You want to know why everything is so expensive?

[Jimmy_Russells]

I completely agree - except what is a reasonable fee to source parts? Many shops add a lot more than a handling fee - like a 2 or 3X cost markup - for a part Napa delivered to them. Not referring to the OP - just making a general comment.

This is supposed to work on a retail and wholesale basis, especially for the common auto parts stores. If a part retails for $100, the shop should have a volume discount, depending on how much they actually buy, so they should pay maybe $80 and sell for $100. Joe off the street should not be walking into Napa and buying the same part for $80. If he is, there is a breakdown in the system and this shouldn't be held against the shop selling the part.

 

[Kira]

My auto-tech trained pal mentioned these kinds of markups with Harley-Davidson parts....almost 50 years ago.

Everyone would agree that maintaining a room full of manufacturing machines and a machinist or two standing at attention ready to make your part would be expensive, however, a company should (I know, I know) have a stock of basic, cheap-to-make parts handy.
But even in this childish example, any part would be at least a day away.

SNOTTY OBSERVATION: I'm under the impression that prices are raised today not onlt for reasons of opportunity (everybody's doing it) but everybody wants to make every penny of their lost lockdown money back and they want it fast.

 

[Vil_Riker]

SNOTTY OBSERVATION: I'm under the impression that prices are raised today not onlt for reasons of opportunity (everybody's doing it) but everybody wants to make every penny of their lost lockdown money back and they want it fast.

The money supply was increased so the equilibrium will mean prices rising to balance it, ceteris paribus.

 

[andrew_j]

I completely agree - except what is a reasonable fee to source parts? Many shops add a lot more than a handling fee - like a 2 or 3X cost markup - for a part Napa delivered to them. Not referring to the OP - just making a general comment.

Depends on part , guessing markup drops as expense rises.

 

[Exhaustgases]

Everything so expensive? Because of this. Taxes, Regulations, Pensions, Greed. Taxes and regulations are the big reason. Every company involved in the making of those parts, has to deal with taxes and regulations. The miners for the materials, the smelter that melts and forms the raw materials, then all the middle man/ persons that are in between all the sales and distribution, the manufactures in house or sub contractors, then all the transportation company's etc. etc., then comes the worse yet, the GREED TAX, that is the markup at the dealer. Mark ups seem to always be twice the cost they paid for the products, that would be 100% mark up. The GREED TAX is the worse and we all pay it everytime we buy something. Except maybe at the local Dollar store.

 

[Jimmy_Russells]

Everything so expensive? Because of this. Taxes, Regulations, Pensions, Greed. Taxes and regulations are the big reason. Every company involved in the making of those parts, has to deal with taxes and regulations. The miners for the materials, the smelter that melts and forms the raw materials, then all the middle man/ persons that are in between all the sales and distribution, the manufactures in house or sub contractors, then all the transportation company's etc. etc., then comes the worse yet, the GREED TAX, that is the markup at the dealer. Mark ups seem to always be twice the cost they paid for the products, that would be 100% mark up. The GREED TAX is the worse and we all pay it everytime we buy something. Except maybe at the local Dollar store.

There is sales tax charged on that invoice, but we get that back. Only the end user pays sales tax.

Of course for business revenue taxes you would be correct

 

[The_Eric]

Those stratospheric prices do not surprise me - have seen many such examples from various dealers.. They are like they are for a few reasons - principally 2 imo..

1) Greed. Companies are being ran by people with fancy college degrees who have maximum corporate profit in mind (I get it, we ALL have to make a buck). They may look at the little low volume spring and plug and price them so they can cover the relatively low sales volume of those p/ns (akin to paying for the whole investment with one only unit).. But in the end, it is price gouging because there is no legitimate way those parts could conceivably cost so much to anyone at any point along the supply chain. Why should I be forced (yes, forced in many cases) to pay your outrageous prices just to satiate your greedy desires? And in many cases, they have you over a barrel, so they're free to do with you as they wish. Absolutely disgusting.

2) Because people allow it to continue. Easy example (though in a different environment)- new and used car and truck prices are stupid high right now.. Why? Because people are literally tripping over each other to pay for them, even if they don't actually need them.. Houses too. I've heard tales of buyers offering 40k above asking price to get a house... Really? You have that much extra money? We keep throwing money away and sure enough someone will be there to pick it up. Stop paying ludicrous prices, then prices will fall.

Companies are increasingly treating people as cash cows to be milked - prices are steadily increasing as are profits, execs are getting wealthier, but what are we getting in return? Better service? Better products? What are we doing about it??? Not a ****ed thing, that's what.

 

[The_Eric]

I agree with you 100% on this part, there making 95% margin and decent profit.

They get away with it for the exact reasons you state - for $110 bucks you have a quality part the next day and your on the road. Wouldn't you rather have one for $110 than not at all. There is an opportunity cost. Cummins is only going to do things that make money, so if they don't make a bunch of money then they will just stop and tell you to buy a whole new pump.

And yep, we all pay in the end. Isn't the free market grand. A good friend of mine grew up in the Eastern block under communist rule. He will tell you $110 dollar springs that are available are a wonderful thing.

Sorry but saying that raping people on parts prices is okay because at least its available unlike in the Communist Eastern Bloc is a poor comparison. Neither scenario is acceptable...

Why should we accept either?

 

[CKN]

Parts are expensive right now due to availability..

 

[97prizm]

You can see the p/n and look them up. Here's a spring for sale on eBay .... for $30 ! https://www.ebay.com/itm/233746964676


Any business that buys a part and resells it will mark them up (in almost all cases). This is normal. If you pay a plumber to replace your water heater, you're paying for his/her time (labor) and the water heater. If they paid $600 for the water heater, they ain't going to charge you $600. Same thing applies for HVAC repairs and so on and so on.

No kidding. The apartment complex I worked for were getting dinged with $1000 for water heaters and installation. The water heaters jumped from 300ish to $550-600

 

[Jimmy_Russells]

Bumping this up;

Got another quote from Cummins today for a shutoff lever for the side on an injection pump.

Lever 3934020 $814.79

Nut 3934021 $6.89

Washer 3934022 $11.16

I bought the same lever through my Bosch channels for... $49