List prices on parts

[adrianfig]

Just throwing an interesting topic that I think would make a good ETCG1 video. Ever since I started working at an auto parts store I have been learning about “list” prices. The “list price” for parts vs. the actual price is paid for the parts. Shops will call me for parts, make me cut down the price on the parts to match other stores, and then still sell the part at “list prices.” Just wanted to know your opinion and everyones of course, and if you sell the parts for more than you pay. Do you think its wrong that shops buy parts and then sell them for 2 almost 2.5 times the price they paid?

Topic

[asetoftools]

You have described every retail operation in existence. Is it wrong? Is capitalism wrong? Yes, but its the best we have at the moment.

You could try an online site like rock auto, depending on the part…

Parts stores often give you a discount if you are a graduate from a local technical school, or work for the city. So you can social engineer some discounts as well.

[Matt]

Not that I’ve ever worked as an auto tech, but as a computer tech, I do the same sort of thing as shops do. To me, a shop charging a markup for parts that they’ve bought from an auto parts store makes sense. The shop has to pay someone to get on the phone and track down the part, pick up the part if the parts shop doesn’t deliver, and then needs to factor in the costs of replacing the part if the original part is faulty. The part may have a warranty and be replaced by the supplier, but the labour costs are still there.

Plenty of shops are quite happy to install your own parts with the caveat that if they fail, you’re own your own.

[EricTheCarGuy]

You know, this would be a good topic. There is I believe, a good reason for it.

Thanks for the suggestion.

[jason]

well I do add on to my parts. however I do not charge list. but could see were someone would. I look at it this way if I put my money in the bank I want to c a return on it or if I bought a car and wanted to sell it I would want my money to make me money. furthermore I not only have to spend time looking for the parts I also have to sometimes go and pick this part up so if I am not under the hood where am I making money.

[asetoftools]

This is why I sometimes purchase parts myself and bring them to a mechanic if I am not doing the work. I always figure they charge a greater price, then I can get with my discounts. Or ordering from USA. Its polite, and may make the job go much faster, as long as you get the exact right parts!

On computer repair however, I absolutely always charge the customer the exact price that I pay for parts (shipping included of course). I don’t really get bulk discounts or percentage discounts with buying desktop hardware. I charge enough for my services as flat rate that its easy to not mark up parts acquired for a specific job. If I was retail and had to keep stock that depreciated, that would be a different story. Most auto mechanic shops I believe don’t keep many spare parts and have someone drive them over parts that they need. If the person can simply go look up the part on a website and see what you have paid for it, then there it looks scammy if you charge 100 bucks for a 70 dollar part “i can get that at future shop for $80!”. The same is occurring with auto parts, depending on the retailers business model.

Some amount of markup is justified, the way the auto parts store treats the clueless person off the street depends on the store I think. Some like canadian tire, compete on price, make money on volume, and have almost all their parts listed online. However they do not have as big a variety of options for brands. A popular BC brand store is lordco, which has ridiculous 30% discount that they give to companies and organizations. There may even be higher discounts I am not aware of, but it is all account based. They say “do you have an account?” before getting pricing, so you know you are getting somewhat shafted just from that statement. Luckily I have one, but even at -30% with lordco, canadian tire often beats the price sku for sku. Lordco does not list its prices online without a service rep relationship, and I view that as part of their business model.

I use Autozone in the USA as a good indicator of the average american price for something (usually 1/3rd the price CAD for sensors, half for most other stuff). Rock auto ships to canada and has really the best prices I have seen anywhere and most variety. They also provide online pictures of most parts. Autozone does not ship to canada, so it means a border crossing and possible customs payment.

[adrianfig]

At least at my situation working at orielly auto parts its been we deliver the parts to the customer. What just gets to me is when I see the receipts for what the end customer at the shop is paying for the part and sometimes it is three even four times. I understand that working at a big shop there is a lot of expenses but to pretend like you paid 150 dollars for that starter when I sold it to you for 60 is kind of too much. (just a random example from experience) hope to hear about this in a new ETCG1 video banana:

[Author]

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