Local Tuner Mad Over Forum Prices & Calls Supplier
 

Get this guys... (without mentioning names... yet)

My husband recently ordered some parts online from one of our favored forum sponsors / vendors and got a reasonable price. (Thank You to that mid-west vendor!!) Well, one of my local Vette tuners / shops called the suppliers and complained about "discounted" forum prices and how it is unfair since he marks up the price on parts to make additional profit. Some nerve, huh?! :eek:

There are two local Vette shops that I/we have dealt with and when I found out who it is, I'll certainly have a word with them and let local Vette drivers know about their "mark up" tactic. We pay enough for the "Covette tax" without having a local shop tax more for their personal gain.

Brick and Mortar shops have more overhead and typically sell products at higher prices. They're also more convenient if you need a part right away.

Has nothing to do with Corvettes...

Same as buying cigars online, much cheaper than brick and mortar.!!!

Yea and it's not against the law or unethical to mark up items to make a profit!The forum vendors have a whole bunch of people in relatively confined area to sell to which makes it easier for them and less overhead.

Greed does not/ won't be in business for long :(

How is it greed to simply want to make a profit?Half of us would not own Corvettes,houses or any damn thing else if we did not make a profit at what we do!

That's how it works, don't like ones prices move on to where it works for you.

:iagree:
Not to start a war, because you all know there is truth to this, online sellers put local businesses out of business. Amazon.com for example wants to be the only place you can buy goods. Research it.
It's the new version of buying appliances and electronics from Best Buy big box store instead of your neighborhood dealer. Woops, sorry, there are no more neighborhood dealers.
I do buy from forum vendors and other online sellers, but if someone local can come close I'll give them the business to help them stay in business. They provide the local jobs, and usually more than just the sale of parts.:flag:

Beware of snake-oil salespeople who thrive on taking advantage of our least knowlegeable breathern, those who have their cars "tuned".

Yes, this true. As do most companies though, ie. Walmart hopes you only shop there by selling every type of product possible.

Even places like Amazon are local to someone. And even in this case, it's someone in the United States...

Guys, to clarify... making a buck is one thing and I fully understand that. But for a shop to call a supplier of said parts and complain that other retailers are selling the exact same parts for less, when in fact, that same shop owner inflates the prices to begin with is nuts. To bad to the shop owner and tisk tisk on him for jacking the price beyond what the parts are commonly sold for.

If it is conveinent for the customer to pay $500 to the shop for parts that otherwise cost only $300 online, that's different and part of business between the shop owner and the customer. For the shop owner to complain to the parts supplier about other retailers prices not being overly inflated as his... well, if you feel that is appropriate, tisk tisk on you. I for one am a smarter shopper.

I've reposted this with the salient part in bold because the first replies to the OP's post missed the crux of the issue.

Stop defending the shop making a profit and instead, try to defend the disreputable actions of the shop.

much of the world as we know it is setup this way. manufacturer makes things and sells to distributor, distributor then sells to local retailer, who buys product, marks it up and resells. Each of those in the food chain have different cost structure, with retailer typically having the highest, due to bricks and mortar, inventory, taxes. Any owner of a business needs ot know what his costs are, and price goods high enough to cover costs and fair profit.

Middleman then sells online competing with retailer, but forces retailer to sell x amount of product to keep line. Retailer should have gotten some form of price protection in place with arrangement. not doing so, then Crying about it after the fact is just sour apples.

:thumbs: :iagree: That is exactly my point.

the good thing about living in America is anyone can start a business and sell products for whatever price they want. we all have the choice to buy from them or anyone we want and can prioritize our needs by price, convenience, buying local, paying/not paying sales tax, whatever. don't hate because some have a little less tact than other buy calling vendors to try to even out prices. you would be putting yourself in the same boat by telling other Vette owners not to use this shops services...
Happy Thanksgiving!

I agree, and I should have said 'can' or 'sometimes' put local businesses out of business.
The problem I have with the greed of large companies these days, is that it is no longer good enough to have a successful business, you must dominate, drive competitors out of business. It's like a drug, the more you have the more you need and are never satisfied.

As a business man, the owner of this shop should know why someone else may be able to sell a part cheaper than him. Other than previously stated overhead costs, you have volume. He may sell two to someone else's thousand. I know I don't have to get into the details of that.
On regular day to day parts, there is also the pricing game at the auto parts store. They may discount from retail for walk in customers, but discount even more to a shop. The shop can then charge retail for the part when they install it, which helps keep the labor rate at a certain level. If you don't make money on the parts, you need to raise the labor to maintain the same income level.

Also, you say "tisk tisk on him for jacking the price beyond what the parts are commonly sold for". Keep in mind, you are not comparing him to other retailers up and down the street, you are comparing him to the internet. That's not fair.

I believe we all know that the cost of running an internet business is usually less than the cost of running a store front business. Buying an item from an internet business is usually less expensive because of this, although you do incur shipping costs. With a store front business, you can go there and actually see what you are buying and receive advice to help you select the right item. There are benefits to using both types of businesses.

What I consider an important part of owning a business is knowing your competition and what they are doing so you can adjust business to compete. This shop owner apparently wasn't doing this and what amazes me is that now he is upset with the internet business? The shop owner needs to adjust or he will be out-of-business.

It's like anything. It's up to the consumer to do their own research to find the lowest prices before purchase. Every business marks up to make money.........even our "preferred" vendors. Otherwise, they'd be out of business.
The vendors I don't like are the ones who flat out lie to your face. Again. And again. And again. Not naming any names..........but you know who you are. :mad:

It is possible that the retailer had an agreement with the supplier that the part he was carrying would not be offered to others at a discounted price, that is the way some suppliers get local retailer to carry their products.

It blows me away that the OP complains about the shop guy making a profit.

There is a thing in marketing called "perceived value" There are those who will sell something at or slightly above what it cost them to get sales.

Whoever has the "lowest price" sets the perceived value and anyone else is a ripoff thief. That is the way the public thinks.

As I am in the aftermarket business I had a conversation with the REP of a well known company. He told me about this. He stated that one of the large mail order companies was buying at the lowest level and advertising the product very cheap in lots of publications, thus setting the perceived value.

What the supplier did was to back order all popular part numbers on this seller until they quit screwing things up.

Here is what I think the OP should get. His parts from the tuner for the same as the online shop. Then an added "facilities charge" which would include his share of the rent, salaries, equipment usage, workman's comp, lights and power, water, shop towel service, insurance, etc.

Then he could not complain about getting ripped on the actual selling price.

There was a company that advertised on this site and had prices so low that they were actually selling at their cost or barley above. Then they added a shipping and handling charge that was huge. All their profit was in that charge.

Thing was, if you had to return something, you were only refunded the price of the item, they still made their profit.