Dealership Parts Counter Prices

[HTSS_TR]

My MB dealer charges above the list price for most items, MB ATF was listed at $7.xx a liter and I paid $9.xx after asking for a discount from $10.xx the part counter person demanded.

The brake switch was only $11-12 online shipped, my dealer price was $30. Fleece oil filter was less than $15 online and $29 at dealer.

I don't buy anything from my local MB dealer if I don't have to.

 

[urchin]

Originally Posted By: DavidZ28


You hit the nail on the head. Pricing is dependant upon attitude sometimes. I'm at the dealership level and I HATE when someone I've never seen before says "is that MY price?" I've warned my manager that one day I'm going to confront a customer on this and it's not going to be pretty. Try pulling that haggle tactic or "is that MY price?" at Wal-Mart or Kroger and see what happens.


You do need to understand that times are tough now, things are way different than they were just five years ago. Granted the customer should be polite and respectful too but there is NOTHING wrong at all haggling over prices today, it is not just about value it is about the necessity of getting the price to an affordable level so a sale can be made.

 

[Bamboooo]

Originally Posted By: urchin
Originally Posted By: DavidZ28


You hit the nail on the head. Pricing is dependant upon attitude sometimes. I'm at the dealership level and I HATE when someone I've never seen before says "is that MY price?" I've warned my manager that one day I'm going to confront a customer on this and it's not going to be pretty. Try pulling that haggle tactic or "is that MY price?" at Wal-Mart or Kroger and see what happens.


You do need to understand that times are tough now, things are way different than they were just five years ago. Granted the customer should be polite and respectful too but there is NOTHING wrong at all haggling over prices today, it is not just about value it is about the necessity of getting the price to an affordable level so a sale can be made.


I agree with both of you. If the customer said, "Is that the best price I can get? I'm on a budget and money is tight", then I can see the dealership easing up on him a little bit. But, when you get an arrogant customer, who expects a discount, STICK IT TO HIM!!!!!

 

[HTSS_TR]

Originally Posted By: Bamboooo
Originally Posted By: urchin
Originally Posted By: DavidZ28


You hit the nail on the head. Pricing is dependant upon attitude sometimes. I'm at the dealership level and I HATE when someone I've never seen before says "is that MY price?" I've warned my manager that one day I'm going to confront a customer on this and it's not going to be pretty. Try pulling that haggle tactic or "is that MY price?" at Wal-Mart or Kroger and see what happens.


You do need to understand that times are tough now, things are way different than they were just five years ago. Granted the customer should be polite and respectful too but there is NOTHING wrong at all haggling over prices today, it is not just about value it is about the necessity of getting the price to an affordable level so a sale can be made.


I agree with both of you. If the customer said, "Is that the best price I can get? I'm on a budget and money is tight", then I can see the dealership easing up on him a little bit. But, when you get an arrogant customer, who expects a discount, STICK IT TO HIM!!!!!

I don't expect discount from a dealer, but I expect dealer price should not be more than list price. Customer should not begging dealer to sell parts at list price.

I'm not an arrogant customer, when I bought the battery for my E430 few months ago, I checked and decided to buy Motorcraft BXT-49. There are few Ford dealers around, a dealer discounts 15% from list price but a little far, the closer dealer discounts 5%. I called the closer dealer and politely asked if they would match other dealer price, they did and I bought my battery from them.

 

[urchin]

Originally Posted By: HTSS_TR

I don't expect discount from a dealer, but I expect dealer price should not be more than list price. Customer should not begging dealer to sell parts at list price.


Although this is correct in theory, these dealers ...um stealers, are independent franchises and can charge whatever they think they can get away with, which is how most of them operate.

Best thing to do is request the wholesale price and tell them if they can do this on a regular basis you will give them return business. You still should be polite though. It isn't the parts counter guy that determines the prices it is the owner of the store of the manager. If you have a concern talk to one of them about it.

 

[MrCritical]

If they sell to you at 15%, what do you think they're charging employees?

I'd check that price if I was you.

 

[hooligan24]

last time I went to the dealership for some parts, they wanted a total of $63 for 2 axle/spindle nuts, and 2 dust covers that cover the spindles.

I ordered them online for a grand total of $16.XX for OE parts

 

[White 03]

I bought a oil filter from my Honda dealer a few years ago and the parts guy asked if I would like a gasket for the drain bolt. I politely said sure and thanked him. He nicely taped it to the filter box so I wouldn't loose it. When I paid the bill I found the gasket was a dollar.

Since then I have been buying on line whenever possible. Local price seems to be 25 to 30% above list. On line often seems to be that much under list. Dealer almost always has to order my parts so why not get them delivered to my door. Often seems they won't sell parts they have on hand; could they be saving them for their shop?

 

[LS2JSTS]

Originally Posted By: rat
.... but the owner takes the first $30,000 of profit each month for himself...


