Landru

Thanks genius, you earned a F.

punky

Good to see that you have this business thing all figured out. LOL!

meyerweb

Don't forget to factor in shipping charges for online purchases. On relatively inexpensive parts they can eat up all your savings, and more.

As far as overhead costs, it's simple fact that dealers have significantly more overhead expense than online retailers. For many factory parts, the online vendors often don't even have stock. They order from a GM warehouse when they receive your order, and have the parts drop-shipped to you.

punky

I wonder if the guys here who give us enlightenment on business "overhead" would explain how some brick and mortar auto retailers are able to discount their parts, accessories, extended warranties, etc.

Zoomin

In addition to sales managers, there are finance managers, service managers and parts managers - each of whom is responsible for profit from that department. And their pay package is heavily influenced by profitability.

They know most people are ignorant about parts prices and will just write the check.

probono

Just seems to me that despite dealer overhead, for the most part, they do not inventory most parts...just consumables, and that only makes sense. When they need a customer part, they order it, just like one of us might do, from an online source. I saved about $50 ordering splash guards online...hard for me to believe that a $50 profit is reasonable for a part which can be obtained online for about $100. As posted above, most people don't check online before they go to the dealer. Same experience with Lloyd's mats; some charge much more than others.

Ken

b4z

The caddy Buick gmc dealer here in charleston, sc adds 20 % to GMs part prices. I'm not making it up.

probono

Great reason to source elsewhere...

I do a lot of model rc helicopter flying, and there are two local hobby shops. Neither apparently understand that there is an internet world, yet both wonder why their business is plummeting. I have a friend who runs a motorcycle parts business, and his business is great. Why? Because he recognizes that the internet exists...

Seems pretty obvious to me...understand the competition...

Ken

punky

Be absolutely certain that a business who relies on its customers ignorance is destined to fail, likely sooner than later. I've been in business nearly my entire life and can tell you that most consumers are well aware of what they are buying and what constitutes a fair price and value. Some of the posts in this thread are flatly laughable and obviously from guys who have not a clue about retail business.

Zoomin

If that remark was directed at me, I too have been in retail business for years. If you, in your self-proclaimed infinite business acumen can offer a better explanation why 99% of dealerships charge full list or more, then please enlighten us.

punky

99%, really? Where do you find that statistic? You wouldn't have childishly made that up to support your foolish contention would you? Stick to your paper route!

Zoomin

I don't see anyone rushing to support your contention that dealers beat Walmart everyday, champ.

Name some parts that people regularly go to dealers to purchase because they offer lower pricing.

punky

If you had a clue you would know that there are retail dealers who discount their products in this particular arena and receive the lions share of the pie at that point. Wake up Dude, these business owners have the same relative costs and overhead as their competitors, they are just better at it. You would likely be conversant with this concept if you knew anything about retail business. Its no more complicated than that.

Zoomin

No answer for one product that people routinely purchase from dealers as opposed to chain parts stores or Walmart, I see. You're either obtuse or just being argumentative. Either way, you're wrong.

aj98

On my C5, the dealer supplies the oil filter, but I provide the oil.
(Thanks to the Mobile1 rebate a couple months ago...I'm sitting on about 25 quarts, so I'm good to go.)

Anyway....

I used to work at a VW/Audi/BMW/Porche dealership parts department.
Granted, a long time ago...but the parts price book was an interesting thing.

VW parts were cheaper than Audi cheaper than BMW cheaper than Porche.
Even for (interchangable) VW and Audi parts, the Audi parts cost more than the VW part.

Labor rates followed the same order. Lowest for VW, highest for Porche.

I imagine the margins haven't changed much, and are similar across all brands.


The "cost" from the manufacturer was about 50% of the retail price to the customers.

If another (same brand) dealer ordered a part, then the markup was 5%, or an equal value parts trade was worked out.

If a 3rd party repair shop specializing in the brand (there are several in this area) ordered a part, the parts were sold at about 1o% over cost.

If a different brand dealer ordered, parts were marked up about 15%

If a non-specific repair shop (Firestone, Goodyear, etc) order, markup was 20% over cost.

If a parts store (ala NAPA, Advance, etc) ordered, then markup was 25% over cost.

Everyone had a little bit of profit

punky

keep your day job Dude as you will never make a living as business analyst unless you're looking for laughter. Enjoy!

W88fixer

Probably a lot of you are aware of them but perhaps it is still useful to mention that Rockauto has a great selection of parts for a huge list of cars. Don

jedblanks

Lots of experts on experts here. Astounding.

Drive-C7

If you are near a large city there are more than one Chevy dealer. Talk to the Parts Mgr. and ask for Dealer Cost which is not their cost but what other dealers like Goodyear tire pay which is wholesale. Tell the mgr. you do your own work on the car and you are looking for a Chevy dealer to work with on parts. It may or may not be the same dealer where you bought the car. I did this on my Chevy cars years ago and my Honda S2000. It has always worked for me. All they can say is no then go to another dealer. You just need to shop around. I take my C7 to one dealer and get parts from another.

JerryU

Agree, did that all the time when younger and got a "mechanics discount." Last year asked what was the best they could do for the Vette oil filter since no discount store I checked had the Vette filter available. Got 30% off but recently paid even less from the net!
Some years ago when buying a ZZ502 engine for my street rod I brought in an ad from a magazine that showed a discount price (available at the time disassembled, some 30 boxes in a wood crate.) After talking to the manager at the local Chevy dealer they matched the delivered published discount price. The only issue was their small fork lift could not load the crate lengthwise in my S10 pick-up. Had to return home and put my tailgate back-on. Drove home with the engine only 2/3 in the bed up against the wheel wells and the remainder on the tailgate! Would only go ~15 mph for fear of the front wheels coming off the ground if I hit a bump! This is a pic of it being lifted out of the truck with my engine lift!




Local Chevy Dealer Matched Magazine Advertised Price from a Discount House