Explain part cost discrepancies

[mjk1967]

For this purpose, I'll use the following scenario....
Nissan Quest - Front LCA
Local Dealer - 1050 for the pair
Nissan Parts online - 550.00

I understand the overhead, etc -- but seriously, the local dealer is essentially double ?

Plenty of parts guys here can steer me straight...

 

[BobsArmory]

They all do it. I see it using GMParts.com some dealers have prices below MSRP some are more than double.

 

[robbobster]

Common. Lots of OEM online discounters are run out of dealership parts departments, with a different name and different phone number.

You’ll get a higher “retail” price if you call or go to the dealership parts department directly…and a lower discounted price if you use the website.

As one example, GM parts seller “World Parts Direct” is run out of Jupiter Chevrolet in Dallas.

 

[The Critic]

It's called Matrix Pricing.

 

[JeffKeryk]

I replace the Toyota composite filter housings with the metal version. When I order from online to be delivered to Stevens Creek Toyota (near me) they are a fraction of the dealer cost. Cheaper than the composite and cheaper than the Dorman at Amazon as I recall.

 

[skyactiv]

Don't be afraid to show up in person and tell the parts guy nicely you can buy the same OEM part from a dealer that sells online and it includes free shipping--if so. I bought a case of oil filters that way for a WRX I once had at a Sonic dealer and other parts for a GTI I once owned at a Sonic VW dealer across the street. The VW dealer set up an account name for me and told me to use it when I needed parts. I got OEM parts as cheap as I would have online.

 

[robbobster]

It's called Matrix Pricing.

Thank you…I knew there was a name for it

 

[bdcardinal]

Also the dealer might have also quoted one time use parts on their estimate. I just quoted an axle seal and pinion seal on the front axle of a Raptor and there were 10 or so additional parts I quoted to do a complete repair. Also this morning I did a quote for exhaust manifolds and turbos on a Transit with a 3.5EB. The service procedure calls for removing the engine crossmember and all of those bolts are one time use.

 

[VWRand]

Don't be afraid to show up in person and tell the parts guy nicely you can buy the same OEM part from a dealer that sells online and it includes free shipping--if so. I bought a case of oil filters that way for a WRX I once had at a Sonic dealer and other parts for a GTI I once owned at a Sonic VW dealer across the street. The VW dealer set up an account name for me and told me to use it when I needed parts. I got OEM parts as cheap as I would have online.

And be prepared to be told "go buy them online then" Most parts employees at dealerships are paid on commission.

 

[97K15004WD]

Here's a site that helps explain Matrix Pricing sold as a software suite. Note the use of Margin versus Markup. Big difference

https://www.noregon.com/setting-the-right-parts-margin-a-guide-for-heavy-duty-truck-repair-shops/

 

[bowlofturtle]

Don't be afraid to show up in person and tell the parts guy nicely you can buy the same OEM part from a dealer that sells online and it includes free shipping--if so. I bought a case of oil filters that way for a WRX I once had at a Sonic dealer and other parts for a GTI I once owned at a Sonic VW dealer across the street. The VW dealer set up an account name for me and told me to use it when I needed parts. I got OEM parts as cheap as I would have online.

I tired this as my local VW dealership but was declined. "the price is the price, i dont have control over that sorry". Sadly these were like random bolts and gaskets we needed TODAY because more things broke. I think it was like $21 local but $9 online per part


But at a BMW dealerships, we had nice guy, i think it was wheel bearing hub bolts, needed 2. Price was like $15 or so. He looked at that with huge disbelief. And was like hold on, he went to asked a few techs for spare bolts, none had any. He gave me his employee discount on it. Came out to like $6.

Its weird. I get everyone has to make money but why make so much MORE money. If part cost $5, and you sell it for $15. Sure why not. But why sell it to $15 to online people and $25 to the person right in front of you.

 

[PandaBear]

I was told by the dealer's counter lady that if I order online I can get a 20% discount, even if I order now and she process the order now. So I did in front of her, and she pick up the order in 3 mins, and then hand it to me.

Then I have another part where the calibration between 2 model is different due to weight and center of gravity, and they double the price of one instead of the other because of production volume difference (Prius vs Prius V, same mechanical but different brake power distribution and calibration, $800 vs $1600), by the manufacturer just to gouge us.

In the end it is all about having competition to keep these guys in their places. With monopoly you are going to pay an arm and a leg. I am waiting for the day when Denso, Aisin, Dorman etc start making them for aftermarket to keep OEM honest.

 

[dogememe]

I've bought a few parts at the local Chevy dealer. If you go in and ask for pricing and availability at the parts counter they're going to charge you an insane price. If you just go on the GM parts website and select that dealer as where you want to pick it up, you'll pay MSRP which has actually been reasonable for the last few things I've got. Then you just pick it up there. Or go in there and show them their own online price and they'll match it, albeit with a lousy attitude.

 

[97K15004WD]

Customers buy based on three things. Quality, Price, Speed of Delivery. Simple business school stuff I learned decades ago. It's still the same, the only difference is it's transparent now.

30 years ago, you didn't know the price was substantially better for others compared to you. Now you do, and it's upsetting. Understandable, but that's the way it is.

Parts counters will charge a retail customer standing in front of them the highest price allowed by law because it is assumed you are there because you need it NOW (speed of delivery). If you had time to order it you would have.