theirs and it is documented.
Materials, disposal and how tax lands
Materials are calculated by formula and shown as their own lines. Paint supplies bill at $55 per paint hour and cover primer, sealer, base, clear, reducer, activator, masking and the abrasives consumed in refinish prep. Body supplies bill at $5 per body hour and cover filler, adhesive, tape, cutting and grinding media and the consumables that disappear into a repair without anyone counting them individually.
A flat $45 hazmat and disposal charge applies whenever chemicals, refrigerant or LP are involved. It is flat rather than proportional because the regulatory obligation does not scale with ticket size. Recovering a small refrigerant charge generates the same manifest, the same handling and the same record keeping as recovering a large one, so charging a percentage of the invoice would make the small job subsidize nothing and the large job overpay.
Sales tax of 7.75 percent applies to parts and materials. Labor is not taxed. That single distinction reshapes how two estimates compare against each other. A shop that repairs a panel bills more hours and fewer parts, which produces a smaller tax figure. A shop that replaces the same panel bills fewer hours and more parts, which produces a larger one. Two estimates that appear close at the bottom can differ meaningfully in what they are actually proposing, and the pretax subtotals are where that shows.
- Paint supplies: $55 per paint hour
- Body supplies: $5 per body hour
- Hazmat and disposal: $45 flat when chemicals, refrigerant or LP is involved
- Sales tax: 7.75 percent on parts and materials. Labor is not taxed.
Sourcing channels compared
| Channel | Strongest use | Trade you accept |
|---|---|---|
| Original equipment | Structural members, caps, slide hardware, load bearing brackets | Highest unit cost and the longest lead times on low volume tooling |
| Aftermarket | Appliances, converters, vents, membrane, awning fabric, lighting | Fit tolerance varies by application and must be verified before install |
| Recycled donor | Molded panels and trim on units whose builder no longer operates | Condition variance, which usually adds prep and refinish hours |
| Fabricated in house | Discontinued panels, doors, trim profiles and graphic panels | Labor replaces parts, so hours rise while the parts line falls |
Questions
01Why does a small part carry a bigger markup than an expensive one?
02Can I supply my own parts and save the markup?
03Is the special order deposit ever returned?
04How are paint and body supplies calculated?
05What gets taxed on a repair order?
- DWG
- PRC-03
- SCOPE
- PARTS AND MATERIALS
- SHEET
- 04 OF 05
- SCALE
- 1:1
- MARKET
- EASTVALE, CA
- SHOP
- YORBA LINDA, CA
Ask what the parts line is doing before you approve it
An estimate written for a unit from Eastvale names the sourcing channel on every part line and states what a fabricated alternative would cost instead.
