{
  "slug": "sublet-markup-margin",
  "title": "Sublet Repair Markup Calculator",
  "heading": "Sublet Repair Markup Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/sublet-markup-margin",
  "summary": "Price outsourced work (glass, upholstery, machining) to protect margin without losing the job.",
  "description": "Sublet work — glass replacement, machine shop work, upholstery, specialty welding, towing you rebill — gets marked up like a part, but the right markup depends on how much liability and coordination risk you're carrying versus simply passing the invoice through. This calculator computes sell price and margin for a sublet job given the vendor's invoice cost and your markup percentage, and flags whether that markup is thin, standard, or aggressive relative to typical sublet practices, since sublet items on a repair order are frequently underpriced because they get treated as a pass-through instead of a billable service the shop is coordinating and standing behind.",
  "formula": "Sell Price = Vendor Cost × (1 + Markup%). Margin$ = Sell − Vendor Cost. Margin% = Margin$ ÷ Sell Price.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=sublet-markup-margin",
  "inputs": [
    {
      "id": "vendorCost",
      "label": "Vendor invoice cost",
      "kind": "number",
      "hint": null,
      "default": 320,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "markupPct",
      "label": "Markup percent applied",
      "kind": "number",
      "hint": null,
      "default": 25,
      "unit": "%",
      "min": 0,
      "max": 200
    },
    {
      "id": "coordinationHours",
      "label": "Staff coordination time",
      "kind": "number",
      "hint": null,
      "default": 0.5,
      "unit": "hrs",
      "min": 0,
      "max": null
    },
    {
      "id": "laborRate",
      "label": "Loaded staff labor rate",
      "kind": "number",
      "hint": null,
      "default": 26,
      "unit": "$/hr",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "sell",
      "label": "Sell price to customer",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "marginDollar",
      "label": "Gross margin dollars",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "marginPct",
      "label": "Gross margin percent",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "netMargin",
      "label": "Net margin after coordination time",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Vendor invoice cost: 320 $",
      "Markup percent applied: 25 %",
      "Staff coordination time: 0.5 hrs",
      "Loaded staff labor rate: 26 $/hr"
    ],
    "outputs": [
      "Sell price to customer: $400.00",
      "Gross margin dollars: $80.00",
      "Gross margin percent: 20.0%",
      "Net margin after coordination time: $67.00"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter vendor invoice cost ($).",
      "Enter markup percent applied (%).",
      "Enter staff coordination time (hrs).",
      "Enter loaded staff labor rate ($/hr).",
      "Read your sell price to customer on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "vendorCost": 190,
        "markupPct": 15,
        "coordinationHours": 0.3,
        "laborRate": 16
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "vendorCost": 320,
        "markupPct": 25,
        "coordinationHours": 0.5,
        "laborRate": 26
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "vendorCost": 510,
        "markupPct": 40,
        "coordinationHours": 0.8,
        "laborRate": 42
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "What's a typical sublet markup?",
      "a": "20-30% is common for straightforward pass-throughs like glass or towing. Sublet work requiring more coordination, liability exposure, or warranty responsibility on your part (like outsourced transmission rebuilds) often justifies 30-40%+ since you're standing behind someone else's work under your shop's name."
    },
    {
      "q": "Should I mark up towing bills I rebill to insurance?",
      "a": "Many insurers cap allowable towing markup or require invoice-only billing, so check your DRP agreements before marking up towing — this varies significantly by insurer and state, and billing above allowed caps can trigger an audit flag."
    },
    {
      "q": "Why factor in coordination time at all?",
      "a": "Because scheduling the vendor, transporting the vehicle, quality-checking the work, and handling any comeback on sublet work all consume real staff time that a flat percentage markup doesn't always cover, especially on jobs needing multiple trips or vendor coordination calls."
    },
    {
      "q": "Does sublet markup affect DRP or fleet contract compliance?",
      "a": "Yes — many direct repair programs and fleet contracts cap sublet markup at a specific percentage (often 20-25%) or require cost-plus invoicing with documentation, so check contract terms before applying your standard shop markup to DRP or fleet repair orders."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/parts-gross-profit-matrix",
    "https://www.revenuelab.fyi/toolbox/body-shop-cycle-time"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Sublet Repair Markup Calculator (https://www.revenuelab.fyi/toolbox/sublet-markup-margin)"
}