OK one more question,,, Why is it I can go on line and buy from another dealer selling the same parts and with shipping pay less than a local dealer? Yeah I know everybody has to make a buck and I would just as soon spend my money local then send it off some place else. I have been told the OEM sets the price they have to sell for I have a problem with that concept. They might all buy it at the same price but selling it is a different story, and when I told the guy at the counter he mumbled about them setting the price and its not possible for someone to sell it cheaper,,, OK so let it rip boys please explain this basic concept of economics to me
And another question
- Thread starter skeets
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I believe all parts are sold from the warehouse at the same wholesale price from Kubota and everybody puts their mark up on the part. It's ususaly not more then a 10-18% mark up. I've been searching for a volt regulator/rectifier for my Kubota online and everbody came in close on price and just varied by a few dollars. I stopped by my dealer today and picked up the last one they had in stock. It was $86 and change, after $4 dollar tax came to $92 and change and I didnt have to pay to ship it and its in my hand right now.
One of the internet dealers I buy from told me on the phone once that his internet prices are lower than his local prices. He didn't say it, but I assume he uses his local buyers to cover his overhead and then whatever margin he makes on internet sales is all profit. A lot of foreign companies do the same. They cover there overhead with local sales and sell (dump) their excess at lower prices in another country (sometimes the US) to maintain there volume (especially manufacturing volume/utilization) and gain the marginal profits without reducing their local prices.
John in VA
John in VA
Another thought too what 300zx is saying. With internet sales there is no need for a dealer to buy the part, keep it in stock in his parts room and then sell it to you. I'm sure the dealers can get parts from the main warehouses and have them shipped directly to you from there. If the dealer does not have it in stock then they have to wait, place and order for a bunch of parts at the same time and have them all shipped from the big warehouse to them. I guess direct sales from the warehouse to the customer via the dealer is why sometimes the parts are cheap.