Dealership Parts Counter Prices

[moving2]

82DMC12- it seems as if it's impossible, in your world, that rat's complaints could potentially be valid. In your mind, either he is a whiner, or the free-market system means he should just a get a job somewhere else. Well things are not that simple, especially in this economy. And business owners who have inherited million dollar businesses and wealth, through little to no hard work of their own, are not "risking their money" in the same way as the man who founded the business and pulled themselves up by their bootstraps. It is quite common that such families have enough wealth stashed away or in assets that their risk is not what you're making it out to be, especially when the business infrastructure, organization, policies, assets, wealth, and advice are handed to them on a silver platter vs. developing all of that themselves. You have a view that is just as one-sided as those you are criticizing.

Yes, I am sticking up for the man behind the counter because it's unbelievable the things business owners assume about what it's like for their employees. Laughable.

Coin: 2 sides.

 

[LS2JSTS]

I'll never understand this "inherited" argument, I view it as entirely classist. Income Tax, Capital Gains Tax, Property Taxes, the Death Tax...this money has been taxed over and over again. Do you propose that upon death all accumulated wealth be turned over to the state?

Why is whether the money was inherited or earned somehow relevant, it's his? The guy is putting the money to work and employing people, instead of living off it on some beach somewhere...in all likeliehood he should be commended. Not labeled like some kind of trust fund baby.

btw...rat or anyone else out there. There are dealerships that are for sale currently. Just give me a call and bring your cash...lol...I'll set you up. If any of you wants to risk your wealth and put in a LOT of time and sweat, you too can be a successful car dealer...if you can compete with the syndicates, but thats a whole nother issue.

 

[82DMC12]

I'm still waiting to find out the name of the dealership that sells over a quarter million in auto parts per month so that the owner takes a net profit of $30,000.

Yes there is probably some dealership somewhere where the son took over the dealer, knows nothing about the business, and robs it blind. Luckily the market will sort that kind of nonsense out.

Either way, anyone who owns a dealer and gets a $30,000 net profit every month just from selling wiper blades, air filters, brakes, and knock sensors is an American Hero in my book!

 

[LS2JSTS]

Originally Posted By: 82DMC12
I'm still waiting to find out the name of the dealership...



I would love to know the name of the dealership as well.

There are a few dealers here in Michigan where rat is, that have huge volumes in sales, parts and retail unit numbers. A small subset of those are family owned, and not syndicate run. An even smaller sub set is second generation owned. I have a few hunches at what dealership we may be talking about...and in a few of those cases I could directly counter many of the "entitlement" mentality arguments being thrown around here. If it's two dealers I'm familiar with that fit this description in particular. Well then press links to a life spent in the business demonstrating both hard work and community involvement are in the can waiting to be posted.

If he's smart rat will never name the dealer, I wouldn't if only for self preservation considering some of his comments here.

 

[moving2]

Originally Posted By: LS2JSTS
I'll never understand this "inherited" argument, I view it as entirely classist. Income Tax, Capital Gains Tax, Property Taxes, the Death Tax...this money has been taxed over and over again. Do you propose that upon death all accumulated wealth be turned over to the state?


I don't have to tell you about the tax rate of the wealthy vs. the middle class. I believe the "classist" buzzword that's being thrown around so carelessly these days applies more to the example of secretaries paying a higher % of tax than their wealthy employers than anything you could think of.


Originally Posted By: LS2JSTS

Why is whether the money was inherited or earned somehow relevant, it's his?


Because inheriting a successful business along with a lot of wealth and assets is a lot like winning the lottery. It is certainly not like earning it. In the case of a business that is successful, it is more like a golden goose.


Originally Posted By: LS2JSTS

The guy is putting the money to work and employing people, instead of living off it on some beach somewhere...in all likeliehood he should be commended. Not labeled like some kind of trust fund baby.


