Fixed Pricing

[Schtauffer]

Re: Fixed Pricing

Put it this way I get 10-20% off of Jobber when I buy parts, like with my MSD coils on my '99 Camaro they retail at over $800 I got them for $450 and I know they still made money. Put it this way there's about a 100% markup on most stuff, unless it is a high dollar item then the mark up is usually about 50%.

It is perceived value. If the industry accepted value for something is $xx, the customer will perceive the value as $xx, fork the money over, and tell his or her friends how great it works. Mentally, the customer has already decided that it must work because it was so expensive. Admitting or deciding that the gadget (whatever it is) does not work as well or is not worth as much as the cost indicates is a personal failure, therefore few people refuse to buy stuff because its too expensive. The more expensive something is, the more desirable it is. Paying too much for something is a personal failure, and admitting failure is admitting weakness. People do not like to admit weakness.

Furthermore, if something is marked down, people really feel like they got a good deal, even if the "sale" or wholesale price is still higher than actual value.

That's business.

[Brad54]

Re: Fixed Pricing

Put it this way I get 10-20% off of Jobber when I buy parts, like with my MSD coils on my '99 Camaro they retail at over $800 I got them for $450 and I know they still made money. Put it this way there's about a 100% markup on most stuff, unless it is a high dollar item then the mark up is usually about 50%.

MSD Blaster Coils, LS1/LS6; $645 at Summit.
I worked at YearOne for three years, and while they're about the highest prices in the market, their average margin is several points shy of 50-percent, (I won't give the specific number) . Most of their competitors are somewhere south of that. I mean, don't let anyone try to convince you your numbers are fantasy--if you want to believe that the entire aftermarket industry is in collusion, trying to shaft their customers with 100-percent mark up on everything, go right ahead.

Meanwhile, back on Earth...

-Brad

[BOWTIE6872]

Re: Fixed Pricing

Put it this way I get 10-20% off of Jobber when I buy parts, like with my MSD coils on my '99 Camaro they retail at over $800 I got them for $450 and I know they still made money. Put it this way there's about a 100% markup on most stuff, unless it is a high dollar item then the mark up is usually about 50%.

MSD Blaster Coils, LS1/LS6; $645 at Summit.
I worked at YearOne for three years, and while they're about the highest prices in the market, their average margin is several points shy of 50-percent, (I won't give the specific number) . Most of their competitors are somewhere south of that. I mean, don't let anyone try to convince you your numbers are fantasy--if you want to believe that the entire aftermarket industry is in collusion, trying to shaft their customers with 100-percent mark up on everything, go right ahead.

Meanwhile, back on Earth...

-Brad

'70 velle 1/4 panels year one was(I bought them 5 years ago)
75% more than the cost, as we got them from where my dad works.. as they were a goodmark dealer..
under 50 % uh..

[Brad54]

Re: Fixed Pricing

Put it this way I get 10-20% off of Jobber when I buy parts, like with my MSD coils on my '99 Camaro they retail at over $800 I got them for $450 and I know they still made money. Put it this way there's about a 100% markup on most stuff, unless it is a high dollar item then the mark up is usually about 50%.

MSD Blaster Coils, LS1/LS6; $645 at Summit.
I worked at YearOne for three years, and while they're about the highest prices in the market, their average margin is several points shy of 50-percent, (I won't give the specific number) . Most of their competitors are somewhere south of that. I mean, don't let anyone try to convince you your numbers are fantasy--if you want to believe that the entire aftermarket industry is in collusion, trying to shaft their customers with 100-percent mark up on everything, go right ahead.

Meanwhile, back on Earth...

-Brad

'70 velle 1/4 panels year one was(I bought them 5 years ago)
75% more than the cost, as we got them from where my dad works.. as they were a goodmark dealer..
under 50 % uh..

