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Re: I want to comment on previous string on parts cost.
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Posted by Steve W.....take an accounting class! on December 10, 2002 at 08:31:29 from (66.66.80.36):
In Reply to: I want to comment on previous string on parts cost. posted by DAVE M on December 10, 2002 at 03:48:45:
To me, 20 bucks sounds like a bargain. Let's say this guy sells one or two a year of these, but carries 20 others that they sell once every year or two sitting on the shelf. For him to carry all those parts, he needs to make a profit. And since he has to pay interest on all the stuff he has on the shelf, he has to make it up somehow. If you don't think he's paying interest on that inventory, you are wrong. He could take the cash he paid for all his parts, and put it in the Bond market, and earn simple interest. See? The problem of this inventory model is that the internet suppliers turn over a lot more product, so the inventory cost is less, making it easier for them to sell cheaper. So next time you order that cheaper part over the net, you pushed that dealer one step closer to closing. It's sad, but inevitable. Take Care
Steve
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