Does your dealer discount small parts?

[milz50]

OEM collision parts have about a 40% mark up. Most body shops I deal with get a least 30% off MSRP from everyone. Some dealers even go a little more to try and steal the customer from me. Luckily not many have left.

You will lose money on every item that is marked up 40% and then discounted 30%.

 

[LJSB]

You will lose money on every item that is marked up 40% and then discounted 30%.

I believe he meant 10 over cost.

 

[NSXTech]

Mark I see your point and it is a good one.
The repairs in my industry, collision repair, are generally paid for by insurance companies who go to great length to know the MSRP of parts.
If a dealer charges above that they, the insurance company, would refuse to compensate me or, should I say the insured, for the overage.

No wise cracks about my age or memory please........... :redface:

I feel your pain, man. :wink: I do a little insurance work- mostly curb surfers or recoveries, and I am ALWAYS paid at MSRP. Keeps honest people honest, I guess.

And getting old is definately, COOL.

MB

 

[4AU4LIFE]

You will lose money on every item that is marked up 40% and then discounted 30%.

Fender MSRP $100 dealer cost-$60
30% off would be selling for $70. How is that losing money???

 

[gobble]

Fender MSRP $100 dealer cost-$60
30% off would be selling for $70. How is that losing money???

You forgot about the cost of the building, employees, utilities, etc.....

 

[4AU4LIFE]

You forgot about the cost of the building, employees, utilities, etc.....

I see what you are saying about that. Quite frankly though I don't worry about that end of it. I get a percentage of the profit that is made on each and every part I sell. The rest of the profit goes to cover such things as you are describing. All of the people in the parts department other than the sales peopole are reducers, we are producers. So I pay my way and that of others as well. I don't have a problem with that though because I have a awesome supporting cast behind me.

 

[gobble]

I attended a PCA driving school yesterday and one of the local Porsche dealers, Councours Motors, had a representative there. He talked for a little bit and said about three times that they offer parts discounts for PCA members (they also provided coffee, soda and about 30 pizzas for lunch). I've never liked this dealer because of bad service experiences in the past, but left there with a much better impression of them. A parts discount is a great way to build goodwill with your enthusiast customers.

 

[Tom239]

Fender MSRP $100 dealer cost-$60
30% off would be selling for $70. How is that losing money???

I'm with milz50 here. (I like being precise with language.)
If you ask $100 for a fender than cost you $60, you've marked it up 67%.

You will lose money on every item that is marked up 40% and then discounted 30%.

"Marked up 40%" means retail price is 1.4 times cost.
"Discounted 30%" means sold at 0.7 times retail price.
1.4 * 0.7 is less than 1.

 

[rbirling]

If you want to be precise, markup can be stated as a percentage of selling price, or cost.
So your $60 -> $100 example is either %40 markup or %67 cost markup. I was taught markup was a percentage of selling price, but online dictionaries show both. Just FYI. :smile:

I'm with milz50 here. (I like being precise with language.)
If you ask $100 for a fender than cost you $60, you've marked it up 67%.


"Marked up 40%" means retail price is 1.4 times cost.
"Discounted 30%" means sold at 0.7 times retail price.
1.4 * 0.7 is less than 1.