Does your dealer discount small parts?

[gobble]

Lets say you go to your local Acura dealer and buy a bolt or a filter or another small OEM part. You get something that looks like it should cost $1 and it costs $10. Does your dealer give you a discount? When I had both my RX7 and my Porsches, the Mazda and Porsche dealers always showed a list price and a net price for things and the net was always maybe 20% less than list. I went to the local Honda dealer last Friday for some crush washers (shared part number) because the Acura dealer was closed for the holiday, and they automatically applied a discount to the parts never having seen me before.

My local Acura dealer always charges me full list price for every part. What is your experience? Are all Acura dealers this way?

 

[NSXDreamer2]

I would say, it's pure luck that the dealer parts guy would like to sell you the small parts at cost. I'm working in the other end of the industry(as a manufacturer for Motorsycles and ATV's), and I do know that Parts are big income in terms of margin, however, you have to understand that for time(labor) we spent on 10 washers is the same to the other order that had 10 engines. Now does it make sense that sometime the small part seems to be a ripped off??

I had a simular experience with my local Acura dealer visit. I asked for the washers for Tranny drain and fill plug, the guy just come back in 2 minutes and told me have a nice day with a smile. (I wasn't even driving the nsx there.) Now on a different day, I went to order a door handle part. It's a little plastic part that shouldn't cost more than couple bucks, in fact I had been charged for $8.30, well, he explained to me that any part that comes with a SLO part number, it's exclusive for nsx, so it costs more, much more. Some little price to pay to have the prestige, hand made machine. Even Acura charged you full price, I bet the part still cost less than the 20% off Porsche parts, and last longer :smile:

 

[nsxtasy]

Since the same guy is in charge of your Acura dealer's parts department and service department, and is also very knowledgeable and helpful towards his NSX customers... why don't you just ask him about it?

 

[LJSB]

You get something that looks like it should cost $1 and it costs $10.

The only thing that cost a dollar for a NSX is fifty cents worth of gas. :biggrin:

 

[gobble]

Since the same guy is in charge of your Acura dealer's parts department and service department, and is also very knowledgeable and helpful towards his NSX customers... why don't you just ask him about it?

Because (1) I don't know who that person is and (2) I don't know if its an appropriate question. I don't know if my dealer is different from any other Acura dealer, hence the thread.

What is your experience at your dealer?

 

[gobble]

The only thing that cost a dollar for a NSX is fifty cents worth of gas. :biggrin:

Not true, there are several dealers that greatly discount their parts but its usually not worth the shipping cost for small items.

 

[comquat1]

I've tried haggling with mine and the best I can get them to take off is 15%, maybe 20%. Then when I say I can get it from Goodson or some other nsx club discounter for 30% off they look at me like I stepped off the crazy train.

I'm in sales and know how parts markups work. I also know that list price is whatever is "put into the computer" at the time it's entered as an item into inventory. I don't think it out of the ordinary for a dealer to make list price more than 2x cost, I think most have it over that. They make good money on this because sometimes there may be a discount further down because they placed an order of a certain ammount (i.e. $1000 instead of a normal $500).

Typically for the stuff I sell you get 40% off of list. Sometimes that's hardly worth my time to locate, write up the order, pay to have it shipped to me, and then deliver it so I'll charge more than list alot of times just to cover the cost of doing business.

Also, sometimes I'll get a real jerk on the phone who wants to get a discount. I usually say, sure I'll give you a discount, but a discount off of what price is never discussed..... :biggrin:

I should also say that I fully understand supporting my local dealer though. When you get in a pinch, and let's face it, Acura nsx techs aren't on every corner, they remember what you've been doing for them in terms of business in the past.

I'm the same way with my good accounts, if they fully realize what I bring to the table in terms of expertise, service and generally competitive pricing, I make sure that they get taken care of when it counts. I'll eat things a few times and only charge them a little bit over cost (to cover handling and invoicing and such) just because they've supported me in the past. Kinda like how rp-motorsports is gonna hook me up with free bilsteins after I refer a few customers who spend big bucks with him! :biggrin: Hey, a guy can dream can't he??

 

[LJSB]

The only thing that cost a dollar for a NSX is fifty cents worth of gas. :biggrin:

Not true, there are several dealers that greatly discount their parts but its usually not worth the shipping cost for small items.

Read that again?????????????????? :smile:

 

[LJSB]

i know that list price is whatever is "put into the computer" at the time it's entered as an item into inventory. I don't think it out of the ordinary for a dealer to make list price more than 2x cost, I think most have it over that.

I buy hundreds of thousands of dollars of parts from many different dealers on many different makes every year, year after year.
In the past twenty five years I've only found one dealer try to set their own list price above the factory list and the plug got pulled on that fast.
They do not make any where near 2x cost. The parts department in most dealerships are in third place after service and sales in terms of profit and revenues.

