By - July 21, 2026
Categories: Accounting, Bookkeeping, Crisis Management
If quoting a repair feels harder than it used to, you’re not imagining that either.
In 2026, a 25% tariff applies to many imported auto parts under Section 232, and that’s on top of the supplier price increases shops have already been absorbing for the last few years. Parts costs that were stable for years are now shifting, sometimes between the time you quote a job and the time the part actually arrives.
For a category that typically makes up 30-40% of your revenue, that kind of volatility is exactly where margin quietly disappears if you’re not watching closely.
Why Parts Are the Fastest Place Margin Leaks in 2026
Parts pricing has always required some attention, but tariff-driven volatility raises the stakes. A part that cost a certain amount last month might cost more this month, and if your pricing hasn’t caught up, you’re absorbing that difference without realizing it.
This is especially true for shops still pricing off an outdated matrix. If your parts matrix was built two or three years ago and hasn’t been revisited since, it almost certainly doesn’t reflect current costs. Every job you quote off that matrix is quietly thinner than it looks on paper.
How to Quote When the Price Might Change Before the Part Arrives
The honest answer is that you can’t predict every price swing. But you can build a quoting process that protects you instead of leaving you exposed.
- Quote based on current supplier pricing, not what you paid last time. If your service advisors are pulling prices from memory or from the last invoice rather than checking current cost, that’s where the gap starts.
- Build in a buffer for volatile categories. If certain parts have shown repeated price movement, it’s reasonable to quote those with a small margin of flexibility rather than pricing them razor-thin.
- Communicate clearly if a price shifts before the job is completed. Customers generally respond better to a brief, honest explanation than to a surprise on the final invoice. A short note about supplier cost increases is usually enough.
Reviewing and Updating Your Parts Matrix Mid-Year
Most shops set their parts matrix once a year, if that. In a year where costs are moving as fast as they are right now, that’s not often enough.
A mid-year review doesn’t need to be complicated. Pull your most commonly used parts categories and compare your matrix pricing to your current actual supplier costs. If there’s a meaningful gap, even a modest adjustment can protect margin across hundreds of future ROs.
This is also a good time to ask:
Are your service advisors aware of which categories have moved the most?
Is your matrix accounting for the tariff-driven increases on OEM parts specifically, or is it still built around pre-tariff costs?
Are you reviewing this quarterly, or is it sitting untouched until something forces the conversation?
Talking About Price When Customers Are Already Stretched
This is the part most shop owners dread, but it matters more this year than most. Customers are watching every dollar right now, and they notice when prices move.
The shops that handle this well aren’t apologizing for their pricing. They’re explaining it.
If a quote is higher than it would have been a year ago, a brief explanation, such as supplier and parts costs have increased industry-wide, goes a long way. You’re not making excuses. You’re being transparent about a reality your customers are already experiencing in their own household budgets.
Leading with value rather than just price also matters. A customer who understands what they’re paying for, and why it protects their vehicle, is far more likely to approve the work than one who only sees a number that feels higher than expected.
Not Sure Your Margins Are Keeping Up?
Pricing confidently in a year like this requires knowing where your numbers actually stand, not guessing.
Our $27 Diagnostic Review takes a clear look at your margins, your parts matrix, and where the gaps are likely costing you, so you can quote with confidence instead of crossing your fingers.