Why Selling Time (Not Just Parts) Drives Profitability

Time is money. Nobody enters a UPS store and asks for overnight shipping at ground rates. It doesn’t make sense.

However, many custom part manufacturers forget this when quoting and pricing their work. A shift in mindset from “parts” to “time” is key to boosting profitability.

Profitability starts with a strategy

Achieving consistent profitability means more than winning a high percentage of quotes; it means winning the right quotes.

Too often, shops prioritize keeping their win rates high without questioning whether the jobs they’re taking on are genuinely profitable. Thriving shops don’t just focus on pricing their parts; they focus on pricing their time. When we meet shops boasting win rates north of 50%, it sets off red flags. If you’re winning such a high percentage of new work, chances are you’re winning by undercutting on price. By looking at both win rates and the profitability of each job, you will better understand whether you’re genuinely performing well.

How to value your time

As anyone who has ordered anything from Amazon lately knows, a Prime membership gets you free two-day delivery. Do you want it the same day? Pay a little extra. Can you afford to wait a few extra days? Get a $2 digital credit. The ball is in the buyer’s court to decide what they value most and how much flexibility they truly have.

Best-in-class shops offer the same level of transparency and flexibility to the buying experience; the vast majority of shops, however, still quote a single price with a single turnaround time. If a buyer does need it faster, those shops make the buyer do the work by having to call and negotiate faster turnaround times—which in and of itself slows down the process when time is of the essence.

The power of dynamic lead times

Buyers value speed and many are willing to pay a premium for it. By offering dynamic lead times—where shorter delivery options come with higher prices—you give your customers the power to choose while capturing high-margin opportunities.

One concern many shops have is that charging more for expedited services might seem predatory. The key to preventing that perception is to stay transparent.

Instead of quoting a single lead time and adjusting the price when the buyer asks for it faster, offer multiple lead time options upfront. For example:

• Standard (5 weeks): $X
• Expedited (3 weeks): $X + 25%
• Rush (1 week): $X × 2

This approach communicates that you’re giving customers choices—not taking advantage of their urgency.

Before you start incorporating dynamic lead times, consider pressure testing your market. Experimentally raise your prices by 1-3%. Are your win rates holding? Raise another 1-3%, and until the market signals that you’re getting too expensive—either by declining win rates or direct customer feedback—you know you have room to grow.

One of our Paperless Parts customers once told me, “We’re an eight-week shop. That’s just what we do.” But when I asked him, “What if I paid you $100,000 to deliver a part in one week?” he changed his tune. He began implementing dynamic lead times and grew his business from $3.5 million to $8 million in annual revenue. Expedites alone added $500,000 in additional revenue every year.

Always leave room for opportunity

Instead of constantly running at 100% capacity, having a little gas in the tank to take on high-margin work can help you stay opportunistic, often leading to more dollars on the bottom line. A buffer allows you to:

• Take on rush jobs at premium prices.
• Maintain flexibility to adjust for unexpected changes.
• Avoid burning out your team with unrealistic schedules.

If a buyer chooses a lower-priced supplier and that supplier fails to deliver, they’ll turn to your shop to save the day with expedited service. Thanks to your built-in open capacity, you’ll be ready to help—and they won’t forget who came through when it’s time to place their next order.

Communicate your value

When you adopt this strategy, let your buyers know upfront. Send them a message explaining your new approach to quoting: You’re offering dynamic lead times to give them more flexibility. Your goal is to be the best supply chain partner, not to price gouge. Framing this as a service upgrade—not a price hike—makes all the difference.

By quoting dynamically, building capacity buffers, and communicating transparently, you can improve profitability while giving your customers more control. Time is money, and it’s (more than) okay to charge for it.

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This blog post was written by Paperless Parts Co-Founder & CEO Jason Ray.