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Why do dealer's parts have such a mark-up?
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95h
Posted 11/19/2009 23:36 (#931195 - in reply to #931026)
Subject: RE: Omar,, the dealer pricing structure,,


Kittitas Co. Wa. State

was relayed to me from close friend who was personal friend of dealer who retired, sold his dealership. So, could be my friend may have told me something that was untrue,, but what would be his motive??  None, he has nothing to gain from either overplaying or underplaying what the dealer told him. Granted you may not see that pricing structure at your store,, but then that is at your store.

I did an extensive amount of "rebuild" on a baler 3-4 years ago,, just in savings,, now this is savings,, $2700.  Parts I bought were NOT 'close', 'almost as good as', or 'slight modification required'.  Exactly the same parts. Dealer tried to tell me,, "that is obsolete, that hydraulic pump isn't made anymore".  With 2 phone calls, I found that not only was that pump still in current production,, I could send it off to the company-get it rebuilt- and returned to me including freight and taxes, for less than 1/2 of what a kit would cost at the dealer and I would have had to rebuild it myself. Oh,the turn around time for shipping and rebuild?  72 hours. 

"Again, farmers and dealers seem to prosper in similar percentages."  Really ??  where ??  maybe your store ??  

 

Again,, skip the emo. krap. It's a business just like any other business,, having a dealer tell me that totally out of the goodness of his heart he is 'donating' this and that and the other thing, and 'we're a close nit community', etc.etc.etc. Well I did go to college and studied marketing too.. And,, I do go to the county fair every year. Without fail I only see local business' in the Ag. field buying the 4H animals. That is written off as a business expense,,(likely under advertising) then the meat is given to the employees as a bonus. IRS would be like 'white on rice' If I tried to buy a 4H animal and claim advertising deduction. 90% of who I have to sell to is 'middlemen'. 

"All I worry about is whether we can come to a pricing agreement.."  UH,, what pricing agreement ??  I am told "this is the price", uh,, where is any D(*&*  pricing agreement in that transaction ??  I was charged a 25% "restocking fee" when I ordered parts,the parts guy handed me the parts then handed me my copy of the billing and I said,, "I don't think so,,, I need the parts but not that da_n bad",, and handed them back across the counter. I did get the same parts else where for $50.00.  The 'dealer parts' (same parts) were over $270. (same manufacturer)

 

 As I said earlier,, they're in business to make money,,  uh,, well so am I and that ain't happening when I'm spending 50% or more for parts than what the same parts can be bought for elsewhere.

What kind of a business person, pays 50%+ more for something which can be purchased cheaper elsewhere ??

 

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