Oh I see. So the employees are selfish brats, but the employers are selfless people only looking to help others by employing them. Why are they putting their money to work and employing people? Because a fixed amount of wealth only goes so far. Investing it (in a business, for example, especially a successful business with history and where you've been shown the ropes) is a way to maintain the wealth within and beyond your own generation. Even if such a business is not very successful in your own generation, keeping it alive is not only a legacy, but it can help provide for future generations as the economic cycle progresses.


Originally Posted By: LS2JSTS

btw...rat or anyone else out there. There are dealerships that are for sale currently. Just give me a call and bring your cash...lol...I'll set you up. If any of you wants to risk your wealth and put in a LOT of time and sweat, you too can be a successful car dealer


What does this have to do with what rat is talking about? You think rat has the money to purchase a dealership- working behind a parts counter? A dealership wasn't handed to him along with plenty of wealth and advice and a silver spoon. If you want to address rat directly, go ahead and hand him a successful car dealership, where he'll be shown the ropes, and ask him to continue running it, along with a lot of wealth and assets- and I'll betchya' he can be a more successful dealer than his employer is. That is, if you want an apples to apples comparison, since you seem to be addressing rat directly.

 

[rat]

Originally Posted By: 82DMC12
I'm still waiting to find out the name of the dealership that sells over a quarter million in auto parts per month so that the owner takes a net profit of $30,000.

Yes there is probably some dealership somewhere where the son took over the dealer, knows nothing about the business, and robs it blind. Luckily the market will sort that kind of nonsense out.

Either way, anyone who owns a dealer and gets a $30,000 net profit every month just from selling wiper blades, air filters, brakes, and knock sensors is an American Hero in my book!




The name will not be mentioned, I'm sure you can understand why. And you have to remember, this is not Autozone. We sell to many repair facilities and many many body shops in an approx. 70 mile radius. Thats in addition to the walk in retail and our own body shop and service department.

 

[rat]

Originally Posted By: LS2JSTS

btw...rat or anyone else out there. There are dealerships that are for sale currently. Just give me a call and bring your cash...lol...I'll set you up. If any of you wants to risk your wealth and put in a LOT of time and sweat, you too can be a successful car dealer...if you can compete with the syndicates, but thats a whole nother issue.


I think you would agree that starting up a new car dealership/franchise was probably easier in the 50's and 60's, which is when most of them started popping up. Now they are on to their second and sometimes third generation owners unless they sold out to another family of dealers. The economy was a complete different story back then. Trying to start one today would be extremely risky at best. 3 of the former dealerships that I have worked for have closed their doors in the past 10 years.

 

[LS2JSTS]

Oh yeah,, get Buffett and his secretary involved...lol. Just another lie, a set of twisted facts to misrepresent the real truth.


If you want to know how far off Buffett is on the actual numbers read the WSJ, Chicago Trib, LA Times...heck even the NY Times have pointed out the clear fallacy in Buffetts facts. If you dont trust the media go look at the governments own OMB numbers. But don't let that get in your way.

As for the rest of your rant, where did I ever call employees "spoiled brats"? I would kindly ask that you refrain from putting words in my mouth.

 

[LS2JSTS]

Originally Posted By: rat
Originally Posted By: LS2JSTS

btw...rat or anyone else out there. There are dealerships that are for sale currently. Just give me a call and bring your cash...lol...I'll set you up. If any of you wants to risk your wealth and put in a LOT of time and sweat, you too can be a successful car dealer...if you can compete with the syndicates, but thats a whole nother issue.


I think you would agree that starting up a new car dealership/franchise was probably easier in the 50's and 60's, which is when most of them started popping up. Now they are on to their second and sometimes third generation owners unless they sold out to another family of dealers. The economy was a complete different story back then. Trying to start one today would be extremely risky at best. 3 of the former dealerships that I have worked for have closed their doors in the past 10 years.


Yes it was, my Grandfather owned a dealership for close to fifty years. Sold out to the syndicates when competeing with them became almost impossible.

