What does the Mechanic get
#271
Guest
Posts: n/a
Re: What does the Mechanic get
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/
> 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/
#272
Guest
Posts: n/a
Re: What does the Mechanic get
Roughly 1/19/04 11:31, Del Rawlins's monkeys randomly typed:
> 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?
Or in some rapaciously taxatious states, you pay a tax for
every item that is setting on your shelf. So the folks that
prefer to avoid customer delays pay extra for actually having
the parts in the building rather than in an out of state
warehouse. No coincidence that most of the big electronics
jobbers in California have most all of their inventory
just across the border in Nevada.
--
Now that Spirit Rover has confirmed the presence of weapons of
mass destruction on Mars, we are preparing to invade...
> 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?
Or in some rapaciously taxatious states, you pay a tax for
every item that is setting on your shelf. So the folks that
prefer to avoid customer delays pay extra for actually having
the parts in the building rather than in an out of state
warehouse. No coincidence that most of the big electronics
jobbers in California have most all of their inventory
just across the border in Nevada.
--
Now that Spirit Rover has confirmed the presence of weapons of
mass destruction on Mars, we are preparing to invade...
#273
Guest
Posts: n/a
Re: What does the Mechanic get
Roughly 1/19/04 11:31, Del Rawlins's monkeys randomly typed:
> 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?
Or in some rapaciously taxatious states, you pay a tax for
every item that is setting on your shelf. So the folks that
prefer to avoid customer delays pay extra for actually having
the parts in the building rather than in an out of state
warehouse. No coincidence that most of the big electronics
jobbers in California have most all of their inventory
just across the border in Nevada.
--
Now that Spirit Rover has confirmed the presence of weapons of
mass destruction on Mars, we are preparing to invade...
> 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?
Or in some rapaciously taxatious states, you pay a tax for
every item that is setting on your shelf. So the folks that
prefer to avoid customer delays pay extra for actually having
the parts in the building rather than in an out of state
warehouse. No coincidence that most of the big electronics
jobbers in California have most all of their inventory
just across the border in Nevada.
--
Now that Spirit Rover has confirmed the presence of weapons of
mass destruction on Mars, we are preparing to invade...
#274
Guest
Posts: n/a
Re: What does the Mechanic get
Roughly 1/19/04 11:31, Del Rawlins's monkeys randomly typed:
> 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?
Or in some rapaciously taxatious states, you pay a tax for
every item that is setting on your shelf. So the folks that
prefer to avoid customer delays pay extra for actually having
the parts in the building rather than in an out of state
warehouse. No coincidence that most of the big electronics
jobbers in California have most all of their inventory
just across the border in Nevada.
--
Now that Spirit Rover has confirmed the presence of weapons of
mass destruction on Mars, we are preparing to invade...
> 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?
Or in some rapaciously taxatious states, you pay a tax for
every item that is setting on your shelf. So the folks that
prefer to avoid customer delays pay extra for actually having
the parts in the building rather than in an out of state
warehouse. No coincidence that most of the big electronics
jobbers in California have most all of their inventory
just across the border in Nevada.
--
Now that Spirit Rover has confirmed the presence of weapons of
mass destruction on Mars, we are preparing to invade...
#275
Guest
Posts: n/a
Re: What does the Mechanic get
It's called floor tax, and your total inventory is taxed every
March here in California.
God Bless America, ßill O|||||||O
mailto:-------------------- http://www.----------.com/
"L0nD0t.$t0we11" wrote:
>
> Or in some rapaciously taxatious states, you pay a tax for
> every item that is setting on your shelf. So the folks that
> prefer to avoid customer delays pay extra for actually having
> the parts in the building rather than in an out of state
> warehouse. No coincidence that most of the big electronics
> jobbers in California have most all of their inventory
> just across the border in Nevada.
>
> --
> Now that Spirit Rover has confirmed the presence of weapons of
> mass destruction on Mars, we are preparing to invade...
March here in California.
God Bless America, ßill O|||||||O
mailto:-------------------- http://www.----------.com/
"L0nD0t.$t0we11" wrote:
>
> Or in some rapaciously taxatious states, you pay a tax for
> every item that is setting on your shelf. So the folks that
> prefer to avoid customer delays pay extra for actually having
> the parts in the building rather than in an out of state
> warehouse. No coincidence that most of the big electronics
> jobbers in California have most all of their inventory
> just across the border in Nevada.
>
> --
> Now that Spirit Rover has confirmed the presence of weapons of
> mass destruction on Mars, we are preparing to invade...
#276
Guest
Posts: n/a
Re: What does the Mechanic get
It's called floor tax, and your total inventory is taxed every
March here in California.
God Bless America, ßill O|||||||O
mailto:-------------------- http://www.----------.com/
"L0nD0t.$t0we11" wrote:
>
> Or in some rapaciously taxatious states, you pay a tax for
> every item that is setting on your shelf. So the folks that
> prefer to avoid customer delays pay extra for actually having
> the parts in the building rather than in an out of state
> warehouse. No coincidence that most of the big electronics
> jobbers in California have most all of their inventory
> just across the border in Nevada.
>
> --
> Now that Spirit Rover has confirmed the presence of weapons of
> mass destruction on Mars, we are preparing to invade...
March here in California.
