Previous Thread
Next Thread
Print Thread
Page 1 of 2 1 2
Markup on parts #3118285
02/02/23 12:42 PM
02/02/23 12:42 PM
Joined: Jan 2004
Posts: 8,230
fredericksburg,va
C
cudaman1969 Offline OP
master
cudaman1969  Offline OP
master
C

Joined: Jan 2004
Posts: 8,230
fredericksburg,va
Looking on line the other day for carrier bearings for the Dana, bearings ran between $22 and $27, race was about the same, on Amazon. I have a buddy who works at a parts store who got the parts at his cost, $14 for bearing and $7 for race. Who’s making money now!

Re: Markup on parts [Re: cudaman1969] #3118299
02/02/23 01:17 PM
02/02/23 01:17 PM
Joined: Dec 2006
Posts: 2,102
Byron, NY
W.I.N. Racing Offline
top fuel
W.I.N. Racing  Offline
top fuel

Joined: Dec 2006
Posts: 2,102
Byron, NY
All the same mfg'r??


'01 P1500, Blown/Inj BAE,/Veney ,Bruno/CS2,Dana 60
'01 Dodge 3500 S Cummins Auto, Fresh air kit, 4" Exhaust,
'05 Dodge Magnum R/T - Too Much to list
'60 Willys CJ5
'01 International LPX - Project,DT466, Allison
'64 Plymouth Valiant, Inj 528 Hemi, 2spd
Re: Markup on parts [Re: W.I.N. Racing] #3118304
02/02/23 01:29 PM
02/02/23 01:29 PM
Joined: Dec 2005
Posts: 11,479
Fulton County, PA
C
CMcAllister Offline
Mr. Helpful
CMcAllister  Offline
Mr. Helpful
C

Joined: Dec 2005
Posts: 11,479
Fulton County, PA
Originally Posted by W.I.N. Racing
All the same mfg'r??


Big difference between good stuff and China junk. Pay half price, get what you pay for.

Amazon will probably get you counterfeit stuff.

Get hooked up with Randy's. Do 10 or 15K a year+ and get a deal.

ATech will save you a few pennies but free freight takes a lot more then $99. Whoopie.

There are no deals on parts anymore. Unless you buy in to the deep deal at the source. Even owning a shop gets you very little off of what Harry the Homeowner gets walking in off the street.

It ain't 1969 anymore.

Last edited by CMcAllister; 02/02/23 01:40 PM.

If the results don't match the theory, change the theory.
Re: Markup on parts [Re: CMcAllister] #3118320
02/02/23 02:00 PM
02/02/23 02:00 PM
Joined: Sep 2003
Posts: 19,301
north of coder
moparx Online content
"Butt Crack Bob"
moparx  Online Content
"Butt Crack Bob"

Joined: Sep 2003
Posts: 19,301
north of coder
way back in 1968, i got to know the owner of the local parts store.
he told me there was a 100% mark-up at every step from the manufacturer to the store.
i don't know if that was true then, or if it still applies today, but it seems to be plausible ? shruggy
beer

Re: Markup on parts [Re: moparx] #3118330
02/02/23 02:27 PM
02/02/23 02:27 PM
Joined: May 2012
Posts: 1,817
South Bend
John Brown Offline
top fuel
John Brown  Offline
top fuel

Joined: May 2012
Posts: 1,817
South Bend
143% increase in pricing is much more common in the autoparts business than the 200% increase is.

So, a part that cost a seller $10.00 would be marked up to $14.30, not $20.00.

Take this from a 30+ year parts guy / sales rep.