But your point about the risk, just bolsters my point. This guy who owns your store could have just sold to the syndicates, and they likely would have closed the shop down to eliminate the competition, they do it all the time. Many smaller dealers have been shuttered by the trend to large group owned dealerships...as I'm sure you know.
Instead of selling out and just living off the proceeds, which your boss could have easily done. He is fighting back and keeping things going, in my book that counts for something.

 

[rat]

Originally Posted By: LS2JSTS
Originally Posted By: rat
Originally Posted By: LS2JSTS

btw...rat or anyone else out there. There are dealerships that are for sale currently. Just give me a call and bring your cash...lol...I'll set you up. If any of you wants to risk your wealth and put in a LOT of time and sweat, you too can be a successful car dealer...if you can compete with the syndicates, but thats a whole nother issue.


I think you would agree that starting up a new car dealership/franchise was probably easier in the 50's and 60's, which is when most of them started popping up. Now they are on to their second and sometimes third generation owners unless they sold out to another family of dealers. The economy was a complete different story back then. Trying to start one today would be extremely risky at best. 3 of the former dealerships that I have worked for have closed their doors in the past 10 years.


Yes it was, my Grandfather owned a dealership for close to fifty years. Sold out to the syndicates when competeing with them became almost impossible.

But your point about the risk, just bolsters my point. This guy who owns your store could have just sold to the syndicates, and they likely would have closed the shop down to eliminate the competition, they do it all the time. Many smaller dealers have been shuttered by the trend to large group owned dealerships...as I'm sure you know.
Instead of selling out and just living off the proceeds, which your boss could have easily done. He is fighting back and keeping things going, in my book that counts for something.


I want to be clear, I am very thankful for my job, especially in this economy. And to be fair, the owner himself makes very few decisions. He has a general manager that really calls the shots and just has the owner sign his name when necessary.

 

[mechanicx]

Originally Posted By: rat
Originally Posted By: LS2JSTS

btw...rat or anyone else out there. There are dealerships that are for sale currently. Just give me a call and bring your cash...lol...I'll set you up. If any of you wants to risk your wealth and put in a LOT of time and sweat, you too can be a successful car dealer...if you can compete with the syndicates, but thats a whole nother issue.


I think you would agree that starting up a new car dealership/franchise was probably easier in the 50's and 60's, which is when most of them started popping up. Now they are on to their second and sometimes third generation owners unless they sold out to another family of dealers. The economy was a complete different story back then. Trying to start one today would be extremely risky at best. 3 of the former dealerships that I have worked for have closed their doors in the past 10 years.


Yet I have more respect for the ones that started out all by themselves even if it were easier back then. They tended to treat the personnel better and were good to work for. It's the newer and 2nd or 3rd generation that can be all about maximimum profit. The bad thing is they sometimes buy out and put out of business the other ones. It's the same "Walmart effect" that can apply to every thing else. In the end if you are not one of the "walmart" owners then you're nothing. We as consumers are sometimes as much to blame.

 

[moving2]

Originally Posted By: LS2JSTS
Oh yeah,, get Buffett and his secretary involved...lol. Just another lie, a set of twisted facts to misrepresent the real truth.
[...]


Forget one example- let's look at the larger point here. Independent analysis by Politifact proved this statement true "Warren Buffett says the super-rich pay lower tax rates than others". The point remains: the wealthiest Americans pay a lower tax % than the middle class. Try this link and please respond in a way that specifically disputes these facts (instead of vague media references):
http://www.politifact.com/truth-o-meter/...ower-taxes-oth/


Originally Posted By: LS2JSTS

As for the rest of your rant, where did I ever call employees "spoiled brats"[...]


I see..."the rest of my rant" consisted solely of calling employees "spoiled brats", etc. So your strategy is to address (feign offense at) the lowest-hanging fruit so you can ignore the meat of my post. Nice try, if a bit transparent. But I won't let you get away so easily!

Here goes again, without the low-hanging fruit. Would be interested in your response.


