Anonymous Poster
Epic Contributor
- Joined
- Sep 27, 2005
- Messages
- 29,678
Some of you may remember some posts from me some months ago about one of my backhoe valve bodies. About $600 through the dealer. About $100 for the same Husco (what Kubota uses) from an independent hydraulic supplier. And the $100 is RETAIL!
Typically an auto parts store needs a gross margin of 60% to survive. They pay (or hope to pay) 40 cents and sell for a dollar. Typical car dealers buy at 60 cents and sell for a dollar, and they have the service and sales department to help pay the overhead.
Kubota Corp feels that buying a part for $50 wholesale means the retail price to the customer should be 12 times that. This isn't something the dealer is stocking either.
The funny thing is that near comparable Kubota's are sold in other countries for far less then we get here, of course they are "not-the-same". No ROPS (that's got to raise the price 50%) etc.
Sooner or later someone is going to set up a website and buy the parts retail in Mongolia and ship them over here and make $$$ selling us our parts at realistic prices.
If Kubota can't afford to keep it's inventory readily available at this kind of markup, what does that say abou their parts management at the corporate level?
They need to make a decent profit to continue to run the business, which we all need, but as time goes on more and more people are going to know if that if they buy a tractor they better hope nothing goes wrong with it as the parts situation is going to make them wish they had put that SUPER UDT in on time! /w3tcompact/icons/smile.gif/w3tcompact/icons/wink.gif/w3tcompact/icons/smile.gif/w3tcompact/icons/smile.gif/w3tcompact/icons/wink.gif/w3tcompact/icons/smile.gif
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Typically an auto parts store needs a gross margin of 60% to survive. They pay (or hope to pay) 40 cents and sell for a dollar. Typical car dealers buy at 60 cents and sell for a dollar, and they have the service and sales department to help pay the overhead.
Kubota Corp feels that buying a part for $50 wholesale means the retail price to the customer should be 12 times that. This isn't something the dealer is stocking either.
The funny thing is that near comparable Kubota's are sold in other countries for far less then we get here, of course they are "not-the-same". No ROPS (that's got to raise the price 50%) etc.
Sooner or later someone is going to set up a website and buy the parts retail in Mongolia and ship them over here and make $$$ selling us our parts at realistic prices.
If Kubota can't afford to keep it's inventory readily available at this kind of markup, what does that say abou their parts management at the corporate level?
They need to make a decent profit to continue to run the business, which we all need, but as time goes on more and more people are going to know if that if they buy a tractor they better hope nothing goes wrong with it as the parts situation is going to make them wish they had put that SUPER UDT in on time! /w3tcompact/icons/smile.gif/w3tcompact/icons/wink.gif/w3tcompact/icons/smile.gif/w3tcompact/icons/smile.gif/w3tcompact/icons/wink.gif/w3tcompact/icons/smile.gif
del