July 19th should be "Drive Like Rockford Day". R.I.P. Jimmie.
Re: Markup on parts [Re: John Brown] #3118341
02/02/23 03:24 PM
02/02/23 03:24 PM
Joined: Mar 2005
Posts: 2,644
North Carolina
sasquatch Offline
master
sasquatch  Offline
master

Joined: Mar 2005
Posts: 2,644
North Carolina
That may be true for retail car parts but not speed parts. 20 percent is the standard WD deal from most companies and some only give you 10% and you pay freight and retail costs out of that. That is why the hardcore race parts are very hard to get any kind of "deal" on. If you can run a brick and mortar speed shop on 20% margins you are smarter than all of the guys that have gone out of business trying in the last 30 years....Todd

Re: Markup on parts [Re: CMcAllister] #3118357
02/02/23 03:57 PM
02/02/23 03:57 PM
Joined: Jan 2004
Posts: 8,230
fredericksburg,va
C
cudaman1969 Offline OP
master
cudaman1969  Offline OP
master
C

Joined: Jan 2004
Posts: 8,230
fredericksburg,va
Originally Posted by CMcAllister
Originally Posted by W.I.N. Racing
All the same mfg'r??


Big difference between good stuff and China junk. Pay half price, get what you pay for.

Amazon will probably get you counterfeit stuff.

Get hooked up with Randy's. Do 10 or 15K a year+ and get a deal.

ATech will save you a few pennies but free freight takes a lot more then $99. Whoopie.

There are no deals on parts anymore. Unless you buy in to the deep deal at the source. Even owning a shop gets you very little off of what Harry the Homeowner gets walking in off the street.

It ain't 1969 anymore.

Summit and Jegs had same price as Amazon, same brand. They came from a national name brand store, they sponsor a national Event. I’m amazed every time he gets me a part or parts. We’re not talking penny’s here. Heck I’m thinking of getting a job there just for that benefit.

Re: Markup on parts [Re: cudaman1969] #3118365
02/02/23 05:01 PM
02/02/23 05:01 PM
Joined: Jan 2003
Posts: 20,711
A collage of whims
topside Offline
Too Many Posts
topside  Offline
Too Many Posts

Joined: Jan 2003
Posts: 20,711
A collage of whims
I managed an AutoZone store for awhile, and employees got a 25% discount; the mentality their upper management has tells me that was of little concern to them.
Name-brand US-made or offshore origin, same deal.
Wouldn't surprise me if their mark-up was 100%; they have to eat a lot of stuff when Customers buy the wrong part, try to hammer it in, then return for the full refund.
AZ returns those to the manufacturer and they end up eating that expense instead of AZ..."cost of doing business".
Storefronts are expensive to build, operate, and staff, plus the advertising/promotion, loaner tools, and there are several layers (seemed at least 3) of management.
The cost for plowing snow one month was around $1,200, but that was a pretty heavy winter.
A buddy of mine who makes tools sells directly to Summit, Jeg's, Speedway, etc, but IIRC Summit's stuff mainly comes from/through A-Tech; maybe Jeg's & etc, too.
He actually makes a bigger % than they do, but he buys mostly offshore and does his own assembly, quality control/testing, and some packaging.
IIRC, the stuff retails at about 75 - 100% markup above what he gets.

Re: Markup on parts [Re: topside] #3118367
02/02/23 05:08 PM
02/02/23 05:08 PM
Joined: Dec 2013
Posts: 4,661
Wichita
G
GY3 Offline
master
GY3  Offline
master
G

Joined: Dec 2013
Posts: 4,661
Wichita
You guys think the automotive markup is bad, try the HVAC industry.

The manufacturer sells it to the distributor who marks it up (won't say how much because I'm a distributor) who then sells it to the contractor who often has a markup of 1.7 to 2 times what they purchased it for.


'63 Dodge 330
11.19 @ 121 mph
Pump gas, n/a, through the mufflers on street tires with 3.54's. 3,600 lbs.
10.01 @ 133mph with a 250 shot of nitrous an a splash of race gas. 1.36 60 ft. 3,700 lbs.

Re: Markup on parts [Re: GY3] #3118382
02/02/23 06:28 PM
02/02/23 06:28 PM
Joined: Jan 2003
Posts: 5,438
So Cal
Sinitro Offline
master
Sinitro  Offline
master

Joined: Jan 2003
Posts: 5,438
So Cal
Markup % depends mainly upon the distribution channel..
Goes from the OE supplier to distributor to retail seller, so from prime OE cost the part is marked up 4X/5X times..

