I bought a clutch, (made by Sachs) for my Alfa. It cost 60% of the
*exactly* the
same Alfa clutch (made by Sachs). The place I bought it from had counter
staff and
warehouse personnel. Face it - perhaps the dealers don't make any/much money
on parts,
but DC or Alfa do.

the saying "Car makers don't make cars - they assemble them by and large"
has a
large element of truth in it.

Dave

"Jerry Newton" <figatmcttelecom.com> wrote in message
news:400b2d69_2@newspeer2.tds.net...
> Fact is, OEM parts do cost more. That is just a fact of life. Typically
> there is about 35% markup on parts, which sounds ridiculous on the
surface,
> I suppose, but it isn't like the parts department is the profit center of
a
> dealership. Most dealership parts departments not only employ counter
> people, but they have to employ people in shipping and receiving (because
> they ship AND receive parts), warehouse personnel (somebody has to put the
> parts back ON the shelf), and delivery personnel (most dealerships will
> deliver parts out to their wholesale customers).
>
> It has been my experience that a 35% markup is pretty lenient in most
retail
> outlets of any kind. I think 50% or more is realistic.
>
> Jerry
>
> "Lee Ayrton" <layrton@panix.com> wrote in message
> news:Pine.NEB.4.58.0401171539530.27013@panix3.pani x.com...
> > On Sat, 17 Jan 2004, Old Crow wrote:
> >
> > >
> > > Ain't it grand! There's something else we have to put up with that
> > > people don't understand. Just before Christmas, ours wanted to charge
> > > me back the labor for a hub that I replaced on a Jimmy because I
> > > didn't turn the old part back in to the parts dept.
> >
> > Perhaps you could speak to something about dealer repair shops currently
> > on my mind: Prices at the parts counter. Really, I don't mind paying
the
> > flat rate for labor and I have some idea where that $75/hr goes
(overhead,
> > profit, other departments, and on and on, with a bit left over for the
guy
> > bending the wrench), but charging 100% more than the local parts jobber
> > does for parts, well, that part is hard to eat. Even if they _are_
> > Gen-U-Ine authorized parts. (Recently, it wasn't. D-C no longer makes
> > radiators for 89 Cherokees, but they soaked me for it just as if it
was.)
> >
> > I mean, if can't cost _that_ much to keep a part with a logo on the box
> > (add 20% for that) on a shelf, can it?
> >
> >
> >
>
>

 

I bought a clutch, (made by Sachs) for my Alfa. It cost 60% of the
*exactly* the
same Alfa clutch (made by Sachs). The place I bought it from had counter
staff and
warehouse personnel. Face it - perhaps the dealers don't make any/much money
on parts,
but DC or Alfa do.

the saying "Car makers don't make cars - they assemble them by and large"
has a
large element of truth in it.

Dave

"Jerry Newton" <figatmcttelecom.com> wrote in message
news:400b2d69_2@newspeer2.tds.net...
> Fact is, OEM parts do cost more. That is just a fact of life. Typically
> there is about 35% markup on parts, which sounds ridiculous on the
surface,
> I suppose, but it isn't like the parts department is the profit center of
a
> dealership. Most dealership parts departments not only employ counter
> people, but they have to employ people in shipping and receiving (because
> they ship AND receive parts), warehouse personnel (somebody has to put the
> parts back ON the shelf), and delivery personnel (most dealerships will
> deliver parts out to their wholesale customers).
>
> It has been my experience that a 35% markup is pretty lenient in most
retail
> outlets of any kind. I think 50% or more is realistic.
>
> Jerry
>
> "Lee Ayrton" <layrton@panix.com> wrote in message
> news:Pine.NEB.4.58.0401171539530.27013@panix3.pani x.com...
> > On Sat, 17 Jan 2004, Old Crow wrote:
> >
> > >
> > > Ain't it grand! There's something else we have to put up with that
> > > people don't understand. Just before Christmas, ours wanted to charge
> > > me back the labor for a hub that I replaced on a Jimmy because I
> > > didn't turn the old part back in to the parts dept.
> >
> > Perhaps you could speak to something about dealer repair shops currently
> > on my mind: Prices at the parts counter. Really, I don't mind paying
the
> > flat rate for labor and I have some idea where that $75/hr goes
(overhead,
> > profit, other departments, and on and on, with a bit left over for the
guy
> > bending the wrench), but charging 100% more than the local parts jobber
> > does for parts, well, that part is hard to eat. Even if they _are_
> > Gen-U-Ine authorized parts. (Recently, it wasn't. D-C no longer makes
> > radiators for 89 Cherokees, but they soaked me for it just as if it
was.)
> >
> > I mean, if can't cost _that_ much to keep a part with a logo on the box
> > (add 20% for that) on a shelf, can it?
> >
> >
> >
>
>

