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Profit Margin

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Allan In NE

12-05-2006 06:27:28

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Can't believe how these parts houses rape a guy.

Stopped in at the loacal Car Quest yesterday and was gonna pick up a high pressure cutoff switch and an expansion valve. They wanted $75 apiece, $150 for the two items!

Supplier in Iowa charges me $24 for the switch and $19 for the valve. Better stuff too.

I did buy a roll of dum-dum. $22! Geeze!

Allan

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JoeBob/in

12-05-2006 16:34:36

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Re: Profit Margin in reply to Allan In NE, 12-05-2006 06:27:28

Dang! Wish I would've known you were in the marked for those two, I have half a dozen lying around my cousin collected from Monaco after his boss told him he owned him! Unfortunately at the time cousin was in the Marines and cousin not so kindly informed boss that he didn't own him but for the time being the United States Marines did and only they could tell him he had to stay and work extra hours and Saturdays. I think he collected almost enough parts to assemble a small RV if we had the chassis!

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Matt Smith

12-05-2006 14:28:44

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Re: Profit Margin in reply to Allan In NE, 12-05-2006 06:27:28

Sometimes I wonder how parts people can look you in the eye and tell you a price without feelin guilty.

I priced a terminal block for my Ford 600 at the NH dealership. They wanted $20 for a piece of plastic with two brass bolt molded into it.

I went home and made one for less than $1.

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12-05-2006 11:45:59

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Re: Profit Margin in reply to Allan In NE, 12-05-2006 06:27:28

Could be the differance between a peice that is a real good quality part and a cheap chinese made part. You say they are better, but are they really better or just appear to be?

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Dave from MN

12-05-2006 08:49:15

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Re: Profit Margin in reply to Allan In NE, 12-05-2006 06:27:28

Seems like that is the same every where. What does a dairy farmer get for (1) gallon of milk? I paid $1.65/lb in the into the freezer for a very tender locally grown black Angus steer. I even gave the farmer $.10 lb over what he was asking for the live weight( I always buy live). Sold 2 more to freinds for my cost. They say $1.65 for hamburger is cheap not to mention the roast and steaks. I seen T- Bones on sale Sunday at local super market for $8.99/lb. They look real pretty with all the red dye in them but the wont hold a chance against these steers I bought from a very honest farmer. Would be nice if there was a link on this site that people could post their" get a beeter deal here" knowledge!! Please Kim.

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Bob

12-05-2006 08:47:12

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Re: Profit Margin in reply to Allan In NE, 12-05-2006 06:27:28

Not sure exactly what you do, ALLAN, but if you were the least-cost provider in what you do, operating at a minimal profit, would you have the $$$$ to buy the land, buildings, and toys you've been showing us???

Maybe the local Carquest guy has a hobby farm, too!

(Mostly just kidding, but putting another "spin" on profit motives!)

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Allan In NE

12-05-2006 08:59:19

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Re: Profit Margin in reply to Bob, 12-05-2006 08:47:12

Yeah, I know.

He's a heck of a nice guy and smart as a whip. Think he might be into stock car racing on the side, don't really know.

What I do know is that I gotta do business with this fellow over in Iowa and do it knowing that he is still probably gettin' his 30% margin outta me. :>)

And so the world spins,

Allan

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Bob

12-05-2006 09:08:17

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Re: Profit Margin in reply to Allan In NE, 12-05-2006 08:59:19

I hadn't thought of the stock car racing thing.

That DOES seem to explain his prices!

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Midwest redneck

12-05-2006 08:26:44

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Re: Profit Margin in reply to Allan In NE, 12-05-2006 06:27:28

I used to work for an auto parts supplier to the big 3. We made a transmission part that sold to Ford Motor Comp. and we got $5 for the piece. If you bought that same piece in a dealership parts dept it would be $35, Ford parts div. I am sure is making money, yet they lose piles of cash every year. Go figure.

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JDB

12-05-2006 10:16:53

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Re: Profit Margin in reply to Midwest redneck, 12-05-2006 08:26:44

Corporate shell game

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GregCO

12-05-2006 08:00:30

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Re: Profit Margin in reply to Allan In NE, 12-05-2006 06:27:28

I ran into a similar issue last month at the dairy. We needed 60 feet of two inch milk hose and was quoted just short of $400.00 from Hose Warehouse. Called another supplier and got it for less than $200.00. Same darn hose.

Greg

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the tractor vet

12-05-2006 07:52:20

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Re: Profit Margin in reply to Allan In NE, 12-05-2006 06:27:28

Yep, they charge what ever the market can stand plus 10% . That is why i got set up for my parts to buy jobber as it is about 60% less and ya cut out one middel man never could get on the direct buy thing as i did not buy enough . I could get a rebuild kit for less then anybody mark it up 25% and still be up to 35% less then anybody. Just like at the dealership after being a partsmanager and seeing the spread sheetas to what the dealer pays and what you the end user payes . As on some parts there was what was called wholesale comp. and that maybe up to 80% less the dealer cost that the company would kick back to you if you sold that part well most parts houses put that money in there poicket and still charge ya list well i always felt that hey if i could sell that part for 40 percent less then list i still mad out like a bandit and wheni was runing a large parts depot the other parsmanagers always wanted to know how come my over the counter sales were alway so high , because i was sell more parts over the counter to small body shops and back then gas stations and small ma and Pa repair shops plus all the drag racen nuts at a discount and on the dragracen parts there was tons of wholesales comp so if i sold a part for 10% over my cost and then chrysler kicked in say 40% wholesale comp. i realy was maken 10% over the list when all the figuren was done instead of tryen to make 80% over and not sellen the part .

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NO tools

12-05-2006 07:41:59

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Re: Profit Margin in reply to Allan In NE, 12-05-2006 06:27:28

yell!
needed set rod&main bearing for the 1066 back in summer local napa 326.52 case ih 351.00.
got on enternet found "m" for 171.00.and they were cleviete.

Scraped a truck tire 60 mile from home go in to tire store&warehouse 265-75-16 10 ply firestone OH OH!!we got"M" 180.00 The he11 with it!
Next day my local tire man .(i'll get you 4 of them) have"M" in the morning.540.00--4
went to put them on GUESS what they had the tire warehouse name on them????? ?

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fhil

12-05-2006 07:40:13

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Re: Profit Margin in reply to Allan In NE, 12-05-2006 06:27:28

Looks like youre making homemade whiskey for the holidays

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Allan In NE

12-05-2006 07:51:32

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Re: Profit Margin in reply to fhil, 12-05-2006 07:40:13

Yeah,

Is kind of goofy lookin' jasper 'taint it? :>)

The "kicker" was that this local parts house comes out with the box right off the shelf. I open it up and the darned expansion valve doesn't even have the little external equalizer tube.

$75, my south 40! Very politely told him that maybe he had better just keep it. :>)

Allan

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Mike M

12-05-2006 07:00:14

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Re: Profit Margin in reply to Allan In NE, 12-05-2006 06:27:28

Was that list price ? these places have alot of price levels they can charge you at I'm sure they could of cut a better deal.

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R. John Johnson

12-05-2006 06:57:18

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Re: Profit Margin in reply to Allan In NE, 12-05-2006 06:27:28

Allan

Like they say, it always pays to shop around.

John

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