Re: Dealer cost on new equipment?.

Posted by NC Wayne on September 14, 2004 at 18:19:51 from (205.188.117.10):

In Reply to: Dealer cost on new equipment?. posted by Jonboy on September 14, 2004 at 16:03:01:

Looking at things from the dealerships point of view I have to agree with the other posts concerning the customer knowing in advance how much was paid for the item wholesale. The dealer is gonna have to add on enough to at least cover his overhead and hopefully be able to turn at least a little profit afterward. It seems to me for him to order something special for you he should really be able to do a better price on it than if you bought it off the lot, and in that respect I can see your point of view. Usually special orders are paid for in advance so he has no actual money out of his pocket spent buying the item and letting it set on the yard for several months waiting on a buyer like he would with other "stocked" items. All he has to cover is the salary of the man selling it to you, especially if you cover setup costs, shipping costs, etc. In that case he's sure to turn a at least a little profit just off the setup charges, so to "stick it to you" on the actual implement cost really isn't right in my opinion. The best way to see how fair his price is is to do some comparison shopping. Call arouind to other dealers and see how their prices compare, that is the only "fair" way to do it.
From the buyers point of view I can see your point too about wanting all the information you can get. As a mechanic I spend alot of my customers money buying parts for their equipment. I know of at least one OEM that usually has at least a 150% markup on items and I have seen items marked up nearly 300%. I know this because many of their parts are "off the shelf" items that can usually be bought straight from the mfg. without having to go therough them. In a case like this I know where to go to buy the part alot cheaper than my customer would therefore I can put my markup on the part and still save him a load of cash too. If I'm gonna be the one installing the part the I'm gonna make more profit installing the part than I ever would on the markup, so I always try to cut the customer a deal and lower my normal markup. However if I'm having to buy the part for the customer to put on you can bet I'm gonna raise the markup percentage to at least cover the cost of my time spent ordering and handling the part, plus a little bit, otherwise I'd be working for free.
Just my .02

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