 

Having worked for a company that made power steering, fuel and brake lines
for certain vehicle manufacturers, I can say that there is a God awful
amount of markup on certain parts. The power steering hoses we used to sell
to Diamond star were sold to them for approximately $11 each. Upon calling
the local Dodge dealer and getting the price from them, I was stunned to
find out that the same power steering hose sold for approximately $130. This
was for a Dodge Ram 50 pickup truck. Someone is getting rich off the parts.
There was also a GM fuel fitting that we made and sold for less than $.25 to
GM, and upon calling the local dealer and getting a price from them, the
part was just over $6. This was a part that they purchased over 2 million a
year from my employer.

Chris

"Dave Milne" <jeep@_nospam_milne.info> wrote in message
news:hHNOb.3664$Tq7.48161828@news-text.cableinet.net...
> I bought a clutch, (made by Sachs) for my Alfa. It cost 60% of the
> *exactly* the
> same Alfa clutch (made by Sachs). The place I bought it from had counter
> staff and
> warehouse personnel. Face it - perhaps the dealers don't make any/much
money
> on parts,
> but DC or Alfa do.
>
> the saying "Car makers don't make cars - they assemble them by and large"
> has a
> large element of truth in it.
>
> Dave
>
> "Jerry Newton" <figatmcttelecom.com> wrote in message
> news:400b2d69_2@newspeer2.tds.net...
> > Fact is, OEM parts do cost more. That is just a fact of life.
Typically
> > there is about 35% markup on parts, which sounds ridiculous on the
> surface,
> > I suppose, but it isn't like the parts department is the profit center
of
> a
> > dealership. Most dealership parts departments not only employ counter
> > people, but they have to employ people in shipping and receiving
(because
> > they ship AND receive parts), warehouse personnel (somebody has to put
the
> > parts back ON the shelf), and delivery personnel (most dealerships will
> > deliver parts out to their wholesale customers).
> >
> > It has been my experience that a 35% markup is pretty lenient in most
> retail
> > outlets of any kind. I think 50% or more is realistic.
> >
> > Jerry
> >
> > "Lee Ayrton" <layrton@panix.com> wrote in message
> > news:Pine.NEB.4.58.0401171539530.27013@panix3.pani x.com...
> > > On Sat, 17 Jan 2004, Old Crow wrote:
> > >
> > > >
> > > > Ain't it grand! There's something else we have to put up with that
> > > > people don't understand. Just before Christmas, ours wanted to
charge
> > > > me back the labor for a hub that I replaced on a Jimmy because I
> > > > didn't turn the old part back in to the parts dept.
> > >
> > > Perhaps you could speak to something about dealer repair shops
currently
> > > on my mind: Prices at the parts counter. Really, I don't mind paying
> the
> > > flat rate for labor and I have some idea where that $75/hr goes
> (overhead,
> > > profit, other departments, and on and on, with a bit left over for the
> guy
> > > bending the wrench), but charging 100% more than the local parts
jobber
> > > does for parts, well, that part is hard to eat. Even if they _are_
> > > Gen-U-Ine authorized parts. (Recently, it wasn't. D-C no longer
makes
> > > radiators for 89 Cherokees, but they soaked me for it just as if it
> was.)
> > >
> > > I mean, if can't cost _that_ much to keep a part with a logo on the
box
> > > (add 20% for that) on a shelf, can it?
> > >
> > >
> > >
> >
> >
>
>

 

Having worked for a company that made power steering, fuel and brake lines
for certain vehicle manufacturers, I can say that there is a God awful
amount of markup on certain parts. The power steering hoses we used to sell
to Diamond star were sold to them for approximately $11 each. Upon calling
the local Dodge dealer and getting the price from them, I was stunned to
find out that the same power steering hose sold for approximately $130. This
was for a Dodge Ram 50 pickup truck. Someone is getting rich off the parts.
There was also a GM fuel fitting that we made and sold for less than $.25 to
GM, and upon calling the local dealer and getting a price from them, the
part was just over $6. This was a part that they purchased over 2 million a
year from my employer.