Just my $0.02... wink

Re: Markup on parts [Re: cudaman1969] #3118390
02/02/23 07:06 PM
02/02/23 07:06 PM
Joined: Oct 2007
Posts: 4,205
New York
polyspheric Offline
master
polyspheric  Offline
master

Joined: Oct 2007
Posts: 4,205
New York
I got counterfeit Norelco electric razor blades in sealed "factory" boxes from Amazon!

Of course, the other scam is a HIGH price ("this can't be Chinese!").


Boffin Emeritus
Re: Markup on parts [Re: Sinitro] #3118391
02/02/23 07:06 PM
02/02/23 07:06 PM
Joined: Oct 2005
Posts: 8,850
Ontario, Canada
S
Stanton Offline
Don't question me!
Stanton  Offline
Don't question me!
S

Joined: Oct 2005
Posts: 8,850
Ontario, Canada
Start a business reselling a product. Then let's hear what you have to say about markup !!

Re: Markup on parts [Re: cudaman1969] #3118420
02/02/23 08:59 PM
02/02/23 08:59 PM
Joined: Jan 2003
Posts: 11,986
Benton, IL.
D
DaveRS23 Offline
Special needs idiot
DaveRS23  Offline
Special needs idiot
D

Joined: Jan 2003
Posts: 11,986
Benton, IL.
There are different levels of precision within the same part number of bearings. Which impacts the price outside of 'markup' and even brand.

'Some applications demand a high level of precision that cannot be achieved with standard tapered roller bearings. This includes many machining, printing press and rolling mill applications where combinations of tight tolerances, high speeds and radial and thrust loads are present. For more than 50 years, The Timken Company has offered a wide array of precision-class tapered roller bearings that deliver superior accuracy and control in critical applications.

Different Levels of Precision Meet Critical Needs
The more demanding the precision objective, the more accurate the bearing must be. Timken provides four precision classes, in both metric
and inch systems, that cover the full range of precision application requirements. In ascending order of accuracy, they are identified in the metric system as Class C, B, A and AA, while in the inch system as Class 3, 0, 00 and 000. The chart below summarizes the accuracy of Timken precision bearings as compared to standard bearings. All Timken precision bearings have an electrolyte acid dot etched on both
faces of each cone and cup. This dot indicates the high point of the cone and cup run-out, respectively, and is used when mounting to obtain the best performance
'

www.timken.com/resources/precision-tapered-roller-bearings-brochure

'The Annular Bearing Engineering Committee (ABEC) created a rating system that has become the industry standard for ball and roller bearing tolerances. ABEC includes five tolerances classes: 1, 3, 5, 7, and 9 with 1 being the widest and 9 the tightest. Thus, bearings with a higher ABEC rating have tighter tolerances, and that means better precision, higher efficiency, and the potential to accommodate applications requiring high speeds.

It is important to note that a bearing in a higher ABEC class does not imply that the bearing can carry a higher load, rather it can carry the same load as an analogous bearing with a lower rating but at higher speed, thanks to its more controlled runout and smaller endplay. ISO has an equivalent standard (ISO 492) for bearing tolerances that corresponds to the ABEC ratings as follows: normal class 6x (tightest), 6, 5, 4, and 2.

The ABEC tolerance classifications specify both tolerances of size and form for the individual inner and outer rings. The critical features of the rings include the bore (or inner diameter of the inner ring), the outer diameter of the outer ring, the ring widths, and the raceways of each ring. Tolerances of form include roundness, taper, runout, and parallelism
.'

https://blog.emersonbearing.com/blo...wisely-how-fast-your-bearings-need-to-go


Master, again and still
Re: Markup on parts [Re: DaveRS23] #3118437
02/02/23 09:27 PM
02/02/23 09:27 PM
Joined: Aug 2003
Posts: 43,088
Bend,OR USA
C
Cab_Burge Offline
I Win
Cab_Burge  Offline
I Win
C

Joined: Aug 2003
Posts: 43,088
Bend,OR USA
Originally Posted by DaveRS23
There are different levels of precision within the same part number of bearings. Which impacts the price outside of 'markup' and even brand.

