Dealer economics on parts (rhetorical) - PeachParts Mercedes-Benz Forum

taaboo · #1 11-10-2003, 12:51 PM

I like to support Fastlane, but I also like to 'oil the local economy', and check with our local dealer occasionally for parts. The fuel pump relay went out on our 300TE this weekend, it's a pain driving to work and back with the relay jumpered, so I gave a call to the parts department at the dealer.

Long story short, would not budge one bit off price for their relay, which is nearly $60 over what you can get it for at any respected web parts supplier ($160 MSRP, $100ish from web).

Offered to split the difference with them, no way. What is it about dealer economics that I'm missing - the chance to make $30 seems better than making $0, right?

Sorry for the rhetorical post - I just find this fascinating.

Brian
89 300TE 192,xxx

GermanStar · #2 11-10-2003, 12:59 PM

You seem to be assuming that Mercedes dealers can purchase parts for the same price that independent distributers can -- and they cannot. They are bound by contract to purchase parts from MBUSA, who is bound to purchase from Daimler Chrysler, who purchases from the local suppliers in Germany. Independent distributers can purchase direct from German suppliers, eliminating some middlemen and lowering the price.

Ron
http://germanstar.net

taaboo · #3 11-10-2003, 01:06 PM

Thank you for the kind reply - yes I did make that assumption. But would you not also assume that MBUSA would generate much more volume and as such get the same/better pricing?

Brian

haasman · #4 11-10-2003, 02:53 PM

I had to run out a couple of weeks ago and get a part for the 190e heater core project. Drove over to the local dealer.

By the parts department is a little sign saying something about welcoming Mercedes Benz Owners Club memebers.

Upon doing the parts transaction I said: "Oh, I see you honor Mercedes Owner's Club memebers ..... please apply that discount to my purchase".

I was told: " Well, if all of our customers were members, then everyone would want a discount, now wouldn't they!" .........

After I pulled my jaw up off the ground, I told their parts person, that was the last time they would ever have my business.

&%$#

Haasman

joe p · #5 11-10-2003, 03:32 PM

LOL.

140 speed sensor. l/f

local dealer......... $270.00 wholesale.

out of town dealer $180.00 wholesale.

get my point?

MBUSA has no control over pricing. The dealer sset up their own "matrix" and thats that. Now while one would think the same part would be the same price regardless of where you purchased it (within the same general geographic region) that simply isn't the case. Add that to the move of a few years back to "regional" retail centers and well.... now you get my drift.

Joe