Chris

"Dave Milne" <jeep@_nospam_milne.info> wrote in message
news:hHNOb.3664$Tq7.48161828@news-text.cableinet.net...
> I bought a clutch, (made by Sachs) for my Alfa. It cost 60% of the
> *exactly* the
> same Alfa clutch (made by Sachs). The place I bought it from had counter
> staff and
> warehouse personnel. Face it - perhaps the dealers don't make any/much
money
> on parts,
> but DC or Alfa do.
>
> the saying "Car makers don't make cars - they assemble them by and large"
> has a
> large element of truth in it.
>
> Dave
>
> "Jerry Newton" <figatmcttelecom.com> wrote in message
> news:400b2d69_2@newspeer2.tds.net...
> > Fact is, OEM parts do cost more. That is just a fact of life.
Typically
> > there is about 35% markup on parts, which sounds ridiculous on the
> surface,
> > I suppose, but it isn't like the parts department is the profit center
of
> a
> > dealership. Most dealership parts departments not only employ counter
> > people, but they have to employ people in shipping and receiving
(because
> > they ship AND receive parts), warehouse personnel (somebody has to put
the
> > parts back ON the shelf), and delivery personnel (most dealerships will
> > deliver parts out to their wholesale customers).
> >
> > It has been my experience that a 35% markup is pretty lenient in most
> retail
> > outlets of any kind. I think 50% or more is realistic.
> >
> > Jerry
> >
> > "Lee Ayrton" <layrton@panix.com> wrote in message
> > news:Pine.NEB.4.58.0401171539530.27013@panix3.pani x.com...
> > > On Sat, 17 Jan 2004, Old Crow wrote:
> > >
> > > >
> > > > Ain't it grand! There's something else we have to put up with that
> > > > people don't understand. Just before Christmas, ours wanted to
charge
> > > > me back the labor for a hub that I replaced on a Jimmy because I
> > > > didn't turn the old part back in to the parts dept.
> > >
> > > Perhaps you could speak to something about dealer repair shops
currently
> > > on my mind: Prices at the parts counter. Really, I don't mind paying
> the
> > > flat rate for labor and I have some idea where that $75/hr goes
> (overhead,
> > > profit, other departments, and on and on, with a bit left over for the
> guy
> > > bending the wrench), but charging 100% more than the local parts
jobber
> > > does for parts, well, that part is hard to eat. Even if they _are_
> > > Gen-U-Ine authorized parts. (Recently, it wasn't. D-C no longer
makes
> > > radiators for 89 Cherokees, but they soaked me for it just as if it
> was.)
> > >
> > > I mean, if can't cost _that_ much to keep a part with a logo on the
box
> > > (add 20% for that) on a shelf, can it?
> > >
> > >
> > >
> >
> >
>
>

 

Having worked for a company that made power steering, fuel and brake lines
for certain vehicle manufacturers, I can say that there is a God awful
amount of markup on certain parts. The power steering hoses we used to sell
to Diamond star were sold to them for approximately $11 each. Upon calling
the local Dodge dealer and getting the price from them, I was stunned to
find out that the same power steering hose sold for approximately $130. This
was for a Dodge Ram 50 pickup truck. Someone is getting rich off the parts.
There was also a GM fuel fitting that we made and sold for less than $.25 to
GM, and upon calling the local dealer and getting a price from them, the
part was just over $6. This was a part that they purchased over 2 million a
year from my employer.

