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Back on topic, I enjoyed reading the OP. :thumbsup: |
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My MO when buying parts is to decide on what part I want, take that part number and search for the lowest price. I try to avoid paying full list price whenever I can. Call me crazy, I'm just funny that way. I try to find answers on-line and will only contact a vendor to clearify specific information as needed.
I understand profit margins for vendors and manufacturers but there is one aspect of this discussion that can be controlled and which I have not seen mentioned which is sponsorship. Free parts cost vendors and manufacturers money in exchange for generally very limited press exposure. As a paying customer, I know the price of my parts has the added cost of those free parts added in. I am particularly offended when I see cars built by so called celeberties who have more money to burn than I could ever dream of and yet are too cheap to buy their parts and actually support vendors and manufacturers. These builds usually make a big deal about using the latest and greatest parts that are provided at no or little cost in exchage for worthless endorsements. Why don't you vendors and manufacturers simply cut out these sponsorships which in turn would reduce your overhead costs. Then maybe you could sell parts to us little guys a little cheaper and still make a decent profit margin. |
My take on it,
I have been in business for 22 years, Business is not for all people, there is a reason 80% of all small business go broke in the fist 2 years. As has been said before, it's not just related to one type of business, My belief is you have to be really good at what you do and focus on your own plan, not everybody else, I hope all goes well with your new venture John, But wingeing about what other people do, will not help your position. Keep your head down, bum up and spend your energy on things you can control. It's human nature for people to try to get the best deal, and that will never change. Greg |
1. Jon, points well spoken.
2. The vendors were not held at gun point. Hell, I have called for a quote and had dealers drop their pants by telling me what the other guy is going to sell it to me for. Then offer me that price Without ever asking! I JUST WANTED TO BUY THE PART! I have dealt with some business men in "this industry" that are the worst I have ever seen. They are even worse salesmen. Nobody ever sells the value of themselves while selling their parts. Before you attack know that I run a $20m business for Honeywell in a very very competitive market of competitors droping their pants. I tell dealers to pound sand all the time when the want my help and then want to negotiate. Want to ask my advise, buy my parts. No ticky, no taco! I have suffered for it in years past but many of my competitors have now been sold off because they weren't profitable. 3. Taking money and purposely not shipping is fraud. Fortunately this almost but didn't happen to me. Trying to keep this on task and focused but ******* should do time. So should all the other people who take an order and money but do not have or place the order for the parts. I cannot believe a DA hasn't gotten ahold of one of these guys yet. 4. Because of number 3... I now only buy direct or from major companies. All of the manufacturers have tech lines and I use them. God help you if you need to ask a Summit or Jegs sales person for a part number much less for advise. If I'm ordering it is because I have the money and know what I want. Not too long ago I needed a Chicane kit and guess what, I got exactly what I wanted for the price Speedtech asked. Could I have gotten it cheaper through a dealer...maybe. I don't know. If I want to haggle I'll buy used $hit at a swap meet. I can't afford a new high tech subframe. I can't afford forgeline wheels. So again to Jons point, I don't order them. So...if YOU CAN'T AFFORD TO SELL THE WHEELS OR FRAMES STOP OFFERING THEM. You can rob Peter to pay Paul only for so long. |
trying to understand the profit margin here, whats the mark up in general on auto parts. i used to work in the surf industry and there is a huge profit and mark up in the surf industry, for instance on a pair of board shorts the mark up is about 800%, give or take a few %....
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i see, but on custom stuff i.e. sub frames, wheels, the mark up is very little
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Reply to OP
I see this exact thing all the time in car stereo. Guys will call or come in, take tons of your time and when you quote them a price on parts, "onlinecarstuff.com has it for $xxx" and it drives me absolutely insane.
Yes, you can buy your parts online or elsewhere for less, but you will NOT receive the level of customer service you will eventually need because there is also no warranty on anything you'll buy online. Also, most of those places will not have the knowledge base required, especially if it is in a custom application. That's why I never really search too hard to find a lower price. Instead I look for a business model and level of service that I like and go with that company/business/parts. I often talk to the salesman about my project and a couple have been kind enough to send me a small discount or some other cool free stuff like memorabilia. in return, I will remember to tell everyone who will listen about my experience. A perfect example is my tuner, Motor Machine Super Shop in Carmichael, CA. Don and Bob worked their butts off for nearly 3 weeks on my truck, chasing gremlins and problems that were caused by an incompetent shop. Eventually, they got everything squared away and I couldn't be happier. They spent ALOT of time on that truck but knew I flip burgers for a living so they we were able to work something out and I can't begin to thank them enough. The shop's logo is now a welcome addition to my back window and they are the only place I will ever tell people to go. Service, reputation, and value for the $ will overcome most any hardship. At least I think so. |
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