 

[comquat1]

I buy hundreds of thousands of dollars of parts from many different dealers on many different makes every year, year after year.
In the past twenty five years I've only found one dealer try to set their own list price above the factory list and the plug got pulled on that fast.
They do not make any where near 2x cost. The parts department in most dealerships are in third place after service and sales in terms of profit and revenues.

I know I mentioned 2x cost, however most of the parts in my industry are 40% off, do you think that autoparts are around 40% off though? If it's less than that and closer to 30% off then what are the nsxca vendor members doing supplying parts at this (30% like Goodson and I think Niello?) discount for? I'm sure it's great goodwill, but if I'm running a business down in Texas (like Goodson), the last thing I want my employees doing is making no money on a guy up in michigan. I'm not trying to be a jerk or anything, just trying to understand the pricing schedules of the automotive world.

Also, I recall a post or two a while back of someone calling on "list" prices from some different dealers and getting different prices from each one. I'm pretty sure it was this site that I saw that on. So two of those three dealers aren't on the right page assuming one is truely got the correct list price (unless they're "list" is a discounted list).

 

[LJSB]

List prices are update monthly and sometimes more often from the factory.
I called a dealer this week for a price on some NSX parts and two days later the same dealer had some price changes. Not much mind you, maybe only a dollar or some change but they did change.
The Acura people I deal with don't discount as deep as 30% but I handle so many parts that next/same day delivery, exchanges and credit is more important. The discount to a dealer on a stocking order is usually a bit more, say an additional 5%, than the special order stuff that is sent same/next day. Most sell 10-20 over cost.

You're fortunate.
Having that kind of margin, 40% is nice. :biggrin:

 

[RP-Motorsports]

Because (1) I don't know who that person is and (2) I don't know if its an appropriate question. I don't know if my dealer is different from any other Acura dealer, hence the thread.

What is your experience at your dealer?

I get at least 10% off on everything, including washers there. (the same Acura dealer that you went to) (now I getat least 20% off on parts due to my business permit) , and sometimes more if I have a special coupon.

Are you a NSXCA member?

 

[comquat1]

You're fortunate.
Having that kind of margin, 40% is nice. :biggrin:

How do you think I can afford an NSX??

 

[4AU4LIFE]

pbassjo,
Thanks for saying it like it is. I sell OEM parts for one of the Big 3 and you hit it right on the head.

 

[nsxtasy]

My understanding is that dealer cost on most parts is 60 percent of the list price. This is only the cost of the item, and doesn't take into account ancillary costs like shipping to the dealer, the labor for the folks who work in the parts department, overhead, etc.

Because (1) I don't know who that person is

John V. is the person that most of us deal with at your dealer. His title is Director of Parts and Service, and he indeed oversees both areas in the dealership.

What is your experience at your dealer?

Well, depending on what I'm doing, I sometimes go to that same dealer. And John has a tendency to give folks "deals" on service - throwing in small extras here and there. Basically, when I go there, I just pay whatever they say, knowing that I'm paying something between a fair price to an absolute bargain.

The dealer where I most often go here in the Chicago area normally gives its repeat customers 10 percent off most parts and service. But everything is negotiable; for example, I'm sure that I could go to the parts department and ask what kind of deal they would give me if I bought a case (of 6, I think) of oil filters at a time, and they would give me something better than 10 percent off.

With very small items, I don't usually ask for anything off. It's not a lot of money so it's not worth worrying about, and besides, it just strikes me as, well, petty. But, as noted above, it's not unheard of for them to just give you an inexpensive part, without asking for anything special.

 

[NSXTech]

In the past twenty five years I've only found one dealer try to set their own list price above the factory list and the plug got pulled on that fast.
They do not make any where near 2x cost. The parts department in most dealerships are in third place after service and sales in terms of profit and revenues.

Actually, Acura and Honda (as well as other makes) dealers can and do charge whatever they like. I'm not theorizing here- The 'factory' can only suggest a list price, the S in MSRP is exactly that. The way most Acura dealers work, is on a matrix. For example, any part with a dealer net less than 10. gets marked up 125% Any part costing 10 to 15. gets marked up 100% 15. to 30. may be 85%, and parts over that may be at MSRP. Or not.
i.e. the drain plug washer. Current dealer cost is .16 Current retail is .30 One of our local dealer retails them for a buck. Thats 300 per cent plus. Its no work for them, their parts computer only needs one matrix load.

