Quote: "The reason s MAP price has to be in effect is do to "WHORES" out there like we have seen where Trick went with pricing......right down the toilet. Dealers should all give a fair market price which is already far below retail. There is absolutely nothing wrong with the word profit. Most people do not realize "we" as dealers which I am for just about everyone out there, DO NOT make hardly anything for profit. The other thing consumers must realize is not only are you purchasing a product, but many times depending on who your dealing with, your gaining valuable information. If someone buys components from me there usually ask me about 3-10 other questions engine related , which I assist them on. The pricing does need to be even across the board to benefit everyone- consumer,dealer, and manufacturer. Otherwise everyone gets hurt."

Dean is right. Knowledge is powerfull and he is the man. It is worth it for me to purchase from someone that I can call and ask a question.

Ed

Actually no they can not if you have a contract. There is a audio dealer in our town that sells on the cheap and a company tried to stop selling to them and they went after them and won!

We run at 40-60% profit margines on product. At the end of the year you are still only at about 10-15% once all is said and done.

What gets me are those that own their own business - I buy from them at their listed price - no complaining - then I work 20 hrs on their boat and they expect when I figure the bill to get the parts at MY cost. I don't mind being fair - splitting the difference if my cost and retail is way apart - but just cause I work a full time job and enjoy turning wrenches when I can - doesn't mean I'm in it for just fun. Most of those who beat me up and want me to work the insurance claim in their favor I don't do business with afterwards. And there's not a ton of mark up in Marine parts - hell Mercedes parts aren't marked up any more than a Ford part.

Ross it's common knowledge on the river that you will work long hours for cold beer and pizza, are you saying you want money too?

Having been doing this for almost three years now, I can tell you that by the time you ship, pay CC fees and cover minimal advertising expenses etc.. it is much less than 10%.

Almost not worth it financially, but enjoy the customers (for the most part), get to write off my boating and hopefully get people what they need at a fair price.

SO GET YOUR ORDERS IN NOW!!!!

Seriously, thanks for all the business!

Another thing that's eating away at the industry and making it next to impossible for the quality shops to compete is the margins given to mega dealers like CP (aka Hardin and KEPP) and Teague.

I know they are advertisers here so this post might go "poof" but so be it.

Example, a friend who has been a CMI dealer for over 8 years is forced to buy 496 headers from Teague as he has the exclusive distribution rights to that product. The dealer price a whopping 5% lower than they will sell them to you over the phone. On the regular products the "dealer" price to my friend 15% HIGHER than what Teague buys for the same part. On a good day he MIGHT make 5% net profit on the parts. Most days it's break even and if he really counts the time he wastes chasing parts and vendor issues he loses money.

The Marine parts business is the last place anyone who has any sense would try to make money these days UNLESS you are the manufacturer.

Get off the computer and get my motors done.:D:D:D

map
 

I do not know about all dealers and manufactures contracts but some will put if in the contracts ask a rolex dealer to give you one at just above cost and see what happen when rolex finds out poof he is not a rolex dealer anymore, all company's are different some give you guidelines on discounts certain % for certain products.

They do that in the appliance industry also. Most of what we sell is a manufacture set price. We call it UMRP,If you get caught selling below that price some, not all will pull the product from you.

I recall a few years back when the Maytag Neptune was the big thing out. Home depot was selling them below UMRP and several dealers complained and poof,Home depot lost that product for 1 year. If they were willing to pull it from a national chain we knew they would pull it from us.

Luckily for me most of the products i sell you don't see in box stores, and all the dealers around here follow the umrp pretty closely.