Re: Profit Margin

Posted by the tractor vet on December 05, 2006 at 07:52:20 from (75.19.124.198):

In Reply to: Profit Margin posted by Allan In NE on December 05, 2006 at 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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