God Bless America, ßill O|||||||O
mailto:-------------------- http://www.----------.com/
"L0nD0t.$t0we11" wrote:
>
> Or in some rapaciously taxatious states, you pay a tax for
> every item that is setting on your shelf. So the folks that
> prefer to avoid customer delays pay extra for actually having
> the parts in the building rather than in an out of state
> warehouse. No coincidence that most of the big electronics
> jobbers in California have most all of their inventory
> just across the border in Nevada.
>
> --
> Now that Spirit Rover has confirmed the presence of weapons of
> mass destruction on Mars, we are preparing to invade...
#277
Guest
Posts: n/a
Re: What does the Mechanic get
It's called floor tax, and your total inventory is taxed every
March here in California.
God Bless America, ßill O|||||||O
mailto:-------------------- http://www.----------.com/
"L0nD0t.$t0we11" wrote:
>
> Or in some rapaciously taxatious states, you pay a tax for
> every item that is setting on your shelf. So the folks that
> prefer to avoid customer delays pay extra for actually having
> the parts in the building rather than in an out of state
> warehouse. No coincidence that most of the big electronics
> jobbers in California have most all of their inventory
> just across the border in Nevada.
>
> --
> Now that Spirit Rover has confirmed the presence of weapons of
> mass destruction on Mars, we are preparing to invade...
March here in California.
God Bless America, ßill O|||||||O
mailto:-------------------- http://www.----------.com/
"L0nD0t.$t0we11" wrote:
>
> Or in some rapaciously taxatious states, you pay a tax for
> every item that is setting on your shelf. So the folks that
> prefer to avoid customer delays pay extra for actually having
> the parts in the building rather than in an out of state
> warehouse. No coincidence that most of the big electronics
> jobbers in California have most all of their inventory
> just across the border in Nevada.
>
> --
> Now that Spirit Rover has confirmed the presence of weapons of
> mass destruction on Mars, we are preparing to invade...
#278
Guest
Posts: n/a
Re: What does the Mechanic get
"Del Rawlins" <del@_kills_spammers_rawlinsbrothers.org> wrote in message
news:20040119103041693-0900@news.newsguy.com...
> 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/
OK, I can understand the $.25 part selling for $6, to a point since it goes
through the same number of hands as the $11 part. Even if you consider
shipping, tax, and any other hidden costs, there is still a hell of a markup
on these parts. I realize everyone has to make money. But in the case of the
power steering hose, I do know that we shipped directly to the Diamond Star
distribution center. From there the parts went either to the assembly line
or to the dealer. Doing the math with shipping cost of a part that weighs 1
pound, and figuring 20% carrying cost for inventory, there is still an
obnoxious amount of markup on these parts. Considering that we used to ship
about 15,000 of these hoses per month, they weren't sitting on the shelves
very long. Diamond Star was (and maybe still is) using the "just in time"
inventory control method, which does keep inventories at a lower level.
Obviously there are still carrying and handling costs, but when the car
makers whine about not selling enough cars, I tend to not feel too sorry for
them.
Chris
#279
Guest
Posts: n/a
Re: What does the Mechanic get
"Del Rawlins" <del@_kills_spammers_rawlinsbrothers.org> wrote in message
news:20040119103041693-0900@news.newsguy.com...
> 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/
OK, I can understand the $.25 part selling for $6, to a point since it goes
through the same number of hands as the $11 part. Even if you consider
shipping, tax, and any other hidden costs, there is still a hell of a markup
on these parts. I realize everyone has to make money. But in the case of the
power steering hose, I do know that we shipped directly to the Diamond Star
distribution center. From there the parts went either to the assembly line
or to the dealer. Doing the math with shipping cost of a part that weighs 1
pound, and figuring 20% carrying cost for inventory, there is still an
obnoxious amount of markup on these parts. Considering that we used to ship
about 15,000 of these hoses per month, they weren't sitting on the shelves
very long. Diamond Star was (and maybe still is) using the "just in time"
inventory control method, which does keep inventories at a lower level.
Obviously there are still carrying and handling costs, but when the car
makers whine about not selling enough cars, I tend to not feel too sorry for
them.
Chris
#280
Guest
Posts: n/a
Re: What does the Mechanic get
"Del Rawlins" <del@_kills_spammers_rawlinsbrothers.org> wrote in message
news:20040119103041693-0900@news.newsguy.com...
> 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/
OK, I can understand the $.25 part selling for $6, to a point since it goes
through the same number of hands as the $11 part. Even if you consider
shipping, tax, and any other hidden costs, there is still a hell of a markup
on these parts. I realize everyone has to make money. But in the case of the
power steering hose, I do know that we shipped directly to the Diamond Star
distribution center. From there the parts went either to the assembly line
or to the dealer. Doing the math with shipping cost of a part that weighs 1
pound, and figuring 20% carrying cost for inventory, there is still an
obnoxious amount of markup on these parts. Considering that we used to ship
about 15,000 of these hoses per month, they weren't sitting on the shelves
very long. Diamond Star was (and maybe still is) using the "just in time"
inventory control method, which does keep inventories at a lower level.
Obviously there are still carrying and handling costs, but when the car
makers whine about not selling enough cars, I tend to not feel too sorry for
them.
Chris