O.T/ it's gotta be GREED!!!

Coming back from or new found friends home where we are going to receive a new pal (Like Chinos Breed long haired)Had a wonderful meal, met mew people, Played music and had a good time. starting back (Victor was driving) night time (.10 pm , temp was still 98 deg selected LOW BEAM, everything in lights went black. High beam selected, lights came back on, we were about 50 miles from home, so son took the back way so as to miss heavy traffic. Next morning he had to re move most of the column parts on our 99 Yukon . found a wire had vibrated loose from turn signal/dimmer switch. He re-soldered it back (worn in two from vibration)so now all works good except now we don't have low beam on when the jimmy fires up. Daytime running lights low beam works now only when light switch is on. Now comes the greed part. There is a small printed circuit board that has the routing for what we need. Called around to several auto parts stores and the part we want runs any where (internet included ) runs any where from $55.00 excluding s/h/taxes up to
$105.49 still without S/H/-Taxes.We looked online at Rock Auto, total for the same part is $35.00 include S/H,no taxes though. Same part number same article. Thinking about going to wrecking yard but couldn't expect it to be a good part. Can't understand why the gouge. I can bet you folks have experienced the same problem? sorry for the rant, tired of it all, Just a week ago, son replaced the faulty ignition switch assembly. Go Figure for a 1999 Yukon.
Warmest regards LOU & Victor.

I had a 98 Jimmy, took it to the dealer with a miss. They said needs a new dist and just over $500. I said thanks will come back when can afford. Haven't been back yet. Went to parts place $125 and half hour later no more miss.

not really greed . It's based on what their suppliers or wholesaler sells the part for . Then in turn , the mfg they buy from . If it's not a fast moving part number expect it to cost more. Places such as Rock Auto are usually cheaper because of less overhead and large volume . But if I call my comercial guy at advance he will bend over backwards trying to find what I need . Even if it means going to competition to get it .

A co-worker showed to me a price for a unit that we sell. About $1600. The distributor then sells it for almost $2400. That is the American way. Everyone wants more $$$$$$$$$$$.
SDE

Welcome to my life. That $105 would be at least 150 up here. Could easily cost up to $250.(Not a dealer) Just a no name brand from a jobber. That's the biggest reason I deal with Rock Auto. You get top quality brand name parts for 1/3 the price. In 1 year, I've saved well over $1000 on 3 vehicles, with only 2 insured and on the road at any one time.

Called the other day about a shutdown solenoid/coil for a 4 cylinder Hatz engine. The thing is less than an inch square and just over an inch tall, and it's just a coil and plunger, no valve, that bolts to a housing. The price quoted to me was just shy of $400. I can get a brass solenoid valve that's 10 times as big, that includes the valve, and the coil from Grainger for say $50....Granted the one from Grainger won't work in this application, but it's the principle of the matter that gets me.

I took the thing apart last night looking for the pieces that are made of gold and warrant the $400 price tag but never found anthing but a few ounces of copper, so it must be greed that makes it so expensive too....

FSS (fuel shut-off solenoid) for the Bosch VE44 fuel pump- $100+ through Dodge, Cummins, Case, $25 from Volkswagen.

Well lets see if there is a "gouge". Your local parts house is getting their parts through a distubutor network. They also pay local taxes and they have LOCAL people employed. What does Rock Auto have locally??? NOTHING!!!

So lets just order all of your stuff off the Internet an see how many more local businesses close and disappear.

Also I have gotten a few things off of Rock Auto that I could not find locally. On some of their stuff the quality is not very good. It is mainly imported stuff that is cheaper.

Also if you buy more at your local parts store you can get the better price than full retail. My jobber rate is about 60% of the walk-in retail.

Jd. I'm not like you. I don;t run in to a local parts store that charges an arm and a leg for the same part I can get from another store 50 miles away for less then half. I'n not going to rush into a local parts store with a bundle of cash , throw it on the counter and wish em success for just keeping their door open , and nothing more. Our mechanical items we use doesn't get mistreated, worked to death thus allowing me to have discounted price on parts. Were at the mercy(or so they think)of their business to keep our equipment running at their prices.I can almost bet that if you need a part for your equipment you go to a parts store that gives you a discount, and gladly refuse the discount and purchase the part which is 30 percent higher then the competitor located across town. A wise gent once said" a penny saved ,is a penny earned " JMHO LOU .

