Mace Canute
Elite Member
If you called those same guys stealerships they'd become highly indignant but...they've earned the moniker!
Fuel Pump Scam By Dealers
- Thread starter KingBubba
- Start date
- Views: 3857
skyhook
Veteran Member
- Joined
- Mar 12, 2013
- Messages
- 1,906
- Location
- Canada Ontario
- Tractor
- 1996 Kubota L4200 GSTC,(sold) 1994 JCB 210S 4x4x4
Hoe muffler from dealer, $625, ordered from abroad from a place that specialized in mufflers etc, $250 shipping and duties included.:confused2:
daugen
Epic Contributor
if you can get away with it....the standard for retailing is keystoning, or doubling one's cost. Jewelry stores excepted; I think they almost triple prices to start, and of course have constant sales. I owned a retail electronics dealership for five years. Markups ranged from 10% on tv's to 300% on small parts. I'd like to think the average tractor driver is just slightly more informed than average, and usually having some mechanical interest, has bought parts and supplies all his/her life. So you get an idea of what things should cost and what is fair.
And then one walks into one's Kubota dealership and orders an air filter that costs $70.
yes one could cross it to non oem, something good like a Baldwin perhaps, but while still under warranty, I think most of us don't want to use non oem or we would give the tractor warranty folks something to chew on. But after the warranty is out, well we want the best value, not the rock bottom cost, if that super low cost means a super low quality part.
What we don't want is the same part stepped on by three different profit centers before it gets into our hands.
so my 70 dollar filter only cost ten bucks to make likely. Does Kubota actually make filters or are they quietly private labeled? They certainly don't make the hydraulic oil they sell and boy do they charge a lot for that.
I would think that anything coming out of a parts dept would have to be marked up at least 30-50% for a large organization to make money. Not like they are selling just one model widget over the internet.
Is there a Harbor Freight of the tractor parts business?
Lot of stuff on Amazon btw.
The reality of all this is that sometimes we just have to have the part now, due to time, weather, anything but the show has to go on. So if they have it, and you want it, about all you can do is ask if they can do better on that price. It's a fair question and it often works if done politely.
And then one walks into one's Kubota dealership and orders an air filter that costs $70.
yes one could cross it to non oem, something good like a Baldwin perhaps, but while still under warranty, I think most of us don't want to use non oem or we would give the tractor warranty folks something to chew on. But after the warranty is out, well we want the best value, not the rock bottom cost, if that super low cost means a super low quality part.
What we don't want is the same part stepped on by three different profit centers before it gets into our hands.
so my 70 dollar filter only cost ten bucks to make likely. Does Kubota actually make filters or are they quietly private labeled? They certainly don't make the hydraulic oil they sell and boy do they charge a lot for that.
I would think that anything coming out of a parts dept would have to be marked up at least 30-50% for a large organization to make money. Not like they are selling just one model widget over the internet.
Is there a Harbor Freight of the tractor parts business?
Lot of stuff on Amazon btw.
The reality of all this is that sometimes we just have to have the part now, due to time, weather, anything but the show has to go on. So if they have it, and you want it, about all you can do is ask if they can do better on that price. It's a fair question and it often works if done politely.
drizler
Platinum Member
- Joined
- Jul 27, 2007
- Messages
- 718
RandyT
Elite Member
It isn't some much that the dealers are scamming for pricing. The problem is there parts supplier is setting not only the retail but the dealer cost. So You may have 3 different companies that use the same part but may also charge the dealer three different prices. A part through NH may MSRP for $100 and cost the dealer $75. Bobcat may use the same part and there suggested retail is $300 and charge their dealers $225.
And 30% is the suggested minimum markup for parts sales. That is considered the break even sales point. But depending on how popular a part is markup could be as low as 15%
And 30% is the suggested minimum markup for parts sales. That is considered the break even sales point. But depending on how popular a part is markup could be as low as 15%
Capricious
Platinum Member
Leejohn
Elite Member
It's the Cobra, but it well be the same with Volvo. I didn't know OMC shared anything with Volvo. I know Merc did and you can see it in there drives. What units did OMC share with Volvo?
Capricious
Platinum Member
This pretty-much explains the joint effort in the last (2) paragraphs:
GLM Products Inc - 30 Years of the OMC Sterndrive
Leejohn
Elite Member
As long as I have working on boats I never knew that. Thanks for the link.
daugen
Epic Contributor
The problem is there parts supplier is setting not only the retail but the dealer cost
always wondered how Federal laws on price fixing and restraint of trade factored into this....they must be skating right on
the edge. The old "mfg refuses to allow us to post anything but full price" routine.
Bought a current model Bose speaker easily at discount lately? Just one example.
all we can do is vote with our feet.
always wondered how Federal laws on price fixing and restraint of trade factored into this....they must be skating right on
the edge. The old "mfg refuses to allow us to post anything but full price" routine.
Bought a current model Bose speaker easily at discount lately? Just one example.
all we can do is vote with our feet.
