How to price garage services

Labour rate

Your labour rate needs to cover technician wages, premises, equipment, insurance, software and profit. UK independent garages typically charge £50–£90/hour (outside London; London rates can reach £120+). Charge too little and you'll be busy but unprofitable. Charge too much without the service to back it up and you'll lose customers to main dealers.

To calculate: total your monthly overheads, divide by productive hours (hours actually spent on billable work, not total hours in the shop), then add your profit margin.

Parts markup

Most independents mark up parts 25–50% above trade cost. This margin covers the time spent ordering, checking and fitting. Some garages use a sliding scale: higher markup on cheaper parts (50%+ on a £5 filter) and lower on expensive items (20–25% on a £300 clutch kit).

Ordering from wholesale (like GSF or Bond) gives better trade prices than retail, improving your margin. Garegi integrates with GSF and Bond wholesale directly from the job card.

GSF integration

Fixed-price services

Customers prefer knowing the cost upfront. Offer fixed prices for common jobs: interim service, full service, MOT, brake pad replacement, timing belt. You absorb some risk on labour time but gain customer confidence and easier booking.

List these on your booking website so customers can see prices before they call.

Common pricing mistakes

• Not including overheads in labour rate: if you only cover wages, you're losing money on every job
• Zero-markup parts: "I pass parts on at cost" sounds generous but erodes your profit
• Not reviewing prices annually: trade costs rise, rent rises, insurance rises. If your prices don't, your margin shrinks
• Quoting before diagnosing: for complex work, quote a diagnostic fee, then provide a full quote based on findings

Show prices on your website

Garages that list prices online convert more enquiries into bookings. Customers are comparison shopping. If your prices aren't visible, they'll go to the garage whose prices are. Garegi's booking website lets you show service prices with the booking flow.