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Why do dealer's parts have such a mark-up?
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IHC 1470
Posted 11/20/2009 10:57 (#931689 - in reply to #930166)
Subject: RE: Why do dealer's parts have such a mark-up?


Idaho
Having worked in several different dealerships over the years I do understand their points of view. In this day and age it takes quite a bit to keep the doors open. Around here the dealers are all at about the same price level for the red parts. Quite often they do not have the parts on the shelf which I can understand and do have to order. Now if I want that part in a timely fashion I have to pay shipping. If I am not in a hurry a stock order will save freight. Yet I can order the same part from Messicks and it will be OEM and even with the freight from PA to ID it will still be cheeper then from my local dealers. Now there in lies the rub, at least for me. In both cases I have looked up the part number and have the most current part number ready when the order is placed. Parts dept. does not have any time input other than entering the part number into the computer. Also for what it is worth the size of the part has nothing to do with the pricing. At the dealerships I have worked in the small dollar items usually had a much higher percent mark up the the larger items. The last place I worked it was like %28 percent on the small ticket items and %16 on large ticket above manufators suggest retail prices. This was in a motorcycle dealership by the way. We that worked there called it the E.... tax naming it after the owner. Much also depends on the people at the dealership. Here there are several branch stores under one management. At store A they really don't care if they help you or not and are not the least bit interested in selling you aftermarket parts such as the Kile rotor front end kits. At store B which is 70 miles from me they are very happy to see you come in and if they can get it they are happy to sell it. Quite often it is worth my time to drive 70 miles instead of 10. With this franchise they will have on part a store A the next part at B and maybe C and D will have the rest. Or course you pay freight and it will take at least a day maybe two to get everything to the farm. Guys it is not a perfect world out there and as my Son tells me. "Just deal with it." I am like a lot of you. I shop for the best price for the best quality part I can find and let life roll on. You have to in this day and age.
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