Date: Thu, 27 Aug 1998 02:24:45 -0700
Reply-To: Old Volks Home <jim@OLDVOLKSHOME.COM>
Sender: Vanagon Mailing List <Vanagon@vanagon.com>
From: Old Volks Home <jim@OLDVOLKSHOME.COM>
Subject: Re: internet discount parts - shops are catching on.... :<(
In-Reply-To: <19980824135624.8009.rocketmail@send101.yahoomail.com>
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At 06:56 AM 8/24/98 -0700, Sam Scholten wrote:
>I dunno... maybe the shop will lose its bulk discount rate from a
>supplier if it doen't buy/sell/use enough parts. Never having been a
>buyer for anyone, I can't say for sure. Opinion, Ron?
**********************************************
FWIW and based on my experience here in California for the past 20+ years
I've been in the biz - Most, but not all shops do have to purchase set
amounts per month to maintain their discount, especially independently
owned shops tied to a national name like NAPA for example. Having worked
full time for an import parts store in Southern California from 77-82
before taking my business to full time, it was definitely the rule and
often "tied up" purchasing from one source at THEIR price - purchasing from
a less expensive source would often cut into purchases from the prime
source and they'd get real ticked off. I don't know about the rest of the
country, but the "Independently Owned (Mom & Pop) Auto Parts Store" is fast
becoming a thing of past here in California these days, most of them being
bought out or being heavily linked to national names like NAPA, Beck
Arnley/Worldparts, etc., which often results in higher prices. I know for
a fact and from experience that Beck Arnley/Worldparts issues price lists
to shops and stores based on the volume they do * and believe it or not *
also based on the area of the country the business is located. I remember
back in 1979, I received two sets of price lists from BA/W. One set was
marked "USA Southwest Except California" and the other set "California
Only". Pricing was really weird - a Bug muffler went for about 15 percent
higher outside of California. I have a set of these price lists somewhere
in my archives - I'll have to dig 'em out someday, if anything to how much
things have gone up since then.
Example - On a recent road trip to the Bay Area and back (in triple digit
weather), I came across a hapless soul with a 83.5 Wasser with a frozen
water pump in a parking lot (in Fairfield, CA), whom I checked to see if I
could lend a hand. He had just purchased a Beck Arnley/Worldparts water
pump and was installing it when I asked just how much he paid for it - $109
(Italian BTW) - considerably more than what Ron or myself charges for a
German pump. Locally, the Napa stores here in Redding are asking $89 to
$96 retail for this pump as well.
However, discounting from the importer/supplying warehouse to the shop is
usually left to the sales rep of the warehouse servicing that shop (or
store) and a lot depends on the relationship of the sales rep and the shop
owner, most of which is pricing and availability of course.
Labor rates play an important part too. Here in California (and even in
Redding to some extent), I see rates ranging from $45/hr to $90/hr - and
despite the quoted higher rates, these particular shops are doing an
incredible amount of business, so go figure.
Jim Thompson
84 Westy 2.1 * 62 Sedan * 90 Fox Wagon
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