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Why do dealer's parts have such a mark-up?
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95h
Posted 11/19/2009 15:30 (#930416 - in reply to #930166)
Subject: RE: How about you show me yours,, and I'll show you mine...


Kittitas Co. Wa. State

Manufacturer sells part to parts store for 80 dollars. Manufacturer says, "suggested retail price $120 dollars".  Parts store takes SRP and adds in their percentage, Farmer buys part for $160, while parts store is paying $80 for part. 

Manufacturer encourages parts store to sell at SRP, (who holds power to revoke dealership..)  If Dealer/parts store sells above set amount of parts, Manufacturer gives the parts store a "rebate".  

Farming is a business like most business', with one difference. Farmer's have the Government requiring Farmers to submit to the Government most all production and input costs and report "product" in storage.  Then the Government "scouts" the growing "product" and takes all the figures and poops out "product" reports and updates to "product" reports ALL of which is PUBLIC knowledge.

Now if Farmers did not have to submit production-inventory reports to the Government and it was ILLEGAL to "scout" the Farmer's "product" in production.....   Then Farming would be like the Manufacturer's in their business and price their "products" according to whatever the market will bear. 

I for one would gladly trade for cost of production + profit margin+ "walking around money"  IF I could get a 100% mark up for what I produce.

UH,, that has NOT happened yet,, So, I like most all farmers will shop for the best quality at the best price available.  Sometimes that means going to the dealer/parts store, Many times, 3 party sources (alot of times the exact same company the Manufacturer buys from!!) for 1/2 or less what the parts store is asking.

Just 1 example,, I needed a Baler belt, went to "DEALER" quoted a price of $150 dollars plus Freight.   I called a relative who works for a huge parts ordering company, gave the old shot belt to the relative.  He called back within 24 hours with the belt price.  Price including shipping to his store 34 miles away was..........  *are you ready for this !!*

$60 dollars including shipping costs !!   This was NOT a "almost the same" or ANY KRAP like that!!   THIS WAS for THE EXACT SAME BELT from the BELT MANUFACTURER. right off the assembly line !!   THE ONLY difference was 1 belt I bought 3rd party,, and the other...  Was the "OFFICIAL Equipment OEM belt!" 

My name is not  Ben DOVER so does anyone really think I would go to the Equipment Dealer to buy the exact same belt for $150 ???????

 To dealers or dealer defenders,, one simple question,,  Does the Government require you to submit your inventory, production costs, input costs, storage capability, etc..etc.. and then Does the Government make those records public ??  Then is your "product" sold according to what the World knows about your inventory ??? 

If it is,, only proof required is a link to where I can see what your "product" is worth today. Seem's the GOV. doesn't say the "product" is worth Less than the cost of production?? Odd eh?  since they KNOW the cost of production.....

NO sweat I'll even go first here's mine..

http://marketnews.usda.gov/gear/browseby/txt/JO_GR110.TXT

Wander a round some,, and look up "my" inventory reports which are there are there too !!  

.

 

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