Chris

"Dave Milne" <jeep@_nospam_milne.info> wrote in message
news:hHNOb.3664$Tq7.48161828@news-text.cableinet.net...
> I bought a clutch, (made by Sachs) for my Alfa. It cost 60% of the
> *exactly* the
> same Alfa clutch (made by Sachs). The place I bought it from had counter
> staff and
> warehouse personnel. Face it - perhaps the dealers don't make any/much
money
> on parts,
> but DC or Alfa do.
>
> the saying "Car makers don't make cars - they assemble them by and large"
> has a
> large element of truth in it.
>
> Dave
>
> "Jerry Newton" <figatmcttelecom.com> wrote in message
> news:400b2d69_2@newspeer2.tds.net...
> > Fact is, OEM parts do cost more. That is just a fact of life.
Typically
> > there is about 35% markup on parts, which sounds ridiculous on the
> surface,
> > I suppose, but it isn't like the parts department is the profit center
of
> a
> > dealership. Most dealership parts departments not only employ counter
> > people, but they have to employ people in shipping and receiving
(because
> > they ship AND receive parts), warehouse personnel (somebody has to put
the
> > parts back ON the shelf), and delivery personnel (most dealerships will
> > deliver parts out to their wholesale customers).
> >
> > It has been my experience that a 35% markup is pretty lenient in most
> retail
> > outlets of any kind. I think 50% or more is realistic.
> >
> > Jerry
> >
> > "Lee Ayrton" <layrton@panix.com> wrote in message
> > news:Pine.NEB.4.58.0401171539530.27013@panix3.pani x.com...
> > > On Sat, 17 Jan 2004, Old Crow wrote:
> > >
> > > >
> > > > Ain't it grand! There's something else we have to put up with that
> > > > people don't understand. Just before Christmas, ours wanted to
charge
> > > > me back the labor for a hub that I replaced on a Jimmy because I
> > > > didn't turn the old part back in to the parts dept.
> > >
> > > Perhaps you could speak to something about dealer repair shops
currently
> > > on my mind: Prices at the parts counter. Really, I don't mind paying
> the
> > > flat rate for labor and I have some idea where that $75/hr goes
> (overhead,
> > > profit, other departments, and on and on, with a bit left over for the
> guy
> > > bending the wrench), but charging 100% more than the local parts
jobber
> > > does for parts, well, that part is hard to eat. Even if they _are_
> > > Gen-U-Ine authorized parts. (Recently, it wasn't. D-C no longer
makes
> > > radiators for 89 Cherokees, but they soaked me for it just as if it
> was.)
> > >
> > > I mean, if can't cost _that_ much to keep a part with a logo on the
box
> > > (add 20% for that) on a shelf, can it?
> > >
> > >
> > >
> >
> >
>
>

 

c did pass the time by typing:
> Having worked for a company that made power steering, fuel and brake lines
> for certain vehicle manufacturers, I can say that there is a God awful
> amount of markup on certain parts. The power steering hoses we used to sell
> to Diamond star were sold to them for approximately $11 each. Upon calling
> the local Dodge dealer and getting the price from them, I was stunned to
> find out that the same power steering hose sold for approximately $130. This
> was for a Dodge Ram 50 pickup truck. Someone is getting rich off the parts.
> There was also a GM fuel fitting that we made and sold for less than $.25 to
> GM, and upon calling the local dealer and getting a price from them, the
> part was just over $6. This was a part that they purchased over 2 million a
> year from my employer.

Yep. It would be sad if it wasn't so pathetic. :/

Knew someone that did the books at a local dealership. According
to him the average profit margin on parts was 300% although some were
less and others were over 1000%. Like your .25 part going for 6$
for a markup of 2400%

What makes ya wonder is why a local dealer can't sell the same
exact part for less than say buymopar even if you include shipping.

The answer is probably "price fixing." Dealerships appear to have some
sort of agreement on priceing in the market area.

...ok.. I'll put my tinfoil hat back on now... :)

FWIW, I always suggest folks use a local hydraulic hose maker instead
of the dealership. You can get much better for much less and they
can also rebuild your old hose.

--
DougW

 

c did pass the time by typing:
> Having worked for a company that made power steering, fuel and brake lines
> for certain vehicle manufacturers, I can say that there is a God awful
> amount of markup on certain parts. The power steering hoses we used to sell
> to Diamond star were sold to them for approximately $11 each. Upon calling
> the local Dodge dealer and getting the price from them, I was stunned to
> find out that the same power steering hose sold for approximately $130. This
> was for a Dodge Ram 50 pickup truck. Someone is getting rich off the parts.
> There was also a GM fuel fitting that we made and sold for less than $.25 to
> GM, and upon calling the local dealer and getting a price from them, the
> part was just over $6. This was a part that they purchased over 2 million a
> year from my employer.

Yep. It would be sad if it wasn't so pathetic. :/

Knew someone that did the books at a local dealership. According
to him the average profit margin on parts was 300% although some were
less and others were over 1000%. Like your .25 part going for 6$
for a markup of 2400%

What makes ya wonder is why a local dealer can't sell the same
exact part for less than say buymopar even if you include shipping.

The answer is probably "price fixing." Dealerships appear to have some
sort of agreement on priceing in the market area.

