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Why do dealer's parts have such a mark-up?
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jpmill79
Posted 11/20/2009 00:15 (#931251 - in reply to #931217)
Subject: Re: Why do dealer's parts have such a mark-up?



Northwest Illinois
We used to have a dealership for A&I parts. We would buy parts and compare them to new OEM parts. They were never better but many times they were identical in quality and design and usually half the price. Some things from A&I were absolute garbage though, like alot of their cosmetic tractor parts, hoods, fenders, etc. Alot of JD's 'OEM' parts are sourced directly from A&I and many times use the same number. Sometimes they didn't even bother to paint them green. If I am not mistaken Deere owns a majority stake in A&I.

I do feel like the OEMs are gouging at times. The dealer buys at dealer cost and adds his own margin. Businesses run on margin, like it or not. He can't control what the OEMs charge him for the part. There are some dealers that are always 5-10% higher on parts than other same brand dealers and guess what, I don't buy any parts there and neither should you.
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