'Some applications demand a high level of precision that cannot be achieved with standard tapered roller bearings. This includes many machining, printing press and rolling mill applications where combinations of tight tolerances, high speeds and radial and thrust loads are present. For more than 50 years, The Timken Company has offered a wide array of precision-class tapered roller bearings that deliver superior accuracy and control in critical applications.

Different Levels of Precision Meet Critical Needs
The more demanding the precision objective, the more accurate the bearing must be. Timken provides four precision classes, in both metric
and inch systems, that cover the full range of precision application requirements. In ascending order of accuracy, they are identified in the metric system as Class C, B, A and AA, while in the inch system as Class 3, 0, 00 and 000. The chart below summarizes the accuracy of Timken precision bearings as compared to standard bearings. All Timken precision bearings have an electrolyte acid dot etched on both
faces of each cone and cup. This dot indicates the high point of the cone and cup run-out, respectively, and is used when mounting to obtain the best performance
'

www.timken.com/resources/precision-tapered-roller-bearings-brochure

'The Annular Bearing Engineering Committee (ABEC) created a rating system that has become the industry standard for ball and roller bearing tolerances. ABEC includes five tolerances classes: 1, 3, 5, 7, and 9 with 1 being the widest and 9 the tightest. Thus, bearings with a higher ABEC rating have tighter tolerances, and that means better precision, higher efficiency, and the potential to accommodate applications requiring high speeds.

It is important to note that a bearing in a higher ABEC class does not imply that the bearing can carry a higher load, rather it can carry the same load as an analogous bearing with a lower rating but at higher speed, thanks to its more controlled runout and smaller endplay. ISO has an equivalent standard (ISO 492) for bearing tolerances that corresponds to the ABEC ratings as follows: normal class 6x (tightest), 6, 5, 4, and 2.

The ABEC tolerance classifications specify both tolerances of size and form for the individual inner and outer rings. The critical features of the rings include the bore (or inner diameter of the inner ring), the outer diameter of the outer ring, the ring widths, and the raceways of each ring. Tolerances of form include roundness, taper, runout, and parallelism
.'

https://blog.emersonbearing.com/blo...wisely-how-fast-your-bearings-need-to-go

I saw this on my airplane wheel bearings that had to have a bearing part # with a G suffix on it to be FAA legal, 4 times more money than the standard automotive wheel bearings work


Mr.Cab Racing and winning with Mopars since 1964. (Old F--t, Huh)
Re: Markup on parts [Re: GY3] #3118445
02/02/23 09:42 PM
02/02/23 09:42 PM
Joined: Jan 2004
Posts: 8,230
fredericksburg,va
C
cudaman1969 Offline OP
master
cudaman1969  Offline OP
master
C

Joined: Jan 2004
Posts: 8,230
fredericksburg,va
Originally Posted by GY3
You guys think the automotive markup is bad, try the HVAC industry.

The manufacturer sells it to the distributor who marks it up (won't say how much because I'm a distributor) who then sells it to the contractor who often has a markup of 1.7 to 2 times what they purchased it for.

I can vouch for that, just had the blower replaced on inside unit. Motor is about the size of a gallon can, took him 20 minutes to replace and put all back together, $1309, had to have it because it was cold (22) outside. But I’ve probably done $100,000s worth of cabinets in his houses and garages, his mothers house and his wife’s mother’s house. We’re Mopar buddies too but he’s RICH!

Re: Markup on parts [Re: cudaman1969] #3118462
02/02/23 10:45 PM
02/02/23 10:45 PM
Joined: Jan 2004
Posts: 4,559
Motor City
6
6PKRTSE Offline
master
6PKRTSE  Offline
master
6

Joined: Jan 2004
Posts: 4,559
Motor City
I have been a WD or better almost 30 years. I purchase several hundreds of thousands of dollars of race parts a year. It is amazing the cost savings we get off of retail or list pricing on so many parts.


