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Why do dealer's parts have such a mark-up?
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mf6265
Posted 11/19/2009 20:56 (#930827 - in reply to #930166)
Subject: Re: Why do dealer's parts have such a mark-up?


Would like to throw some food for thought in......... I am not siding with high prices but keep this in mind. As customers we all expect the dealers to have / get any part we need. Now with that said OEM's do not always have the part and there are some that do go obsolete. I am sure we have all seen that. However, unlike the Tiscos, A&Is, Shoup and Sloans of the world OEMS do not really have the luxury of supplying only the fast moving parts. Shear economy of scale makes it possible for aftermarkets to have the cheaper parts because typically the parts they carry are higher volume thus increased inventory turns and increased profits even with smaller margins.
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