Parts pricing in Kenyan garages is often set by habit. The same markup has been applied for years, without revisiting whether it still makes sense.

Here is a pricing framework you can actually defend.

Start with landed cost

The price you pay your supplier is not the cost of the part. The landed cost includes:

Purchase price
Transport to your garage
Import duty and VAT (if applicable)
Any packaging or handling

If you ignore these, you are marking up a number that is already below your real cost.

Segment parts by type

Different parts warrant different margins. A rough starting point:

Fast-moving consumables (oil, filters, wipers): 25 to 35 percent markup
Common replacement parts (brake pads, batteries): 25 to 35 percent
Specialist or OEM parts: 35 to 50 percent
Rare or imported parts: 40 to 60 percent

Higher markup on rare parts is justified because of the risk of holding dead stock.

Do not hide markup in labour

Some garages keep parts markup low and load profit into the labour rate. Customers eventually notice, and it damages trust.

Keep both lines honest. Mark up parts fairly. Charge labour fairly. Show both on the invoice.

Price lists by customer type

Different customers warrant different price lists:

Retail walk-in: full margin
Regular trade customers: 5 to 10 percent discount
Fleet accounts: negotiated, volume-based
Insurance: per the assessment agreed with the insurer

Gariclaim supports multiple price lists per customer, so each sale uses the right one automatically.

Reviewing prices regularly

Review parts pricing every quarter. Supplier costs move. The shilling moves. Your prices should adjust accordingly.

If you have not raised parts prices in two years, your margin has quietly disappeared.

The dead stock problem

Every garage accumulates dead stock: parts bought for a job that never happened, or for a model that no longer comes in.

Rule: if a part has not moved in 12 months, discount it. 20 to 30 percent off is better than carrying it forever.

Every three months, run a dead stock report and act on it.

When to say no

If a customer asks you to match a price you cannot match, walk away. Losing money on a sale to keep a customer is a slow way to close the business.

How Gariclaim helps

Gariclaim supports multiple price lists, tracks parts margin by category, and flags slow-moving stock so you can discount before it becomes dead weight.

Every sale, whether from a job card or POS, uses the correct price list for that customer automatically.

Start a free trial and price parts with confidence.

A Guide to Pricing Spare Parts for Kenyan Garages