1963 Belvedere 440 Max Wedge Tribute
1970 Charger R/T S.E. 440 Six Pack
1970 Challenger R/T, 528 Hemi
1970 Charger 500 S.E. 440 4 BBL
1970 Plymouth Road Runner 383
1974 Chrysler New Yorker 440
1996 2500 RAM 488 V-10 4X4
2004 3500 Dually Cummins 4x4
2012 Challenger R/T Classic.
Re: Markup on parts [Re: 6PKRTSE] #3118533
02/03/23 10:33 AM
02/03/23 10:33 AM
Joined: Jan 2003
Posts: 10,686
North Dakota
6PakBee Offline
I Live Here
6PakBee  Offline
I Live Here

Joined: Jan 2003
Posts: 10,686
North Dakota
The way I look at it, buying new parts is no different than buying used parts. Pay the price or go without. Period.


"We live in a time when intelligent people are being silenced so that stupid people won't be offended".
Re: Markup on parts [Re: John Brown] #3118568
02/03/23 11:48 AM
02/03/23 11:48 AM
Joined: Mar 2005
Posts: 3,021
NY
B
B1duster Offline
master
B1duster  Offline
master
B

Joined: Mar 2005
Posts: 3,021
NY
Originally Posted by John Brown
143% increase in pricing is much more common in the autoparts business than the 200% increase is.

So, a part that cost a seller $10.00 would be marked up to $14.30, not $20.00.

Take this from a 30+ year parts guy / sales rep.


Wouldn’t a 143% increase in price on a $10 item be $24.30 ?

Re: Markup on parts [Re: B1duster] #3118617
02/03/23 03:03 PM
02/03/23 03:03 PM
Joined: Feb 2005
Posts: 20,141
PA.
pittsburghracer Offline
"Little"John
pittsburghracer  Offline
"Little"John

Joined: Feb 2005
Posts: 20,141
PA.



Have you ever watched Shark Tank and see what markup was. How do you think the rich get richer


1970 Duster
Edelbrock headed 408
5.984@112.52
422 Indy headed small block
5.982@112.56 mph
9.42@138.27

Livin and lovin life one day at a time




Re: Markup on parts [Re: B1duster] #3118623
02/03/23 03:10 PM
02/03/23 03:10 PM
Joined: Jan 2003
Posts: 11,986
Benton, IL.
D
DaveRS23 Offline
Special needs idiot
DaveRS23  Offline
Special needs idiot
D

Joined: Jan 2003
Posts: 11,986
Benton, IL.
Originally Posted by B1duster
Originally Posted by John Brown
143% increase in pricing is much more common in the autoparts business than the 200% increase is.

So, a part that cost a seller $10.00 would be marked up to $14.30, not $20.00.

Take this from a 30+ year parts guy / sales rep.


Wouldn’t a 143% increase in price on a $10 item be $24.30 ?


Yes.

100% of $10 is $10.
43% of $10 is $4.30.
So, 143% of $10 is $14.30.

The part cost $10
100% markup would add $10
43% markup would add $4.30
Final price would be $24.30.


Master, again and still
Re: Markup on parts [Re: 6PKRTSE] #3118654
02/03/23 04:18 PM
02/03/23 04:18 PM
Joined: Dec 2005
Posts: 11,479
Fulton County, PA
C
CMcAllister Offline
Mr. Helpful
CMcAllister  Offline
Mr. Helpful
C

Joined: Dec 2005
Posts: 11,479
Fulton County, PA
Originally Posted by 6PKRTSE
I have been a WD or better almost 30 years. I purchase several hundreds of thousands of dollars of race parts a year. It is amazing the cost savings we get off of retail or list pricing on so many parts.


That volume matters. Imagine the deals he gets and the leverage Paul Sergi has. I've heard of how negotiations with that group go when someone is trying to get in the door there.

Some little 1 or 2 man race shop is lucky if they can make 10% on any of this stuff. Not without investing some money. WD. jobber, racer, net and the rest of it are out the window.