On AVERAGE. Yeah, a lot of their stuff is really expensive--no argument. And it's hurting them. My point was, that at one of the most expensive places, there isn't "about a 100% mark up on most stuff, unless it's a high dollar item then the mark up is usually about 50%" as TC was asserting.
Interestingly, I could buy stuff through our vendors for my '62 Suburban and get YO's cost plus 5% as an employee. There were several things I bought elsewhere cheaper than the YearOne cost.
And for the record, I am not the YO defender or apologist. They have a lot of really good stuff, especially if you're a Mopar guy, and they're really proud of it. But usually not 100% proud of it.

-Brad

[BOWTIE6872]

Re: Fixed Pricing

Put it this way I get 10-20% off of Jobber when I buy parts, like with my MSD coils on my '99 Camaro they retail at over $800 I got them for $450 and I know they still made money. Put it this way there's about a 100% markup on most stuff, unless it is a high dollar item then the mark up is usually about 50%.

MSD Blaster Coils, LS1/LS6; $645 at Summit.
I worked at YearOne for three years, and while they're about the highest prices in the market, their average margin is several points shy of 50-percent, (I won't give the specific number) . Most of their competitors are somewhere south of that. I mean, don't let anyone try to convince you your numbers are fantasy--if you want to believe that the entire aftermarket industry is in collusion, trying to shaft their customers with 100-percent mark up on everything, go right ahead.

Meanwhile, back on Earth...

-Brad

'70 velle 1/4 panels year one was(I bought them 5 years ago)
75% more than the cost, as we got them from where my dad works.. as they were a goodmark dealer..
under 50 % uh..

On AVERAGE. Yeah, a lot of their stuff is really expensive--no argument. And it's hurting them. My point was, that at one of the most expensive places, there isn't "about a 100% mark up on most stuff, unless it's a high dollar item then the mark up is usually about 50%" as TC was asserting.
Interestingly, I could buy stuff through our vendors for my '62 Suburban and get YO's cost plus 5% as an employee. There were several things I bought elsewhere cheaper than the YearOne cost.
And for the record, I am not the YO defender or apologist. They have a lot of really good stuff, especially if you're a Mopar guy, and they're really proud of it. But usually not 100% proud of it.

-Brad

year ones not the cheapest.. but the no questions asked return policy.. is worth it..
if your not sure on something...
or have a habbit of selling project.. if a better one comes along ;D
but the quarters.. were not gonna be going back...
as they where the last of the g.m. tooling ones..
tho.. I think they all are the same .and g.m. lic. isn't there anymore.. so they don't list them like that anymore

[TC]

Re: Fixed Pricing

Put it this way I get 10-20% off of Jobber when I buy parts, like with my MSD coils on my '99 Camaro they retail at over $800 I got them for $450 and I know they still made money. Put it this way there's about a 100% markup on most stuff, unless it is a high dollar item then the mark up is usually about 50%.

MSD Blaster Coils, LS1/LS6; $645 at Summit.
I worked at YearOne for three years, and while they're about the highest prices in the market, their average margin is several points shy of 50-percent, (I won't give the specific number) . Most of their competitors are somewhere south of that. I mean, don't let anyone try to convince you your numbers are fantasy--if you want to believe that the entire aftermarket industry is in collusion, trying to shaft their customers with 100-percent mark up on everything, go right ahead.

Meanwhile, back on Earth...

-Brad

On the MSD coils, they must have dropped the price, but when they first came out they were about $800 for the set.

Also just so you know most Automotive repair shops work on a 2.2 markup. Meaning they take the price of the part and times it by 2.2, which is over a 100% markup. This is pretty much a standard in the business.

As for Hot Rod parts it really depends on the part. Also some of the markups aren't as high because most stuff is priced at Jobber and not at Retail.

[Brad54]

Re: Fixed Pricing

On the MSD coils, they must have dropped the price, but when they first came out they were about $800 for the set.

Also just so you know most Automotive repair shops work on a 2.2 markup. Meaning they take the price of the part and times it by 2.2, which is over a 100% markup. This is pretty much a standard in the business.

As for Hot Rod parts it really depends on the part. Also some of the markups aren't as high because most stuff is priced at Jobber and not at Retail.

