I just don't understand what is going on.
I'm buying parts at trade prices for various makes on a daily basis....with a particular bias towards Citroen/Peugeot.
It used to be simple. Public paid retail and the trade paid trade prices. Now it is all over the place.
It is now almost impossible to buy at the local motor factors as they are undercut by two shops in the city that open from 9-6, 7 days a week...and with lower prices.
A local town shop and another town garage sell oil at half the factors trade price.
I wanted a brake caliper the other day. Main dealer wanted £153, factors "special" price to me £112....yet a credit card order found a mail-order specialist delivering it next day for just £52! And this was an OE part outright with no need to return the old unit.
My local factors mumble about dodgy parts in white boxes and the fact that the mail-order don't have the overheads of a depot in every town plus a fleet of vans to run.
If they bury their heads in the sand like this they will find others with their business.
Amazon car parts anyone?
And what about the car makers? If ??? can knock out these brake calipers (for example) at £52 how much should the dealer reasonably charge... 50% more? ...100% more? ...but 200% more...come on guys.
M.M
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MM - is there any way that these mail-order parts could be copy parts in convincing packaging?
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Andrew,
No not at all. Trust me the origin of the parts isn't in doubt, just the amazing price variation....and that the traditional trade motor factors can be undercut by two outlets in town and more so by the mail order guys....who are selling to the public.
M.M
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MM - is this magic mail-order place for general consumption? What bits do they do - regular needs, or the whole product range?
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When I used to work in the midlands I nearly always got parts at trade prices and wouldn't do repeat business with outlets that offered me inflated prices and wouldn't give a discount - out of principle.
My local motor factors are very expensive and they won't give me any discount what so ever. A concept I find totally alien, as even the Citroen Main Dealer gives 10% when I ask nicely.
However, I have a good relationsip with Express Factors in Plymouth. Although they won't deliver to me, they do deliver to my local garage, who is happy to put the bits aside for me.
H
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MM,
I can only speak for the bearing trade - but the chain goes something like this.
Popular front wheel tapered roller bearing LM11949-LM11910 - prices are not in Sterling but same progression;
Cost to importer 3.02 -( Official LIST price is 15.17)add 30% gross margin = 4.31 - sell to distributor - 4.31
Dist adds 30% gross margin = 6.16 - sells to sub distributor 6.16
Sub adds 30% gross margin = 8.80 - sells to garage - 8.80
Garage adds 30 GM = 12.58
So any one can give '10% off list price' = 13.65 and make a lot at any stage of the chain....clearly, if any smart company manages to 'jump' one level of the chain they can make a fortune and still undercut the next level.
It can get worse where the can maker gives the same bearing thier own part number and price - I got a set of Mercedes front wheel bearings for a mate who was quoted £52-00 - my cost was £2-85.
Matt35.
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Interesting Matt.
What puzzles me a little, more than the mail order issue, is how a large and enterprising independent parts shop can supply to the public below the trade prices local factors will give me.
The problem is that it can make a fool of you when invoicing up to a retail customer at prices so far above ones available to them.
Andrew.
Actually no magic in the mail order guys...it's GSF/Andyspares. Their catalogue prices are keen enough and beat the motor factors on most things, but I get their trade prices which are something else again.
M.M
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MM,
I used to work for the firm making engine mounts (among other bits) for the old frontera. We sold them to Vauxhall at less than 2ukp each. Go into vauxhall, ~12ukp each. Needless to say, the owners of the three fronteras in the car park all had a complete set!
Joe
p.s. the firm made less than 10p per part!
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