Originally Posted By: LS2JSTS

Why is whether the money was inherited or earned somehow relevant, it's his?


Because inheriting a successful business along with a lot of wealth and assets is a lot like winning the lottery. It is certainly not like earning it. In the case of a business that is successful, it is more like a golden goose.


Originally Posted By: LS2JSTS

The guy is putting the money to work and employing people, instead of living off it on some beach somewhere...in all likeliehood he should be commended. Not labeled like some kind of trust fund baby.


Why are the wealthy 2+ generation dealership owners putting their money to work and employing people instead of relaxing on a beach somewhere? Because a fixed amount of wealth only goes so far. Investing it (in a business, for example, especially a successful business with history and where you've been shown the ropes) is a way to maintain the wealth within and beyond your own generation. Even if such a business is not very successful in your own generation, keeping it alive is not only a legacy, but it can help provide for future generations as the economic cycle progresses.


Originally Posted By: LS2JSTS

btw...rat or anyone else out there. There are dealerships that are for sale currently. Just give me a call and bring your cash...lol...I'll set you up. If any of you wants to risk your wealth and put in a LOT of time and sweat, you too can be a successful car dealer


What does this have to do with what rat is talking about? You think rat has the money to purchase a dealership- working behind a parts counter? A dealership wasn't handed to him along with plenty of wealth and advice and a silver spoon. If you want to address rat directly, go ahead and hand him a successful car dealership, where he'll be shown the ropes, and ask him to continue running it, along with a lot of wealth and assets- and I'll betchya' he can be a more successful dealer than his employer is. That is, if you want an apples to apples comparison, since you seem to be addressing rat's comments directly.

 

[moving2]

Originally Posted By: 82DMC12
I'm still waiting to find out the name of the dealership that sells over a quarter million in auto parts per month so that the owner takes a net profit of $30,000.


82DMC12- why do you persist in trying to make rat reveal the name of the dealership? If you knew anything about business, you would understand why he cannot do this. So, while you think you might be making a point here, you are really just underlining the fact that you have no idea what it's like for employees at a car dealership.

 

[82DMC12]

Originally Posted By: moving2
Originally Posted By: 82DMC12
I'm still waiting to find out the name of the dealership that sells over a quarter million in auto parts per month so that the owner takes a net profit of $30,000.


82DMC12- why do you persist in trying to make rat reveal the name of the dealership? If you knew anything about business, you would understand why he cannot do this. So, while you think you might be making a point here, you are really just underlining the fact that you don't know what it's like for employees.


Because I would be extremely surprised that there is a dealership that is able to make a NET PROFIT of $30,000 in a month on the parts department. I do not believe the volume could be there considering the modest margins that would be available. I did not believe rat's numbers, which seemed to indicate he was very naive if he thought the owner was taking $30,000 NET and not GROSS. I wanted to know what dealership this is that can clear that kind of NET profit. Still haven't found out which one it is. That is an INSANE amount of money in the pocket from selling auto parts. I could see if it were a multi-brand-multi-location company but one dealer.... not so much.

Either way, I'm done with this thread. I think my point has been made.

 

[LS2JSTS]

Maybe you should dig a bit deeper into what they have to say about the topic. While in that specific instance, Buffett vs his secretary, it may be true. For the entire group of people who earn over 1 million per year, it is in fact false. So I guess if in your world, exceptions prove the rule...then have at it. I prefer the actual real facts, the whole story, not just a slice of the pie.

And keep in mind Buffett still never has released the returns he is using to get these percentages, to the best of my knowledge. If you have a link, I'd love to see it. But the point is, we don't even know what incomes he's using to figure the percentages, it would be very helpful to know, are they the net, the gross...the adjusted net incomes? We dont know what percentage of his pay was salary and what was capital gains and this effects the end percentage to a great degree. It's entirely possible, that it's true in his case, but that doesn't make your statement true, as in the much larger majority of cases, its false.