I really don't mean to dispute pbassjo, I'm sure his comments apply to his industry, but I went to work at my first New Car Dealer in 1972 (no age jokes, please) and have worked at 6 in three states since, and dealt with dozens of others, and most- if not all had some type of matrix in place.
So discounts can be VERY misleading. Discounted from what??

Other than outright fraud- such as warranty descrepencies or title irregularities, the factory has supprisingly little control over the individual dealers. If one's practices are a bit too much for public consumption, they will use the 'hammer' of car allocation to try and reighn them in. I could tell you some stories you probabally wouldn't believe, so I won't.

And in most low volume dealers, new car Sales profit is last after service, parts, finance and insurance, and used car sales. Service and parts are expected to cover 100% of cost of operations for the entire store, also known in the biz as absorption, so that sales profit is the owners take home.



MB

 

[comquat1]

I could tell you some stories you probabally wouldn't believe, so I won't.

MB

I wanna hear 'em! :biggrin:

 

[mackash]

Actually, Acura and Honda (as well as other makes) dealers can and do charge whatever they like. I'm not theorizing here- The 'factory' can only suggest a list price, the S in MSRP is exactly that. The way most Acura dealers work, is on a matrix. For example, any part with a dealer net less than 10. gets marked up 125% Any part costing 10 to 15. gets marked up 100% 15. to 30. may be 85%, and parts over that may be at MSRP. Or not.
i.e. the drain plug washer. Current dealer cost is .16 Current retail is .30 One of our local dealer retails them for a buck. Thats 300 per cent plus. Its no work for them, their parts computer only needs one matrix load.

I really don't mean to dispute pbassjo, I'm sure his comments apply to his industry, but I went to work at my first New Car Dealer in 1972 (no age jokes, please) and have worked at 6 in three states since, and dealt with dozens of others, and most- if not all had some type of matrix in place.
So discounts can be VERY misleading. Discounted from what??

Other than outright fraud- such as warranty descrepencies or title irregularities, the factory has supprisingly little control over the individual dealers. If one's practices are a bit too much for public consumption, they will use the 'hammer' of car allocation to try and reighn them in. I could tell you some stories you probabally wouldn't believe, so I won't.

And in most low volume dealers, new car Sales profit is last after service, parts, finance and insurance, and used car sales. Service and parts are expected to cover 100% of cost of operations for the entire store, also known in the biz as absorption, so that sales profit is the owners take home.



MB

Oh...I believe what you are saying. I was raked over the coals at the dealership in Memphis,TN. Whats the saying "First time shame on them if you go back a second time shame on you".

 

[nsxtasy]

Whats the saying

Fool me once, shame on you; fool me twice, shame on me.

 

[4AU4LIFE]

Actually, Acura and Honda (as well as other makes) dealers can and do charge whatever they like. I'm not theorizing here- The 'factory' can only suggest a list price, the S in MSRP is exactly that. The way most Acura dealers work, is on a matrix. For example, any part with a dealer net less than 10. gets marked up 125% Any part costing 10 to 15. gets marked up 100% 15. to 30. may be 85%, and parts over that may be at MSRP. Or not.
i.e. the drain plug washer. Current dealer cost is .16 Current retail is .30 One of our local dealer retails them for a buck. Thats 300 per cent plus. Its no work for them, their parts computer only needs one matrix load.

MB

Well put Mark.

 

[LJSB]

I really don't mean to dispute pbassjo, I'm sure his comments apply to his industry, MB

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. It would come out of my pocket and that's better not happen if they want me to keep writing checks to them. Having vendors that buy the dollar volume that is common for collision shops a dealer would be foolish to risk losing them as customers for a few extra points.

I have had a dealer, for instance one Ferrari dealer comes to mind, that tried to charge me 10%-15% over MSRP with no discount to me at all. Until now I forgot this happened. I told him to "forget it" when I said "good bye" but I guess I did some forgetting too. It was probably 20 years ago.
No wise cracks about my age or memory please........... :redface:

 

[4AU4LIFE]

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.
I have a chain (8) of local shops that get 32% off list. ONLY because they buy about $600k a year between them. Buy more, get more off....to an extent.
Insurance companies here require some type of proof if the MSRP is different from what there estimating programs show.
Repair shops normally don't care what MSRP is because they charge more than that quite often for the part. They are only concerned with what their price is. As MB stated already, you can tell the average consumer whatever price you want to for list then give them something off that to make them feel like they are getting a deal when actually they aren't. That way they are 'happy' and so is the seller. :wink:

 

[mackash]

Iam curious what is list cost on an oil filter for a 94 nsx?

 

[nsxtasy]

Iam curious what is list cost on an oil filter for a 94 nsx?

You can look it up (along with the list of any other Acura parts) on the Delray Acura website.

 

[mackash]

Thanks Nsxtasy. :smile: