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  #16  
Old 08-23-2018, 10:54 PM
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This is completely normal. As I work for myself as a workshop. We have to use quality parts as we do not want the customer come back with the same issue. Sometimes I am required to use OEM parts as some aftermarket are just rubbish. Parts nowadays is you pay what quality you want. cheap price = cheap quality. As for the repair side. I always call customer first to give a quote If they refuse that is ok go elsewhere. Just checking a car cost me time. I do try give some discount on labour.

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  #17  
Old 08-24-2018, 08:29 AM
vstech's Avatar
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The options are, charge a higher labor rate to cover expenses, or charge a markup on parts that take time to get, and warranty. Higher labor rate affects all parts of the business. Parts markup only affects jobs needing parts.
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  #18  
Old 08-24-2018, 09:18 AM
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My Indy gets a discount on parts purchased (even from MB) and marks them up to the retail price. I don't mind if the price for the part is the same as if I bought over the counter - I wouldn't want to pay more for a part than what I could have purchased myself.
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  #19  
Old 08-24-2018, 10:45 AM
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A part of the issue and a large one at that. The price after all the progressive markups is a retail cost that is pure usery. For example the last knock sensor I ordered from China came in at 10.00 American. The auto parts places in Canada want about 160 American for the exact same part.

That was my cost included mailing for a single item. What do they pay for them at source? five dollars? My guess would be even less.

I normally get the exact same brake parts from north American sources or better for about a third of the local parts supply chains. That price includes two day delivery by courier. Plus they are still making a profit of course.

A lot of people have gotten very rich by not passing the cheaper costs of parts and products made in China along to the consumers. With reasonable markups north America in theory could restart more manufacturing.

That is the problem though. What corporation wants to sell at reduced markups as there is product available that they can make substantially higher markups on. That they do not even have to produce.

You want real abuse. I started buying a lot of things offshore. After going to Wallmart for some electronic memory chips years ago. They wanted about twenty two dollars each for them.

From China at the time .60 cents each including delivery. Plus you know Wallmart pays even substantially less than that when they buy there in bulk.

I also do not know if it applies to all the merchandise many large concerns have on hand. Much of it is on consignment . When an item sells the manufacturer is then paid for it. I see reasonable evidence this practice has and will further destroy smaller concerns.

Going back to the day we considered a 40 percent markup beyond our cost exceptional. My opinion being the fact of not passing things manufactured in China along at fair markups. Has made some corporations very rich and in actuality is an abuse to the customers. Plus even generally to the overall countries.

Another issue is manufacturers that produce items with known mass failure rates of certain parts. I have noticed rather than accept any responsibility and pass along the needed repair parts at fair prices. Still at a reasonable profit. I find they gouge their own customers all too often.

Certain auto parts chains are so profitable they are buying up each other. As quickly as possible. I assume after purchase the names will not be changed to make it look like their is still adequate competition in the marketplace.

I see the average north American consumer as semi trapped. I fully am aware everyone has to make a dollar. At the same time this can or may have already become an unbalanced situation.

For some reason we seem unable to elect politicians that understand that allowing certain things to persist and grow. Beyond greed within reason Is an ongoing downward slope for too high a percentage of the population. Excess credit is used by far too many to meet their basic requirements under this situation.

I do not think it is only supply and demand in far too many cases. In my own case of doing a job for ourselves at this time. I found 10.00 each plus tax too high at this time for 10 foot 2x6s. Or 40.00 a sheet for sheathing grade plywood.

So I salvaged good floor joists and re sawed them. Plus sought out good used plywood. A new 2x12 12 feet long is also currently about 40.00 each with tax. It really adds up when you are using a lot of materials. What I did find was that sources and availability of what I required used. Where far scarcer than I ever remember.
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  #20  
Old 08-24-2018, 06:59 PM
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You can't send a letter from Peking to New York for $10. So the question is, how can they sell you a sensor for $10, including shipping. They really can't. My experience is that what you get "direct" is likely to be a rejected or stolen part, and that the shipping is also stolen.

The markups applied by everyone in the supply chain usually pay for some sort of service or performance warranty. So you can buy a crappy sensor from Hong Kong for $10, and replace it ten times at $10. Or you could buy the exact same part with a brand label and a performance warranty. If you buy it through a mechanic's shop, the mechanic guaranties the part, installed. In addition, each part has to pay a share of the overhead cost of doing business...buildings, credit card processing, health insurance, training, etc. If you think it's usury, try to do it yourself. You'll find that it's very hard to resell that $10 part for $11 and make a profit.
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  #21  
Old 08-25-2018, 06:57 AM
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If the government or any entity dictates or mandates how much I can charge for my services I will simply stop providing the services.

If the government or any entity dictates or mandates how much I can charge for my services I will simply stop providing the services.

If the government or any entity dictates or mandates how much I can mark up items for resale I will simply stop offering those items.

Fortunately (speaking for myself) I can simply do something different for a living if need be. I don’t want to work on my cars too much any more, I can’t see as well as I once did. I’m grateful to the indy shops that still take the time to repair my aging fleet of refugies from a junk yard.

So the new radiator in the Benz had a mark up, it beats the heck out of a new Toyota.
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  #22  
Old 08-25-2018, 07:44 AM
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whats evil is that an oil filter for my 240D is approx $15 from the classic center (standard)

$28 from one MB dealer by me and $35 from another MB dealer by me.

I once called my local MB dealer to buy a rad cap for my 240D. They wanted $120! I then called another who said they had it in stock and could sell it to me for $50. I called the other dealer back to tell them how absurd their mark up was.

I'm all for independent shops marking up parts to make a living. Not so much for the mercedes dealers and there INSANE mark ups.
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  #23  
Old 08-25-2018, 02:38 PM
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As a retired shop owner I agree with this post 100%

I also would put the brand name of the part on the invoice and the warranty period. This made it easier to explain quality and the difference between a $.99 burger and a 4.99 burger.

Never had an accusation that I was overcharging.

Quote:
Originally Posted by OM617YOTA View Post
Full disclosure, I didn't watch the 19 minute video.

The purchaser is told the cost of the parts the mechanic is supplying before they agree to the repair. If they don't like the cost, they're free to decline the repair or go elsewhere. All liability for the cost of the parts rests on the purchaser at that point. No, not evil, not at all.

Yes shops should absolutely mark up the parts they sell, as well as refuse to install discount or any kind of reduced quality parts. They're warrantying the repair, they're accepting the risk of that part working properly and having to replace it if it doesn't. Nothing at all wrong with limiting that risk as much as reasonably possible, and getting paid for accepting that risk.
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  #24  
Old 08-25-2018, 07:48 PM
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Exclamation

The bitterness of low quality remains long after the sweetness of low price is forgotten .

Everyone wants a deal RIGHT NOW but doesn't want to accept any responsibility .
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  #25  
Old 08-26-2018, 03:57 AM
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Quote:
Originally Posted by vwnate1 View Post
The bitterness of low quality remains long after the sweetness of low price is forgotten .

Everyone wants a deal RIGHT NOW but doesn't want to accept any responsibility .
+1

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