If the results don't match the theory, change the theory.
Re: Markup on parts [Re: CMcAllister] #3118671
02/03/23 04:59 PM
02/03/23 04:59 PM
Joined: Sep 2003
Posts: 19,301
north of coder
moparx Online content
"Butt Crack Bob"
moparx  Online Content
"Butt Crack Bob"

Joined: Sep 2003
Posts: 19,301
north of coder
so i guess what the parts store guy told me back in 1968 still [kinda] applies today. biggrin
beer

Re: Markup on parts [Re: Cab_Burge] #3118834
02/04/23 12:21 PM
02/04/23 12:21 PM
Joined: Dec 2006
Posts: 2,102
Byron, NY
W.I.N. Racing Offline
top fuel
W.I.N. Racing  Offline
top fuel

Joined: Dec 2006
Posts: 2,102
Byron, NY
Originally Posted by Cab_Burge
Originally Posted by DaveRS23
There are different levels of precision within the same part number of bearings. Which impacts the price outside of 'markup' and even brand.

'Some applications demand a high level of precision that cannot be achieved with standard tapered roller bearings. This includes many machining, printing press and rolling mill applications where combinations of tight tolerances, high speeds and radial and thrust loads are present. For more than 50 years, The Timken Company has offered a wide array of precision-class tapered roller bearings that deliver superior accuracy and control in critical applications.

Different Levels of Precision Meet Critical Needs
The more demanding the precision objective, the more accurate the bearing must be. Timken provides four precision classes, in both metric
and inch systems, that cover the full range of precision application requirements. In ascending order of accuracy, they are identified in the metric system as Class C, B, A and AA, while in the inch system as Class 3, 0, 00 and 000. The chart below summarizes the accuracy of Timken precision bearings as compared to standard bearings. All Timken precision bearings have an electrolyte acid dot etched on both
faces of each cone and cup. This dot indicates the high point of the cone and cup run-out, respectively, and is used when mounting to obtain the best performance
'

www.timken.com/resources/precision-tapered-roller-bearings-brochure

'The Annular Bearing Engineering Committee (ABEC) created a rating system that has become the industry standard for ball and roller bearing tolerances. ABEC includes five tolerances classes: 1, 3, 5, 7, and 9 with 1 being the widest and 9 the tightest. Thus, bearings with a higher ABEC rating have tighter tolerances, and that means better precision, higher efficiency, and the potential to accommodate applications requiring high speeds.

It is important to note that a bearing in a higher ABEC class does not imply that the bearing can carry a higher load, rather it can carry the same load as an analogous bearing with a lower rating but at higher speed, thanks to its more controlled runout and smaller endplay. ISO has an equivalent standard (ISO 492) for bearing tolerances that corresponds to the ABEC ratings as follows: normal class 6x (tightest), 6, 5, 4, and 2.

The ABEC tolerance classifications specify both tolerances of size and form for the individual inner and outer rings. The critical features of the rings include the bore (or inner diameter of the inner ring), the outer diameter of the outer ring, the ring widths, and the raceways of each ring. Tolerances of form include roundness, taper, runout, and parallelism
.'

https://blog.emersonbearing.com/blo...wisely-how-fast-your-bearings-need-to-go

I saw this on my airplane wheel bearings that had to have a bearing part # with a G suffix on it to be FAA legal, 4 times more money than the standard automotive wheel bearings work


I used to deal with precision tapered roller bearing that were $7500/00 each they were a 12" bore ceramic roller. 000 bearing. Would routinely see run outs of the assembly (after the async. was ground out) of .000004"Radial with a 13000000lbs stiffness .... Just thought I'd share.