...ok.. I'll put my tinfoil hat back on now... :)

FWIW, I always suggest folks use a local hydraulic hose maker instead
of the dealership. You can get much better for much less and they
can also rebuild your old hose.

--
DougW

 

c did pass the time by typing:
> Having worked for a company that made power steering, fuel and brake lines
> for certain vehicle manufacturers, I can say that there is a God awful
> amount of markup on certain parts. The power steering hoses we used to sell
> to Diamond star were sold to them for approximately $11 each. Upon calling
> the local Dodge dealer and getting the price from them, I was stunned to
> find out that the same power steering hose sold for approximately $130. This
> was for a Dodge Ram 50 pickup truck. Someone is getting rich off the parts.
> There was also a GM fuel fitting that we made and sold for less than $.25 to
> GM, and upon calling the local dealer and getting a price from them, the
> part was just over $6. This was a part that they purchased over 2 million a
> year from my employer.

Yep. It would be sad if it wasn't so pathetic. :/

Knew someone that did the books at a local dealership. According
to him the average profit margin on parts was 300% although some were
less and others were over 1000%. Like your .25 part going for 6$
for a markup of 2400%

What makes ya wonder is why a local dealer can't sell the same
exact part for less than say buymopar even if you include shipping.

The answer is probably "price fixing." Dealerships appear to have some
sort of agreement on priceing in the market area.

...ok.. I'll put my tinfoil hat back on now... :)

FWIW, I always suggest folks use a local hydraulic hose maker instead
of the dealership. You can get much better for much less and they
can also rebuild your old hose.

--
DougW

 

On 19 Jan 2004 09:00 AM, c posted the following:
> Having worked for a company that made power steering, fuel and brake
> lines for certain vehicle manufacturers, I can say that there is a God
> awful amount of markup on certain parts. The power steering hoses we
> used to sell to Diamond star were sold to them for approximately $11
> each. Upon calling the local Dodge dealer and getting the price from
> them, I was stunned to find out that the same power steering hose sold
> for approximately $130. This was for a Dodge Ram 50 pickup truck.
> Someone is getting rich off the parts. There was also a GM fuel
> fitting that we made and sold for less than $.25 to GM, and upon
> calling the local dealer and getting a price from them, the part was
> just over $6. This was a part that they purchased over 2 million a
> year from my employer.

It makes more sense when you consider each pair of hands that the parts
pass through, and the fact that each of them is feeding one or more
mouths. Add on top of that the time that each part has to sit on a
series of shelves for some period of time before reaching the end user,
and that those parts represent capital that is tied up for that period
of time. If your money is invested in a bank or a fund you will rightly
expect a return for that. Why should it be any different for money
invested in parts, sitting on a shelf?

----------------------------------------------------
Del Rawlins- del@_kills_spammers_rawlinsbrothers.org
Remove _kills_spammers_ to reply via email.
Unofficial Bearhawk FAQ website:
http://www.rawlinsbrothers.org/bhfaq/

 

On 19 Jan 2004 09:00 AM, c posted the following:
> Having worked for a company that made power steering, fuel and brake
> lines for certain vehicle manufacturers, I can say that there is a God
> awful amount of markup on certain parts. The power steering hoses we
> used to sell to Diamond star were sold to them for approximately $11
> each. Upon calling the local Dodge dealer and getting the price from
> them, I was stunned to find out that the same power steering hose sold
> for approximately $130. This was for a Dodge Ram 50 pickup truck.
> Someone is getting rich off the parts. There was also a GM fuel
> fitting that we made and sold for less than $.25 to GM, and upon
> calling the local dealer and getting a price from them, the part was
> just over $6. This was a part that they purchased over 2 million a
> year from my employer.

It makes more sense when you consider each pair of hands that the parts
pass through, and the fact that each of them is feeding one or more
mouths. Add on top of that the time that each part has to sit on a
series of shelves for some period of time before reaching the end user,
and that those parts represent capital that is tied up for that period
of time. If your money is invested in a bank or a fund you will rightly
expect a return for that. Why should it be any different for money
invested in parts, sitting on a shelf?

----------------------------------------------------
Del Rawlins- del@_kills_spammers_rawlinsbrothers.org
Remove _kills_spammers_ to reply via email.
Unofficial Bearhawk FAQ website:
http://www.rawlinsbrothers.org/bhfaq/