The different prices charged for the same item by motor factors always amaze me.
Yesterday I rang a local factors (part of a regional chain) to check price and availability on a set of pads for a job I was doing today (Lockheed Delphi LP871 front pads, to be exact). Now I don't buy an awful lot from this factor, but enough for them 'know me' and to give me a discount. Anyway, they quoted me a discounted price of £12.08 + VAT.
Later that day I dropped by to pick them up. A new lad was working there and came out with an invoice for £29.32+VAT !! I summoned over one of the 'regular staff' and the price dropped back to £12.08+VAT, with an apology that they'd tried to charge me 'retail'. I wonder how many other businesses have such different pricing structures for different customers?
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I used to work for a car manufacturer, and employees could buy service items from main dealers at a discount of 62.5%. Presumeably everybody in the supply chain was still making money.
It's the same buying electrical/plumbing etc stuff from trade specialists - they have a price list which is absurdly high (that's why some people think B&Q is cheaper), but trade get huge discounts.
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Well, the only time I have had access to 'trade' pricing is through Costco Wholesale. Looking through the motoring paraphernalia made me realize how many times i had been done by just about every motor factor, big and small.
Castrol GTX Magnatec 10-40 for about £3.60ltr, your lucky if you get this for under a fiver, and Asda is the only place i can recall having it for under 5 pounds at about £4.50ltr (ish)
Bosch batteries. I changed mine for less than £20. Some larger brands/outlets wanted double that for batteries of unknown quality.
I could go on, but won?t bore you with it.
I would imagine that many businesses have this 'trade' pricing, whereby different customers get differing discounts. Its all a case of economies of scale. The more you buy the cheaper it is, and if you buy plenty, and do it regularly, then your bound to get a discount (like you did). But Joe public, buying 1 oil filter will get charged full price (in your case 'retail'), as the motor factor itself, won't receive trade discounts if they're buying them from the supplier in small quantities too.
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Having worked at a motor factors, mainly on the delivery side, I am amazed at the variation in prices that get charged.
The local chain near me give no discount whatsoever to the general public. However, my old employer had a very good relationship with a main stream factors, thanks to our ex transport manager who had a hand in using these contacts in setting this up.
I usually manage to negotiate some 60 to 65% off the "retail" prices if they have it in stock. I can often negotiate further if I think the price is high.
I find this practice reflected in the building trade. On many lines the discount on the nominal price can be up to 65% or more. However what amaizes me sometimes is that a account with B and Q some 20 miles away, enables cheaper sand to be delivered free than the local builders merchant.
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Think you mentioned Aprilia,or words to that effect he did not know you.Pressume you did not have an account..As you said regular staff know you.Hence discount?
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Steve
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An aquaintance of mine works on the distribution side (yeah thats right he's a truck driver,scum of the earth,just like me!)for a major japanese car manufacturers spare parts operation.He was entitled to buy bits at cost price,generally somewhere in the region of about 10% of the over the counter price.....
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>>An aquaintance of mine works on the distribution side (yeah thats right he's a truck driver,scum of the earth,just like me!)
tartanraider.What made you say that.I dont think that is a neccesary remark to be made on subject that has no relation
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Steve
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I shouldn't worry Steve. TR and another of his truck buddies have had their accounts blocked and been told to return from whence they came. Or words to that effect.
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Motor factors are basically a cash and carry operation and serve the trade - hence the regular deliveries to garages and repair centres.
Some, but not all, are prepared to serve the general public but do add a markup on the trade price, which would be the same situation no matter what type of goods were being sold.
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I work at a motor factors and the discount we give to trade customers who have accounts is 40%, which still leaves a bit of profit for us. The big money is to be made selling over the counter to normal customers.
Ben
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All those on here who say "You get what you pay for" please take note!
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>>All those on here who say "You get what you pay for" please take note!>>
Somewhat at a loss to understand that - retail prices are equally relevant with regard to the quality of the product and trade prices will be pro rata.
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What\'s for you won\'t pass you by
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I assume trade volumes are greater than retail which accounts for the discount. In which care (like cars) the private buyer is keeping the sistributors in business by providing the profit.
No wonder ebay/discount parts do well...
madf
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The thing is, the trade get them cheaper, get them delivered to the door, and can pay later!
I have found my local Vauxhall dealer nearly always much cheaper than any motor factor if I ask for trade discount (I just end up with a taxi firm's name and address on the invoice) What's more, the motor factor nearly always gives me the wrong part, and there's nothing worse when you have the car jacked up and all your tools out discovering that those brake pads or bushes are incorrect.
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>The big money is to be made selling over the counter to normal customers<
I have mentioned before that a Pug dealer 12 miles from me will sell me 5litres semi-syn, filter and sump-washer for £15 whenever I ask. They also sold me recently a replacement air-con pipe for £45 + VAT, £30 less than quoted by another (nearer) dealer - though that price may have been inflated by the outfit doing the work. The amount I buy gives no cause for the first dealer to give me a big discount - I naïvely assume that some places will play ball, others won't, expecting most people to believe nothing can be gained by shopping around.
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I have found my local Vauxhall dealer nearly always much cheaper than any motor factor if I ask for trade discount
Certainly Vauxhall Trade Club is THE best for genuine GM parts at dicounts, over & above normal 'trade' terms.
& not only on service items, oils are lowest prices, compared to anywhere - they have a cmtinuing buy 3 get 1 free 0n 5ltr packs. So semi synthetic = £6 / pack inc vat, synthetic £12.
Even engines are given extra discounts.
How some the independents make a living, I'll never know!!
VB
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Yes, I'm in the local GM 'Trade Club'. Actually I seldom use them these days because I haven't had much to do with any Vauxhall cars lately (worked on quite a few Omegas in the past though...;-( ). I still get oil from them though - fully synth works out at £2/litre and its good stuff.
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