Why are parts prices SO high at the dealership? - PeachParts Mercedes-Benz Forum

skiier3_9 · #1 01-25-2011, 11:22 PM

It seems like most other industries have come around to the idea that if you can buy it cheaper online, we better offer a competitive price in the store.

Today - the belt tensioner on my E430 seizes, shearing off the pulley and rendering the serpentine belt a spiderweb mess under the hood. So I call the dealership to see if they have a tensioner and what their price is... Yes they have the part in stock, it will be $282.

Looking at Fastlane and other online retailers, I find a OEM brands (Febi and Litens) priced around $130. Seriously - that's nearly 50% cheaper!

I am willing to pay a little extra for the convenience of having the part on short notice, but not 50%.

Is there a reason for the madness? (Other than...'because people will pay it')

OMEGAMAN · #2 01-25-2011, 11:26 PM

I've never understood it but lots of times the dealer is cheaper. I have no idea where they get their pricing from. Try a different dealer just to see what the difference is. Maybe try one in a different state.

EricSilver · #3 01-25-2011, 11:35 PM

Parts from AllPartsExpress, under the "Buy Parts" link above, are dealer parts.

When I order from them my package arrives the next day. Not only would that be impossible from Georgia but, a year or so ago, I noticed the return label on an item I purchased was from my local MB dealer. Had I gone to them directly I would have paid a lot more. (Of course, there would have been no shipping charge but I consider that a convenience fee for not having to make the trip myself.)

Fulcrum525 · #4 01-25-2011, 11:35 PM

Quote:

Originally Posted by OMEGAMAN

I've never understood it but lots of times the dealer is cheaper. I have no idea where they get their pricing from. Try a different dealer just to see what the difference is.

Man which dealers are you going to and where can I find them

All the dealers in CT are always more expensive, no exceptions yet found.

aklim · #5 01-26-2011, 12:25 AM

When I buy powerstroke parts from Ford vs International, there is a price difference too. The Ford part comes usually in a Ford bag but very often it has International's instructions and part numbers, etc, etc. Friend works at a dealership and some of the Ford items cost him more than International sells it for.

I think the issue is how many hands it passes thru and also the dealership has to maintain a physical presence. Why is Jegs cheaper than the local O'Riley? Well, quite often it is because it passes thru different hands and also Jegs probably has their store in some cheap place so they pay less and their overheads are less. O'Riley cannot put their store in the middle of BFE and use UPS for everything.

MTI · #6 01-26-2011, 08:55 AM

Have you ever noticed that MBUSA prices are only immune from downward movements in the Euro?

aklim · #7 01-26-2011, 09:02 AM

Quote:

Originally Posted by MTI

Have you ever noticed that MBUSA prices are only immune from downward movements in the Euro?

Can't say I have compared it to the Euro. I'll bite. Why?

Stretch · #8 01-26-2011, 09:24 AM

Quote:

Originally Posted by MTI

Have you ever noticed that MBUSA prices are only immune from downward movements in the Euro?

It is funny that you mention the euro - because here I get the feeling that parts are cheaper where you are - and not where they say they are made.

Obviously the US of A is a large enough market to command wholesale discounts but I must say that the distributors are good enough to pass on at least some of that discount to the customer - whereas I find that it generally not the case here.

mbdoc · #9 01-26-2011, 09:26 AM

In many MB dealerships, including the one that I sometimes frequent....
Car sales rarely pay for their share of the NUT. So the parts department marks up the suggested MBUSA parts pricing by a FACTOR of over 15%, higher percentage on less $$ parts.

If you find a dealer that sells at MBUSA suggested retail...that is a rare dealer indeed.

MTI · #10 01-26-2011, 09:26 AM

Quote:

Originally Posted by aklim

Can't say I have compared it to the Euro. I'll bite. Why?

The Euro has taken a tumble over the past year, MBUSA prices not so much.

Jim B. · #11 01-26-2011, 09:30 AM

Quote:

Originally Posted by skiier3_9

It seems like most other industries have come around to the idea that if you can buy it cheaper online, we better offer a competitive price in the store.

Today - the belt tensioner on my E430 seizes, shearing off the pulley and rendering the serpentine belt a spiderweb mess under the hood. So I call the dealership to see if they have a tensioner and what their price is... Yes they have the part in stock, it will be $282.

Looking at Fastlane and other online retailers, I find a OEM brands (Febi and Litens) priced around $130. Seriously - that's nearly 50% cheaper!

I am willing to pay a little extra for the convenience of having the part on short notice, but not 50%.

Is there a reason for the madness? (Other than...'because people will pay it')

G R E E D

benhogan · #12 01-26-2011, 09:33 AM

Overhead.

mbdoc · #13 01-26-2011, 10:39 AM

Overhead is correct, pay the bills or go broke! Not Greed at all.

Maybe Greed 10-20 years ago, but not today in 95% of car dealers!

rowdie · #14 01-26-2011, 10:55 AM

I use the EPC to obtain part numbers. If I want OEM I have a couple of MB dealer web sites that I order from. They are usually around 20% off MSRP. If OEM is not necessary then I will check the discount houses. Sometimes the dealers prices are less than the discount places.

My "local" dealer is 30 miles away ordered the wrong part the first time I tried them. I also asked about the MBCA dicount and a glazed look came over his face. No discount.

Fulcrum525 · #15 01-26-2011, 11:07 AM

Quote:

Originally Posted by rowdie

My "local" dealer is 30 miles away ordered the wrong part the first time I tried them. I also asked about the MBCA dicount and a glazed look came over his face. No discount.

That's interesting. It seems that a number of dealers have been shying away from honoring the MBCA discounts lately.....