Eddie Marine forcing dealers to raise prices!!!!!!!
#21
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#22
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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.
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#23
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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.
#24
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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.
Last edited by Wobble; 04-04-2008 at 02:23 PM. Reason: missed word
#25
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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.
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.
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#27
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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.
#28
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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.
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.
#29
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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.
I scraped the big engine for the time being and am building a nasty little 468 with 8lbs of boost and a really BIG cam.