50% markup on ALL parts - no, that is not happening - at least for the big boys (Kubota/Deere/Massey, ect) off brands - who knows - they have to do something to keep dealers stocking their stuff - but the name brands have dealers wanting their franchises and little problem if a dealer demands more dropping them and getting a new partner.
My parts knowledge on heavy equipment and tractors is limited - but I deal with it daily on the auto/light truck side. The markup varies by part and supplier - with auto's - you have OE and aftermarket options - which limits the markup OE's can command - are there non regular use parts that a dealer may source for 40-50% by takin advantage of opportunities via closeout/special pricing and charging full list - yes, but the vast majority are closer to 20-30%. Aftermarkets cut it a bit closer to the 20% range.
My tractor experience suggest 15-25% is a common range for equipment - with commonly replaced components going at the lower end of that range. Keep in mind on alot of these things - its their way or else - so the manufacturer can demand their price. There are programs in place for volume buyers that contribute funds at the end of the year for example or give them price matching opportunities to competitive aftermarket suppliers - but a shop cant buy at 85 cents and sell at 85 cents on the dollar and keep the lights on until end of year to cash that check.
Also as mentioned - manufacturer profits - different story - espc if you are not investing money into research and development. They can buy this stuff for pennies and sell for dollars.
And I am sure someone is going to point out - 15% "profit" is still a pretty good profit for ordering stuff for customers and having it shipped to your store/processing the sale...and it is. Of course out of that 15% - you need to pay and keep a knowledgeable counter guy (figure they get a commission on sales goals in addition to regular salary too) - you have to maintain a stock of commonly used filters/parts (inventory carrying cost monthly) and you have to maintain a storage area/storefront. Internet parts houses can leverage one parts guru across many more accounts than a brick/mortar location and can eliminate the need to maintain that retail front (often in a high traffic area where cost are higher). Also to keep that franchise you have to sell x number of machines yearly - which is tougher than it sounds - every buyer wants the "insider" deal...and profit on equipment after incentives/preferred customer price is not great (at least for the dealer - again, manufacturer on certain machines is making money likely - just like the auto companies).
My parts knowledge on heavy equipment and tractors is limited - but I deal with it daily on the auto/light truck side. The markup varies by part and supplier - with auto's - you have OE and aftermarket options - which limits the markup OE's can command - are there non regular use parts that a dealer may source for 40-50% by takin advantage of opportunities via closeout/special pricing and charging full list - yes, but the vast majority are closer to 20-30%. Aftermarkets cut it a bit closer to the 20% range.
My tractor experience suggest 15-25% is a common range for equipment - with commonly replaced components going at the lower end of that range. Keep in mind on alot of these things - its their way or else - so the manufacturer can demand their price. There are programs in place for volume buyers that contribute funds at the end of the year for example or give them price matching opportunities to competitive aftermarket suppliers - but a shop cant buy at 85 cents and sell at 85 cents on the dollar and keep the lights on until end of year to cash that check.
Also as mentioned - manufacturer profits - different story - espc if you are not investing money into research and development. They can buy this stuff for pennies and sell for dollars.
And I am sure someone is going to point out - 15% "profit" is still a pretty good profit for ordering stuff for customers and having it shipped to your store/processing the sale...and it is. Of course out of that 15% - you need to pay and keep a knowledgeable counter guy (figure they get a commission on sales goals in addition to regular salary too) - you have to maintain a stock of commonly used filters/parts (inventory carrying cost monthly) and you have to maintain a storage area/storefront. Internet parts houses can leverage one parts guru across many more accounts than a brick/mortar location and can eliminate the need to maintain that retail front (often in a high traffic area where cost are higher). Also to keep that franchise you have to sell x number of machines yearly - which is tougher than it sounds - every buyer wants the "insider" deal...and profit on equipment after incentives/preferred customer price is not great (at least for the dealer - again, manufacturer on certain machines is making money likely - just like the auto companies).