Date:         Wed, 22 Sep 1999 02:00:59 -0700
Reply-To:     Bill <bill@FREEHOLDER.COM>
Sender:       Vanagon Mailing List <vanagon@gerry.vanagon.com>
From:         Bill <bill@FREEHOLDER.COM>
Subject:      Re: VW Australia v Busdepot
Comments: To: arbosch@RA.ROCKWELL.COM
Content-Type: text/plain; charset="us-ascii"

I'm always amused when I hear non-retailers discussing markups.  People who
aren't in business have no idea of what a fair markup is.  If you buy for
$400 and sell for $450, that's a 12.5% markup, or about 11% gross profit.
"Regular" retailers, like Sears, Penneys, etc., need to make 50% gross
profit, so if they buy it for a dollar, they sell it for two dollars.
"Discount" retailers, like Wal-Mart, K-Mart, etc., work on about 33% gross
profit, so if they buy it for a dollar, they sell it for $1.50.  Mail order
retailers have a bit lower overhead, so they can operate with a bit lower
gross profit, but not a lot lower, or they won't be around long.

An auto repair shop is both a retailer and a service facility, and they
have just as much need to mark their parts up as any other retailer.  If
you buy a water heater from Sears, you can have them install it, but you
don't expect them to sell you the water heater for at or near cost just
because they're making a few bucks putting it in.

If you are really so concerned, buy the part from the cheapest place and
put it in yourself.

At 11:03 AM 9/21/99 -0500, Alan Bosch wrote:
>pointed out to the shop that heads could be bought for $400 from Bus Depot,
>a flat "We don't buy from them" was issued.  Well, why not?  "Because we
>mark our parts up".  No problem.  Buy from BusDepot and charge me $450 a
>head. It's worth it to me, and I understand you need to make a living too.

Bill (SE Arizona) (Bill@freeholder.com) HTTP://www.freeholder.com
----------------------------------------------------------
It ain't what you don't know that hurts you,
it's what you do know that's wrong.