Loader Price gouging on parts

[DavesTractor]

I agree that the filter needs changed to protect the engine, but I operate my machine mostly in the fields mowing etc...that is hard on a filter im my opinion. Dusty conditions and you can go through a new filter quick. I did purchase a Baldwin filter for it, and I thought it was better than the stock one at half the cost. Needless to say I traded in my Mahindra and bought a Bobcat (I needed a bigger machine). Prices from what I have seen are more in line with my budget. I am in no way bashing Mahindra, I liked my 2615, but I just never understood the cost of simple items.

I think the aftermarket keeps the OEM's honest on prices, and that's good. The products from Japan do cost more than the products from Korea, and Mitsubishi has never been known as being inexpensive, but it is good stuff.

 

[Reg]

Let that $64 air filter go bad, and check the price of an engine! More seriously, most of the filter prices have come down in the last couple of years, and some were reasonable to start with. What I don't understand is why some filters are double the prcie of others...can't be just the materials. We service all brands, and many brands have pricey filters. I think when a model gets popular enough to attract an aftermarket filter, that drives down the OEM price. For example, if Baldwin makes an exact match of an air filter for $28, it would be hard for an OEM to charge $60.

I think it goes the other way round;
Small volume manufacturers adapt their design to an existing filter, medium volume may have a special filter made for their new design, but both contract out to companies such as wix and baldwin.
Even VOLUME manufacturers (car and truck) don't make their own.

 

[Gale Hawkins]

92.7% do not shop prices on parts but just take it in and let the shop/dealer source the parts and pay the price.

The noise comes from the remaining 7.3%.

 

[GS dogs]

I need to chime in here as being a Parts Manager for a Highline Auto Dealer for the last 10 years. It doesn't matter what you are selling (service/parts/equipment/autos/food/farming/etc? it all comes down to
NET PROFIT. If you don't make a NET PROFIT after all of the expenses
(Franchise fees/taxes/taxes/wife & kids/insurance/mortgage/utilities/etc?)
You will go out of business really quick!

So my useless 2 cents is everything has to be priced accordingly to
Market Value in your area where you live whether it is
Beverly Hills or Trailer Heaven.

Here in Massachusetts gas is $2.89 and diesel is $2.85.

Jay

 

[sweettractors]

You should have excluded farmers. Most of us buy retail and sell wholesale. Hard to turn a profit. The game is kinda "Fixed" for us. Ken Sweet

 

[coffeeman]

I need to chime in here as being a Parts Manager for a Highline Auto Dealer for the last 10 years. It doesn't matter what you are selling (service/parts/equipment/autos/food/farming/etc? it all comes down to
NET PROFIT. If you don't make a NET PROFIT after all of the expenses
(Franchise fees/taxes/taxes/wife & kids/insurance/mortgage/utilities/etc?)
You will go out of business really quick!

So my useless 2 cents is everything has to be priced accordingly to
Market Value in your area where you live whether it is
Beverly Hills or Trailer Heaven.

Here in Massachusetts gas is $2.89 and diesel is $2.85.

Jay

Hi there Jay

It seems that most have forgotten CUSTOMER SERVICE !! They have a bean counter in the office who says; "Make a profit of 2 - 3 times cost everytime an employee lifts a finger. The ultimate complaint is; no complaint at all. I vote with my feet.

Years ago when times were good in the auto industry I had a car that caught fire on the way into the dealers lot. I got the car fixed at the dealer. Something happened in the engine. I got the bill for repair and they included charge for labor + expense to put out the fire. I believed charging to put out fire in an emergency was really rotten. My local fire company would have done that for free and still will. I never purchased as much as a gas cap, from that dealer, since that day. I guess you all will say I'm wrong but guess what? The dealer lost a customer for many years.

Cheers....Coffeeman

 

[SABULA FARMER]

Hi there Jay

It seems that most have forgotten CUSTOMER SERVICE !! They have a bean counter in the office who says; "Make a profit of 2 - 3 times cost everytime an employee lifts a finger. The ultimate complaint is; no complaint at all. I vote with my feet.

Years ago when times were good in the auto industry I had a car that caught fire on the way into the dealers lot. I got the car fixed at the dealer. Something happened in the engine. I got the bill for repair and they included charge for labor + expense to put out the fire. I believed charging to put out fire in an emergency was really rotten. My local fire company would have done that for free and still will. I never purchased as much as a gas cap, from that dealer, since that day. I guess you all will say I'm wrong but guess what? The dealer lost a customer for many years.

Cheers....Coffeeman

I could not agree more with the customer service point. Its all about the dollar these days...

 

[GS dogs]

I'll say more tomorrow & I'm not trying to offend anyone.......we just all exist because of net profit from whoever is employer is.

jay

ps: Almost forgot but the equipment industry doesn't understand "What goodwill is" to retain customer satisfaction.....unfortunately that is left up to the dealer to do? and from what I have read on here most dealers do a very good job of this.

jay

 

[MArvane]

Let me pose the following question to all readers: If you were asked to purchase a part for $100 and place it on your shelf until someone purchased it, how much would you need to mark it up? Not a simple answer, is it? Some parts fly off the shelf and are easy to calculate, others may stay there for a year---or more----but knowing you have it is why you have customers. Add in rent, taxes, payroll, utilities, insurance........

(signed)
small businessman in Texas

 

[BobF]

Let me pose the following question to all readers: If you were asked to purchase a part for $100 and place it on your shelf until someone purchased it, how much would you need to mark it up? Not a simple answer, is it? Some parts fly off the shelf and are easy to calculate, others may stay there for a year---or more----but knowing you have it is why you have customers. Add in rent, taxes, payroll, utilities, insurance........

(signed)
small businessman in Texas

Back to the bolt. I don't fault the dealer if the dealer is being charged $6.66 + shipping. I blame Mahindra for not using a standard, readily available bolt in their design. Yes, I understand sometimes higher specs are needed. Not so in this case.

As far as dealer stock goes, I understand the 'future value of money' and the cost/tax implications of keeping something in stock.

This easily extends to retail in general. I'm happy to pay a certain premium, when I shop locally, for the convenience of being able to get what I want now. Unfortunately, more and more retail is becoming 'we can order that for you' - something I can do for myself. Most of the time when I go to a retail shop, I either want it now or want to 'hold it, pet it and call it george' before I buy it. Telling me you can order it for me doesn't help me at all.

Bottom line is that there is a percieved value in every transaction. The dealer/retailer has to make $ and the customer has to feel like s/he got a good value for their $. Both have to be present for *continued* success.

Yeah, life is tough for dealers. Get over it and service your customers. You see something the mfr is doing wrong, YOU raise **** with the mfr - don't piss and moan to me about how hard you have it.

If it was easy to make a living selling tractors and parts, we'd all be doing it!

Show me that smug 'that's the way it is' attitude and I'll take my business elsewhere.

It's your problem if your model has idle employees. Fitting a time-in-motion to the cost of fulfilling individual part orders is rediculous. Fire your bean counter - you'll do better with gut judgement.