SDE,
Correct, you just described the new American way,it's pure and simple greed.
LOU

onefarmer,now that's the old American way,good for you.
LOU

Amen ,I buy local if possible . AND if that part fails ,who warranties it ? If I bought it form my local parts store,,,yep ,nother part no charge , no shipping hassle , get it right away . AND ,,in some cases,,labor claim , yep ,sorry for your trouble , submit claim to rep , never turned one down yet . Of course I don"t go crying everytime something fails,,but on some issues where it"s plain defective, and I"m out lot of labor to replace it,I will file a claim .

Yes... it's much cheaper to drive 50 miles to save 50 cents on a part than buy it local... or pay a couriour to deliver it next day or mabey next week depending on where it comes from... All of this while the downtime mounts up.
There's a lot more goes into pricing than what meets the eye. Some things seem ridiculous... but most things simply reflect an opportunity cost to have the part on the shelf when you need it. If ~you~ find yourself in a situation where you can park a machine for a week and wait... good for you. A lot of us can't... so we buy the part as expediently as possible. I don't feel too bad about the local guy making some money off of me either. That's what keeps him in business... and when they buy from me... it keeps me going.

Rod

Rod

We're not talking pennies. I have never heard of a business owner buying things off of me,never happens. I'm not talking about a farm vehicle that's needed on call,just a personal vehicle. If you feel like you wish to pay thru the nose for seeing his glowing face,more power to you. I for one don't really care where I shop,just as long as I can save $$$. A fool and his money are soon parted.I try my best not to be foolish,and squander money away.If I was a BTO I probably wouldn't care as I could write it off on taxes as a business deduction,but some here are not.Lots of time we can ask a freind who is going that direction to pick up the part for us,and we have done the same for them. When we worked for our local farmer, it was not unexpected for him to drive 3-400 miles for a part for his combine rather than getting bled to death at the local dealer.Still back to work the next day,and money saved,his money earned in crop harvest.To each their own,but "SUCKER" was not tatooed on my fore-head.JMO&ISWI
LOU

Forgot to mention, the engine doesn't need the solenoid to run, just to stop, and there is a mechanical shutoff that can be used easily enough. Too, the oil supply to the solenoid, on my engine, is external so I plan to find a off the shelf valve to put in line and easily eleminate the whole $400 setup.

Dodge 5.9 cummins diesel oil pressure sensor,..Dodge dealer $365, nappa $ 325,...Cummins dealer $98.

You go figure :roll:

If you want greed try buying Belarus tractor parts in Canada !
I buy 95% of customer parts from the states. up here half the parts would be $2500.
From the states I can buy all the parts/ maybe do more work that's needed with parts too, and probably set it back in the guys yard for $2500 parts and time included. some stuff can be cheaper in the states, it works both ways I find. Tried fixin my ford super duty truck on U.S parts, Canadian came in cheaper with my trade discounts. only parts that had no jobber in Canada came from the states.
Regards Robert

A guy i used to work for , in the heating and a/c business marked his parts up 3.5 times. If a fan motor cost him 100.00, he would add PA sales tax at 6% = 106.00. Multiply by 3.5 and that motor just cost the customer 371.00

(quoted from post at 19:52:50 08/27/13) Rod

We're not talking pennies. I have never heard of a business owner buying things off of me,never happens. I'm not talking about a farm vehicle that's needed on call,just a personal vehicle. If you feel like you wish to pay thru the nose for seeing his glowing face,more power to you. I for one don't really care where I shop,just as long as I can save $$$. A fool and his money are soon parted.I try my best not to be foolish,and squander money away.If I was a BTO I probably wouldn't care as I could write it off on taxes as a business deduction,but some here are not.Lots of time we can ask a freind who is going that direction to pick up the part for us,and we have done the same for them. When we worked for our local farmer, it was not unexpected for him to drive 3-400 miles for a part for his combine rather than getting bled to death at the local dealer.Still back to work the next day,and money saved,his money earned in crop harvest.To each their own,but "SUCKER" was not tatooed on my fore-head.JMO&ISWI
LOU