...to pay the electric/gas/water bills, some here would be shocked at how quick those climb into the thousands in this business.
...to pay the local and state taxes.
...to pay for EPA/OSHA inspections and possible fines/cleanup.
...to partially fund a multi million dollar floor plan and inventory.
...to partially pay the salaries of all the office and front/back of the store non sales personel.
...to pay for your workers compensation insurance.
...to pay for the exorbinant liability/theft/damage insurance one has to keep on the business and storage lots.
...to pay to repair the inevitable employee caused "lot rash" damage that occurs at every dealer, everywhere.
...to pay the huge advertising bills.
...to pay for the little league team sponsorship...lol

And then he gets to pocket a percentage of that $30,000.

 

[rat]

Originally Posted By: LS2JSTS
Originally Posted By: rat
.... but the owner takes the first $30,000 of profit each month for himself...


...to pay the electric/gas/water bills, some here would be shocked at how quick those climb into the thousands in this business.
...to pay the local and state taxes.
...to pay for EPA/OSHA inspections and possible fines/cleanup.
...to partially fund a multi million dollar floor plan and inventory.
...to partially pay the salaries of all the office and front/back of the store non sales personel.
...to pay for your workers compensation insurance.
...to pay for the exorbinant liability/theft/damage insurance one has to keep on the business and storage lots.
...to pay to repair the inevitable employee caused "lot rash" damage that occurs at every dealer, everywhere.
...to pay the huge advertising bills.
...to pay for the little league team sponsorship...lol

And then he gets to pocket a percentage of that $30,000.






No, the $$ in question is after expenses.

 

[rat]

Originally Posted By: urchin

I don't expect discount from a dealer, but I expect dealer price should not be more than list price. Customer should not begging dealer to sell parts at list price.



I agree with this. I do have an issue with people that insist on owning a Corvette or an Escalade or whatever high end vehicle and throw a fit at the parts counter over how much parts cost to fix their toy. They act like since they had to pay this much for the car, everything else should be free as long as they own it.

 

[brianl703]

Originally Posted By: moving2
Hootbro- rat wasn't disputing the legality of the owner's actions, or whether or not it is the owner's right to do as he pleases. He was talking about the morality of his actions.


The law is a minimum ethical standard. An action that is legal may not necessarily be considered ethical.

 

[82DMC12]

Originally Posted By: rat
Originally Posted By: LS2JSTS
Originally Posted By: rat
.... but the owner takes the first $30,000 of profit each month for himself...


...to pay the electric/gas/water bills, some here would be shocked at how quick those climb into the thousands in this business.
...to pay the local and state taxes.
...to pay for EPA/OSHA inspections and possible fines/cleanup.
...to partially fund a multi million dollar floor plan and inventory.
...to partially pay the salaries of all the office and front/back of the store non sales personel.
...to pay for your workers compensation insurance.
...to pay for the exorbinant liability/theft/damage insurance one has to keep on the business and storage lots.
...to pay to repair the inevitable employee caused "lot rash" damage that occurs at every dealer, everywhere.
...to pay the huge advertising bills.
...to pay for the little league team sponsorship...lol

And then he gets to pocket a percentage of that $30,000.






No, the $$ in question is after expenses.


So what? You didn't put up the money to invest in owning a dealership and you have very little risk if the dealership goes under. How do you figure you are entitled to anything beyond your regular wages? THIS is what is wrong with America.

 

[rat]

[/quote]
So what? You didn't put up the money to invest in owning a dealership and you have very little risk if the dealership goes under. How do you figure you are entitled to anything beyond your regular wages? THIS is what is wrong with America. [/quote]

I have to disagree, and here is why.
The owner is a second generation dealer owner, his father started it in '68 and made it the well oiled machine it is today. This man had everything handed to him, and knows nothing about struggling to pay bills, much less cost of living. His dad knew the value of good employees, and paid generously, so that in turn the employees would want to work hard for him and not feel taken advantage of. When times were tough, he is the one that took the pay cut, so that the people that needed the jobs would not have to suffer. He had plenty of money and did not feel the need to be greedy.
The current owner is quite the opposite. Believe me when I say if the doors were to close today, he and his family and their families would be quite comfortable.
I see your point about thinking I deserve more than I am worth, but we, the employees are the ones on the front lines doing the work, and making him all this money. This year parts sales are almost double what they were last year, and no one here has heard him say "good job" or anything like that. Instead, we have a meeting tonight to discuss how we can do more. Reminds me of all the corporate CEO's that make multi millions, yet cut employee wages and benefits, send jobs over seas and wonder why the economy sucks.
That my friend, is what is wrong with America.

 

[Quest]

point taken, rat.