WRT, Politifact, maybe you should have read what their opinion is of the truth of the statement with regard to all million plus wage earners instead of just Buffett...like I said, it's just a half truth lie designed to fool the foolish.

You, just like the sopus misuse a sliver of the truth to misrepresent it as the whole truth. In my book thats a lie...

Does a secretary pay higher taxes than a millionaire?

And again, wrt to the rest of your jibberish...it amounts to nothing more than white noise, petty jealousy, honestly. With your "silver spoon", "golden goose", "lottery" comments, frankly, you sound like the majority of your knowledge about the rich and what they do and act like comes from watching television. Bunch of doofs who just fall haphazard into their money....GET A CLUE!

 

[bdcardinal]

Originally Posted By: 82DMC12
Originally Posted By: moving2
Originally Posted By: 82DMC12
I'm still waiting to find out the name of the dealership that sells over a quarter million in auto parts per month so that the owner takes a net profit of $30,000.


82DMC12- why do you persist in trying to make rat reveal the name of the dealership? If you knew anything about business, you would understand why he cannot do this. So, while you think you might be making a point here, you are really just underlining the fact that you don't know what it's like for employees.


Because I would be extremely surprised that there is a dealership that is able to make a NET PROFIT of $30,000 in a month on the parts department. I do not believe the volume could be there considering the modest margins that would be available. I did not believe rat's numbers, which seemed to indicate he was very naive if he thought the owner was taking $30,000 NET and not GROSS. I wanted to know what dealership this is that can clear that kind of NET profit. Still haven't found out which one it is. That is an INSANE amount of money in the pocket from selling auto parts. I could see if it were a multi-brand-multi-location company but one dealer.... not so much.

Either way, I'm done with this thread. I think my point has been made.


if it matters on a bad month my parts dept makes $70,000 a month. there are Ford dealers that average $500,000 a month in parts dept profit on wholesale alone.

 

[82DMC12]

Gross or net? Huge difference. Please don't respond unless you are 100% positive.

 

[SteveSRT8]

Those are obviously gross sales, or we'd all be opening parts stores!

And no offense, but I seriously doubt the half a million dollars a month NET? 18 grand a day! That's 6 million a year in just parts PROFITS? Going to need a ton of employees and drivers to get all that out into the shops, and your own UPS truck in the driveway every 15 minutes to pack full! Just hard to believe because even at 50% margin that's just outstanding volume. I agree, that's downright heroic.

I have worked both sides of the fence, as an employee and as a biz owner. There is a distinct mentality that is represented by many who are employees That their boss is some kind of fat cat who earns too much. There's a lot of 'kool aid' being served to play on that and manipulate those folks who drink it.


I am currently employing some of my crews at MY EXPENSE! Meaning I am keeping their jobs by supplementing their pay at the expense of my own. So not all of us evil biz owners are raping and pillaging the employees.

Anyone can work somewhere and get paid to learn the business, then leave and start your own. I did. And if you knew me you'd know I was the LEAST likely person you could imagine to pull that off!

 

[82DMC12]

I don't believe some of these numbers for one second. I don't run a dealer but I'm savvy enough in management and finance to know what's realistic and what's [censored] near impossible. Lot of derp derps on here who are clueless about accounting terminology and don't have a clue how revenues, expenses, and net profit are calculated. Reeks of class envy and union organizing mentality.

 

[rat]

Originally Posted By: 82DMC12
I don't believe some of these numbers for one second. I don't run a dealer but I'm savvy enough in management and finance to know what's realistic and what's [censored] near impossible. Lot of derp derps on here who are clueless about accounting terminology and don't have a clue how revenues, expenses, and net profit are calculated. Reeks of class envy and union organizing mentality.


So don't believe it. I do not claim to be an accounting major, but I have seen and confirmed from the department manager that the department expenses are seperate from the 30k in question. I don't believe you can accurately compare standard business/accounting practices to a dealership environment. The term 'creative accounting' applies as this place has been fined hundreds of thousands when they were caught last time.
I thought you were done with this anyway....