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Discussion Boards > Active Subjects > Messages as Posted > Tractor Engine Repair Rebuild Forum

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 07-27-2001, 18:49 Post: 30457
Rich Luhr



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Does anyone have a recommendation of sources for mail order parts? I recently needed some parts for my Land Pride implement. Both local dealers did not stock most parts, and while they promised 3-day delivery, it's been a week and still no parts. Now, to be fair, I could have asked for overnight delivery, so perhaps the delay is not the dealers' fault. But, the prices are brutal. This got me wondering if there are mail order or online parts companies who can offer better prices...






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 07-29-2001, 01:12 Post: 30481
Roger L.



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I'm sure wondering what parts you are needing. Not parts for a back blade I hope.






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 07-29-2001, 10:24 Post: 30483
Rich Luhr



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Whoops, I guess I should have been more clear. I have a separate thread on this board regarding my recently-broken Land Pride finish mower. I had to order a replacement spindle/pulley assembly. The replacement cost of the entire assembly was $140. Repairing the broken parts was estimated at $100+ (shop labor was needed to press out bearings and such -- stuff that I could not do). I chose to order the replacement so I could get back to work ASAP, and repair the broken one at leisure, but this strategy has backfired since it's been a week and still no replacement unit (or parts for the broken one)! I know dealers and manufacturers typically mark up parts tremendously, but I'm still shocked at the prices: $5 for a single hardened bolt, $38 for a spindle, $16 for a bearing ... am I just unrealistic or is there a better way to go for these small parts?






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 07-29-2001, 10:54 Post: 30485
Roger L.



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I don't know of any better way to go on these small parts. You will see that price situation occur when a small company pays too much to have their parts made - and then each dealer in the chain adds to the cost. Is it possible to deal directly with the factory?






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 08-01-2001, 09:02 Post: 30558
Rich Luhr



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I guess not. Looks like Land Pride protects its dealer network, just like most other manufacturers. But I've been advised to try a dealer close to the factory on the theory that the dealer would expedite the parts to me.






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 08-01-2001, 22:33 Post: 30580
Rick



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Well I do not know how other manufactures do it, New Holland only allows there dealers a 23-28% margin from cost to there suggested list price. We as dealers are not allowed to bump up over list. If we do we are penalized on our yearly dealer standards evaluation. This is basically a black mark on our dealer record. Which cost the dealer in the long run with New Holland. So as you can see if you have $5.00 part with a margin of 28% thats a small profit of $1.40. If you take into account the cost of the dealers building, his parts stocking cost such as interest, his employee cost, electricity cost, and all other cost associated with running a dealership you can see this is not really a huge margin. So maybe the next time you need to complain maybe you should think about what it would be like not to have a dealer available for replacement parts because the 1.40 profit on that 5.00 sale was not enough to keep the doors open. I Get tired of hearing how much money our dealership is making because people think we are dealing on such huge margins. when in acctuality we are dealing in volume of sales and not the margin to keep our doors open.






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 08-02-2001, 10:35 Post: 30588
Al



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23-28% seems to be a fairly standard markup for retail unless you're in the clothing, jewelry or furniture business. I think what Rich is getting at is why should he be paying list price for parts that are not readily available to him. He incurs time and expenses twice when he must go to the dealer once to order and once to pick up his parts. Also most dealers do not carry much in inventory beyond the normal maintenace items and small hardware so there's also a work delay while waiting for the parts. We all know if he's really in a hurry he can pay extra to have it expedited. The true overhead to the dealer is minimal but the markup is full list.






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 08-02-2001, 10:36 Post: 30589
Rich Luhr



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Hey, relax. Nobody said the dealer was making an unfair profit. But as a consumer, I get to question prices when I want and look for better deals if I can find them. That's the free market. If you're confident you provide good (competitive) service and parts availability, what do you have to worry about? Besides, there's another dimension to this: manufacturers in all industries often keep margins low on finished products (as low as 1% in the consumer electronics industry) but make it up on replacement parts. That's why the total value of a car in terms of its replacement parts is probably double or triple what the complete car costs! While I'm sympathetic to a local dealer struggling "to keep the doors open", I also am not wild about paying a 25% markup on a $140 item ... discounting can and does occur in every industry and lawn mower parts are no exception. Like most consumers, I'll look for a better deal when I can, and it's certainly not unfair to anyone to do that.






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 08-02-2001, 10:37 Post: 30590
Rich Luhr



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Hey, Al, you put it better than I ever could have! Thanks.






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 08-02-2001, 17:48 Post: 30605
Rick



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Al how can you say a dealers expense is minimal! Just the interest on 350,000.00 dollars worth of parts, which is the amount of parts we have in stock all the time adds up. what would you rather have interest on that money in a bank or a pile of parts on your shelves. It just bogles my mind that you think the expenses are minimal, every department has to pay part of the expense, property cost, building cost eviromental cost electricity wages insurance, furniture, computer systems, which almost alway have to be updated every 5 years at an expense of 16-32000.00 depending on what upgrades you do, special shop tools to keep your equipment running good, office supplies, part storage equipment, the list goes on and on I just cant even begin to imagine how you think those expense are minimal! I am not trying to be a jerk about this but there is a lot of expense in one of these dealerships. If there was not everyone would be doing it and you dont see that happening do you? for every dollar we spend and invest in our business we are lucky to have a 4-6% profit at the end of the year. So you figure it out that kind of profit on several hundred thousand dollars worth of investment, with a lot of work involed.
it might be easier if every dealer thought about it to just close there doors and invest there money in a cd they would be farther ahead!






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Discussion Boards > Active Subjects > Messages as Posted > Tractor Engine Repair Rebuild Forum

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Al 2 | auerbach 1 | greg_g 1 | kthompson 1 | ozarkjohn 1 | Rich Luhr 5 | Rick 2 | Roger L. 2 |

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