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Lou, I think it's all a bit more complex than that. As a small businessman myself I've done my best to keep prices as low as possible and still not lose my shirt. Take a starter rope on a chain saw, something I repair lots of. I buy in bulk to get good quality rope at a decent price and I have to buy 3 sizes to meet my needs. Sometimes I go through several feet in a day, other times I won't touch a roll for a month or 2, but it still has to be there ready to roll and that money is tied up. Do I charge the first few people enough to cover the total cost or spread it out over time? If I spread it out, how much is it costing ME as compared to the customer? I can't stay in business, such as it is, if I lose money. Charging the bare minimum is fine, except I can't grow at all if I don't make some profit. Same with GM and the dealer or parts store. In general terms the longer it sits on the shelf, the more it's costing them. Who is supposed to eat that cost? Who pays their taxes and overhead? They have to make a healthy profit or they fold.

don;t like it anymore than you do. I can pay $150-180.00 for front hub assys for my oldest girls car or buy them on line for about $50.00 each. Maybe the expensive ones would last longer now, but they haven't in the past. I also avoid sales tax that way. Is it right to do? My wallet says yes.

In the end it's all what you're comfortable with . You spent a lot more than the difference discussed here on your dog and now you say you buy pet health insurance. To me, that's foolish, but if that's where you want to spend your money it's none of my business. But you need to step back and look at the big picture. You and I both like guns, other see them as a complete waste of money. I cast and reload which the vast majority of shooters would never consider doing. Who's "right"?

Best of luck with the new pooch, and I hope you get your lights figured out.

Profit is not a dirty word ! Perfect example Bret . I dread inventory time. And then looking at all the non moving numbers.

Profit, when within reason , is not a dirty word. The problem in some areas (remote and Canada) is that the dealers and jobbers seem to think they can charge what ever they want, because they seem to think they have us by the ba!!s. Why should I pay $50 for a part that they payed $10-15 for? Of course you don"t have a problem with parts prices. You make money off them and for your own vehicles, get a much better price than everyone else. 200-250% markup would be reasonable in most cases. Pay $10 for a part and sell it for $25. I don"t see anything wrong with those prices. It"s the 300-500% markup that gets my blood boiling. What pi$$es me off at a whole other level is seeing Car Quest charge $399 for a part in Port Huron, and charging 735 in Sarnia. Those are real prices, that I"ve actually priced out. Keep in mind that our coporate tax is 16.5% vs 35% in the USA, and at the time of those prices, the USD and CAD were at parity and had been for quite some time. In my case, there is simply no excuse for the non-stop r@pe that happens in this great country of mine. I love this place, but dammit.

The reason that parts prices vary from one side of the border to the other is that they don't price in real time exchange rates and never did. I've seen NewHolland be different by as much as 20% below par when the dollar was 5% over par.... When the dollar slides down they're quite happy to make that change quickly tho.

As far as the 300-500% markup... I'd love to know where that is. 30-40% would be big markup around here. Most is lower.

Rod

I may be mixing terms up a bit. In my mind 100% markup is the price that the retailer paid for the item. 200% is doubling the price. 500% is turing $10 into $50. I know that poor markup at my local Car Quest is paying $22.50 for a part from a non-preferred supplier and selling it for $40. Ideal for them would be paying $15-20 and selling it for the same $40. This is the cheapest place in the area(1100km2) Other places were as much as $56.00
They're quick to change it one way, but not the other? You know this and you have no problem with it. That right there is spelled G-R-E-E-D.
I know Kubota prices are a bit better. I've gotten some parts priced just under and over Messick's prices when the dollar was hovering around parity.

Thank goodness farmers don't hold out for the highest prices which would make poor people starve.

(quoted from post at 07:43:58 08/28/13) Profit, when within reason , is not a dirty word. The problem in some areas (remote and Canada) is that the dealers and jobbers seem to think they can charge what ever they want, because they seem to think they have us by the ba!!s. Why should I pay $50 for a part that they payed $10-15 for? Of course you don"t have a problem with parts prices. You make money off them and for your own vehicles, get a much better price than everyone else. 200-250% markup would be reasonable in most cases. Pay $10 for a part and sell it for $25. I don"t see anything wrong with those prices. It"s the 300-500% markup that gets my blood boiling. What pi$$es me off at a whole other level is seeing Car Quest charge $399 for a part in Port Huron, and charging 735 in Sarnia. Those are real prices, that I"ve actually priced out. Keep in mind that our coporate tax is 16.5% vs 35% in the USA, and at the time of those prices, the USD and CAD were at parity and had been for quite some time. In my case, there is simply no excuse for the non-stop r@pe that happens in this great country of mine. I love this place, but dammit.