'01 P1500, Blown/Inj BAE,/Veney ,Bruno/CS2,Dana 60
'01 Dodge 3500 S Cummins Auto, Fresh air kit, 4" Exhaust,
'05 Dodge Magnum R/T - Too Much to list
'60 Willys CJ5
'01 International LPX - Project,DT466, Allison
'64 Plymouth Valiant, Inj 528 Hemi, 2spd
Re: Markup on parts [Re: W.I.N. Racing] #3118861
02/04/23 02:06 PM
02/04/23 02:06 PM
Joined: Jan 2003
Posts: 11,986
Benton, IL.
D
DaveRS23 Offline
Special needs idiot
DaveRS23  Offline
Special needs idiot
D

Joined: Jan 2003
Posts: 11,986
Benton, IL.
".000004"Radial with a 13000000lbs stiffness"

shock Holy Cannoli!


Master, again and still
Re: Markup on parts [Re: DaveRS23] #3119124
02/05/23 04:05 PM
02/05/23 04:05 PM
Joined: Sep 2003
Posts: 19,301
north of coder
moparx Online content
"Butt Crack Bob"
moparx  Online Content
"Butt Crack Bob"

Joined: Sep 2003
Posts: 19,301
north of coder
Originally Posted by DaveRS23
".000004"Radial with a 13000000lbs stiffness"

shock Holy Cannoli!






and WOW to boot ! eek
beer

Re: Markup on parts [Re: cudaman1969] #3120608
02/11/23 03:43 AM
02/11/23 03:43 AM
Joined: Jan 2003
Posts: 771
Btween a rock and a hard place
moparlulu Offline
super stock
moparlulu  Offline
super stock

Joined: Jan 2003
Posts: 771
Btween a rock and a hard place
I had a “in” at Holley, bought a set of coated 2” super comps,287.00 his employee cost. retail close to 1300.00, sniper full kit 495.00! Son bought a dominator system 600.00, coated 17/8”comp headers 267.00 I believe is what I payed, 750.00 retail? Yep quite the markup..

Re: Markup on parts [Re: moparlulu] #3120656
02/11/23 12:33 PM
02/11/23 12:33 PM
Joined: Dec 2005
Posts: 11,479
Fulton County, PA
C
CMcAllister Offline
Mr. Helpful
CMcAllister  Offline
Mr. Helpful
C

Joined: Dec 2005
Posts: 11,479
Fulton County, PA
The old saying is - It takes money to make money.


If the results don't match the theory, change the theory.
Re: Markup on parts [Re: cudaman1969] #3120689
02/11/23 02:00 PM
02/11/23 02:00 PM
Joined: Oct 2007
Posts: 4,205
New York
polyspheric Offline
master
polyspheric  Offline
master

Joined: Oct 2007
Posts: 4,205
New York
When I was in the motorcycle parts business, a trade magazine published a report on overhead etc. vs. sale price.
You must mark up your total cost (wholesale price + shipping) by 28% just to break even. Any discount larger than 22% from full retail price means you lose money on the sale.
My current products have a production cost of $ 4.86 (or less) including delivery to me, and sell for $19.95 (or less), so I can be generous and offer volume discounts.
Obviously, the net cost does not include many thousands of hours spent researching & writing these articles. http://www.victorylibrary.com/books1.htm


Boffin Emeritus
Re: Markup on parts [Re: GY3] #3120727
02/11/23 05:25 PM
02/11/23 05:25 PM
Joined: Nov 2013
Posts: 687
Southern Alberta
Uberpube Offline
mopar
Uberpube  Offline
mopar

Joined: Nov 2013
Posts: 687
Southern Alberta
Originally Posted by GY3
You guys think the automotive markup is bad, try the HVAC industry.

The manufacturer sells it to the distributor who marks it up (won't say how much because I'm a distributor) who then sells it to the contractor who often has a markup of 1.7 to 2 times what they purchased it for.


Most of the difference for the HVAC industry, is having to cover the manufactures defects with labour out of your own pocket. When a new part goes bad, we mostly end up eating the labor to change defective parts. Up here it's x2 for stuff 100.00 and cheaper, 1.65 for 100-500, 1.5 for 500 plus. Sometimes the manufacturer won't even warranty their own stuff, especially electronic parts.

Page 1 of 2 1 2






Powered by UBB.threads™ PHP Forum Software 7.7.1