Well now you've totally changed the whole premise of the argument. Now you're talking about automotive repair shops diagnosing a problem, and ordering and installing the part for the customer. While the car is on their rack, waiting for the part, the rack isn't making money, etc. etc. etc.
Totally different set of parameters. Totally different business model.
Somewhat like the analogy of going to the grocery store and buying the food to cook it yourself, versus going to a restaurant and having someone else produce it for you. One way you can buy a complete chicken for $4, the other way, you get a breast of chicken on a bed of rice with a side of something green for $12.50. (I stress "Somewhat like.")
There's no comparison to buying parts at a repair shop, versus buying aftermarket performance parts for your hot rod.

And besides... what would a Corvette sway bar and brake set cost from GM, versus an aftermarket company such as Hotchkis, Baer or SSBC? Again, apples to oranges to limes.

-Brad

[SpiderGearsMan]

Re: Fixed Pricing

we charge service customers 50 percent over list
makes up for the fact that parts depart without a wholesale dept is a huge money loser

[BOWTIE6872]

Re: Fixed Pricing

we charge service customers 50 percent over list
makes up for the fact that parts depart without a wholesale dept is a huge money loser

103 buck (my cost) for g.m. rotors for an hhr..
money loser.???????????

[SpiderGearsMan]

Re: Fixed Pricing

they don't move enough parts -costs money to stock parts

[MOPARS RULE]

Re: Fixed Pricing

There sure is a lot of generalization going on here, there's a price list and it starts with W.D. then Jobber then some bogus "Racer's Net" and an even more bogus "List" price. The big boys buy way back from W.D. and they get terms, free shipping.

Some things never change, purchasing power means more room to lower prices. It's a good thing for the consumer.

[nosnerd]

Re: Fixed Pricing



Put it this way I get 10-20% off of Jobber when I buy parts, like with my MSD coils on my '99 Camaro they retail at over $800 I got them for $450 and I know they still made money. Put it this way there's about a 100% markup on most stuff, unless it is a high dollar item then the mark up is usually about 50%.
[/quote]

MSD Blaster Coils, LS1/LS6; $645 at Summit.

Meanwhile, back on Earth...

-Brad,i am loving this ...




[/quote]

On the MSD coils, they must have dropped the price, but when they first came out they were about $800 for the set.==(that was retail....new part///supply and demand////

and the answer to his question is below

*********As for Hot Rod parts it really depends on the part. Also some of the markups aren't as high because most stuff is priced at Jobber and not at Retail. *************
[/quote]


back in the day...not too long ago..there was 'brown sheet' (WD pricing)blue sheet (shop owner) yellow( now-fictious list) and what MOPE said,RACER NET..which is J+15%

now its J (blue)

below J :bronze.silver,gold,and Platinum...NOT much spread between them...

if you paid $450 for coils that go for $645,(MVP/MAP) at summit...count your blessings..if you paid 20 of jobber...somebody is working for FREE...

if you can get 2.2 + on parts...tell me which town i need to move to.....

[TC]

Re: Fixed Pricing

[quote]if you can get 2.2 + on parts...tell me which town i need to move to.....[quote]

Phoenix, AZ, I hear it's a booming town. ;)





And again it kind of depends on the part, little cheap part it's 2.2+, engine or trans or real expensive part it's more like 1.8.

[nosnerd]

Re: Fixed Pricing

thats REAL good..... :o

[mlcraven]

Re: Fixed Pricing

So, all in all, it tells me that wherever/whenever it's possible to do so, I'll avoid buying new parts from a retailer. AND, if/when there is no other option, I'll wait until I can get a loss leader or buy the cheapo 'made in China' part (assuming they're not already the same item) from the big mail order house.

At the end of the day we are the bedrock of the hobby. And folks who profess to be irritated at the high cost of parts can hardly be righteously indignant if they're prepared to pay the going rate for the latest and greatest speed widget -- widgets, incidentally, that fill the pages of car magazines and to whose manufacturers those same magazines are beholden for ad revenue.

A tidy -- or nasty -- little circle, depending on your perspective and degree of obsession.