Interesting parts pricing strategy
#1
06-29-2018, 05:43 PM
Interesting parts pricing strategy
Recently I need a part - what is not important, I wanted it in a hurry so called my nearest dealer - knowing I'll pay more but that would be OK because of the convenience and speed. It was between 100 and 200 bucks so I could handle it.He didn't have it so I checked it the usual online suspects. As it turned out, I located the part at another dealer just 30 minutes away and opted to pick it up from him.
Now, when I got there, he quoted me nearly 18% more than his internet price. I asked if he would match his "advertised price". He wouldn't but - and this is fascinating - he explained that the have another online site under another name and he would give me that price, which was 3% less than the original online price.
I payed, went home and played mechanic for a bit.
Later on, I got to thinking about it, researched my part and found this:
(I'm using a base price of 100 to keep it simple - all comparisons have been adjusted. )
The RRP. MSRP, List Price or whatever you want to call it was $100.00
The "window price" at the dealership? $117.87
The internet price? $100.00
The secret name shop price i was told not to disclose $98.12
Their internet prices were no bargain but they were selling OEM parts so while I like as big a discount as possible I expect to take it in the shorts a tad anyway. IPD/FCP prices weren't a whole lot below the bottom price either. But the thing is this;
I have never heard of a dealer marking up parts above the full list price before at the counter.
Musings over.
Now, when I got there, he quoted me nearly 18% more than his internet price. I asked if he would match his "advertised price". He wouldn't but - and this is fascinating - he explained that the have another online site under another name and he would give me that price, which was 3% less than the original online price.
I payed, went home and played mechanic for a bit.
Later on, I got to thinking about it, researched my part and found this:
(I'm using a base price of 100 to keep it simple - all comparisons have been adjusted. )
The RRP. MSRP, List Price or whatever you want to call it was $100.00
The "window price" at the dealership? $117.87
The internet price? $100.00
The secret name shop price i was told not to disclose $98.12
Their internet prices were no bargain but they were selling OEM parts so while I like as big a discount as possible I expect to take it in the shorts a tad anyway. IPD/FCP prices weren't a whole lot below the bottom price either. But the thing is this;
I have never heard of a dealer marking up parts above the full list price before at the counter.
Musings over.
#2
07-16-2018, 11:46 AM
Dealers are independent businesses which can chose to follow MSRP or not. Honestly, this is a weird story even considering that fact. I prefer OEM parts whenever possible, but I always buy them online, which is usually a dealership that is broadening their market share buy casting a wider net (inter-net that is). You still get factory parts cheaper.
I don't get why the guy didn't just give you the $100 price and let you go on your way. It seems like the guy may be going against his license agreement with Volvo and selling parts sourced from the local parts house. Whatever it is, I have a feeling there's something fishy going on. Maybe the parts guy has his own little side business even the dealer doesn't know about? Sketchy at best.
I don't get why the guy didn't just give you the $100 price and let you go on your way. It seems like the guy may be going against his license agreement with Volvo and selling parts sourced from the local parts house. Whatever it is, I have a feeling there's something fishy going on. Maybe the parts guy has his own little side business even the dealer doesn't know about? Sketchy at best.
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