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Near-north Ontario, French River | Lots of others things get tacked onto the price of a part beyond the intitial cost of the part to the dealer. Overhead ( building expenses like taxes, utilities R&M etc), people expenses ( wages and benefits ) , carrying charges ( if a dealer gets a part orf $100 then holds it in inventory for 2 years before it gets sold that part may have a real cost of $115 before it gets sold ) , shipping ( that special part that may weigh 1 oz or 100lbs can be very expensive to ship if its the old part being shipped) all get added to the typical cost of a part BEFORE the dealer tacks on his margin. Talked once to a guy in the retail clothing biz, he said the typical mark-up on clothing was 3-4x his cost, and that even at that level margins were tight as there was pricing pressure from competition. Places like shoup etc can have lower cost because they dont tend to have same sales staff/overhead expenses relative to your hometown dealership. | |
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Why do dealer's parts have such a mark-up?