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Just wondering, is any of the difference import duties and tariffs? I know you GST/PST/etc. are ridiculous up there. That adds to it. Of course it works the other way too- Canadian lumber is more expensive down here and some folks pay a premium for your beer. Then there's Tim Hortons..............

Not to enrage anyone. But...... $4.00 per small square bale hay is to cheap to sell, and to expensive to buy. The greedy b*st*rd that over charges is the same cheap b*st*rd that always wants to pay wholesale with free shipping and no taxes.

IMHO

LOU,
Regarding the discussion on parts pricing, this is America and we're free to spend our money as we see fit. I shop both online and locally, checking prices on most purchases. What's interesting is that several times I've been quoted a high price on a GM part from my local dealer, gotten online and ordered it from a dealer in another state at a substantially lower price even with s/h :?

I wouldn't do this on a $10 part, but when you're talking hundreds, well,,,,, it's MY money we're talking about.

As for your GM issue, I had the same thing happen to my 2001 Pontiac Grand Prix. Lights would go out at night (very unnerving when you're driving 55 on a dark 2-lane road), brights would work as well as the DRL. I could get them to come back on by cycling the tilt wheel up and down. Problem was a busted wire at the connector on the turn signal stalk. The harness flexed every time the Tilt was used on the column.

Even though the harness [u:6db3c10efc]connector [/u:6db3c10efc]was the problem, I couldn't get it off of the stalk. Went to an electric shop and the guy pulled some discarded ones out of a barrel (he chuckled and said he replaced a lot of those on GM cars). Showed me that the connector was not removable. (Whoever heard of THAT?) Replacement stalk was over $100. I ended up soldering in a pigtail wire to the connector and spliced it into the harness. Cost? My time.

Another problem I had on that Grand Prix: couldn't get the key out of the ignition. Common problem with the Trans Interlock solenoid on GM cars. However, mine turned out to be a broken wire on the switch that sensed the floor shifter being in Park. It was buried in the console right under where the carpeting opening for the shifter ended. You could see the insulation and wire were cut and someone put a piece of electrical tape around it (not even a good job of taping it). Since I bought that car brand new, the only place that could have happened was at the factory. Maybe using a blade to trim the carpet?

So much for GM Quality (both design AND manufacturing)

Auto parts NOT made in Canada, Mexico, or USA are taxed at 8%. If made within NA there is no duty. GST/PST (now combined to make HST) is always paid by the end user (consumer), so it"s not a factor in the price charged by the jobber/dealer. I know that some things are more expensive down there. Wasn"t aware that lumber cost more, or that Canadian beer was available down there. Only thing I knew for sure is that bottled water is more expensive down there.

It bothers me how NH controls their pricing regarding exchange rates... but they are in business to make money.
As far as markup on goods... I know for a fact that there is no 500% or 200% or even 100% around here. Had a discussion with the a local parts retailer about that not too long ago and the number was more like 40% gross over cost of goods and take their costs from that 40%. At the end of the day there wasn't much left... Lets just say I know that to be fact; never mind how I know.

I have no doubt that there is probably more margin built into pricing at the manufacturer's end on distribution on some items... but very little margin on other items. Pricing is a funny beast when you get right down to it. Many factors other than cost play into the structure...

Rod

The lumber is more expensive because of the tariff that your illustrious government applies to the product in violation of NAFTA...

Rod

(quoted from post at 13:36:09 08/29/13) The lumber is more expensive because of the tariff that your illustrious government applies to the product in violation of NAFTA...

Rod

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IIRC that came about because the Canucks were "under pricing" their US competition....such as it is. Figures, they about shut down logging here in NY where a lot of lumber used to be made, then they tax the crap out of what IS available.

I think we need to look further upstream for the culprits!

I know I'd be glad to take more money for the stud wood we sell.. Prices here are just above pathetic and have been for 4-5 years.

Rod