I've seen lots of those similar to your boss around in da hood, and while I'm not impressed with time (no jobs, still attending schools (out of parent's expense) on student visa, driving masaretis, ferraris, lamboroghnis, etc. that worths almost 1/2 of our house here; etc. wearing watches that worth 10s of thousands of dollars, etc.

these are what we called "2nd gen" that do not know the value of $$.

We have an age-old saying: wealth typically loops (in circles) in 3 generations:

1st gen: worked their bums off to build the wealth and social status. Deeply understands the hardship/value of $$$.

2nd gen: born in a comfy/cushy family with silver spoon in their mouths, mommy and/or daddy already accumulated wealth and maybe also part of the family biz empire's inheritance....no need to work hard but will be entitled to a cushy job/life, never certain/know the valuve of $$.

3rd gen: again, born with silver spoons in their mouth.typically spoiled brats that get what they want, can be a narcissist for the most part (very self-serving), never understand the value of $$$, wasting their life away and not knowing the folks suffering around him/her....eventually wasted all the family's fortune on stoopid decisions...

and then the family becomes broke...(and the circle of life rotates)

Q.

 

[82DMC12]

Originally Posted By: rat
Originally Posted By: LS2JSTS
Originally Posted By: rat
.... but the owner takes the first $30,000 of profit each month for himself...


...to pay the electric/gas/water bills, some here would be shocked at how quick those climb into the thousands in this business.
...to pay the local and state taxes.
...to pay for EPA/OSHA inspections and possible fines/cleanup.
...to partially fund a multi million dollar floor plan and inventory.
...to partially pay the salaries of all the office and front/back of the store non sales personel.
...to pay for your workers compensation insurance.
...to pay for the exorbinant liability/theft/damage insurance one has to keep on the business and storage lots.
...to pay to repair the inevitable employee caused "lot rash" damage that occurs at every dealer, everywhere.
...to pay the huge advertising bills.
...to pay for the little league team sponsorship...lol

And then he gets to pocket a percentage of that $30,000.






No, the $$ in question is after expenses.


Your numbers make no sense. You say he takes the first $30,000 of NET profit. If the net profit margin is even 10% (there's no way the NET margin on over-the-counter parts is higher than that), that means before you start making bonus the parts department sold over a quarter million dollars in parts in one month ($300,000 revenue). I highly highly doubt that. Do you mean to say your dealership sells $3.6M in parts a year? What dealership is this? If the owner found a way to sell that many parts then [censored] right he deserves to take home the first $30K net profit. He is a very good businessman.

You are surely talking about gross profit and not net profit. In that case, his $30K is covering the lights, insurance, wages, and all the other things LS2 mentioned.

 

[LS2JSTS]

On top of that 82, I'm just not sure that rat understands how a business is run, and how the accounting/payroll/departmental cash flow gets accounted for. The owner of his dealership most likely draws a salary and bonuses, all accounted for clearly for the IRS to review, if they see fit. An owner of a business cant just take cash off the books and put it in his pocket from a department and not account for it somehow. Thats skimming and it's illegal.

If the owner is operating as rat describes, his business would surely have some pretty cooked up books. The IRS might be interested in a peek at those books...lol.

 

[82DMC12]

Originally Posted By: LS2JSTS
On top of that 82, I'm just not sure that rat understands how a business is run, and how the accounting/payroll/departmental cash flow gets accounted for. The owner of his dealership most likely draws a salary and bonuses, all accounted for clearly for the IRS to review, if they see fit. An owner of a business cant just take cash off the books and put it in his pocket from a department and not account for it somehow. Thats skimming and it's illegal.

If the owner is operating as rat describes, his business would surely have some pretty cooked up books. The IRS might be interested in a peek at those books...lol.


I believe Rat is a typical free-lunch-bunch worker who thinks owners are evil and constantly withholding money that the regular workers have some kind of right to. On top of that, I highly doubt he/she has taken any business courses and understands the difference between things like revenue, profit, gross profit, cost of goods, EBITDA, etc. If this dealership sells over $300,000 a month in over the counter parts, I'd love to know what the name of this dealer is.

 

[urchin]

Bravo rat, your description is absolutely spot on, you can see this pattern in many businesses today, everything you said is true!

A lot of these new generation of "owners" were born with a sliver spoon in their mouth and have no concept of hard work and discipline, and the value of treating good employees well.
Heck, as long as they keep getting the cash they don't even give a [censored] about the customer. I see it ALL the time!

 

[LS2JSTS]

rat, quest, urchin...do you guys really believe this pile of garbage?

What you are posting is pure generalizations, sure some descendants are useless human beings that live off their families wealth...but tell me honestly, aren't there useless people in every class of society content to live off others?

If you care at all about the facts though...look at this list of the biggest private owned companies in America. Investigate some of these companies, you all might be surprised at how many of them are run by second, third and even fourth generation family members.

Forbes Largest Private Companies