Replacement parts: The right way

[dcarrb]

I have one of those old-fashioned push-reel mowers that gets (and gives) quite a workout at my place. Recently the blades began disengaging from the drive mechanism as the mower moved forward, so I phoned the manufacturer, American Lawn Mower Company, toll-free, to order some parts:

(4) ratchet pawls @ $.55 each
(2) wheel retainer snap rings @ $.55 each

Order total: $3.30.

I prepared to give the woman who took the order my credit card info and she countered that she'd simply have a bill enclosed in the package. (I joked that I expected such consideration in view of the enormous order I'd just given her employer.) The goods arrived about a week later via first class mail, with a net-30 invoice enclosed. Three dollars and thirty cents; they didn't even charge for the shipping. Now figure, with the cost of the parts, the zip-lock bag which contained them and the padded mailer they used, the postage, the time it took to fill someone to fill the order, and the administrative costs associated with cutting the invoice, American Lawn Mower Company had to have taken a net loss on this insignificant little transaction.

Talk about service after the sale! Nothing says "thank you for buying our product" like giving customers a break rather than squeezing a buck out of them at every turn. Imagine if we could buy auto parts this way.

dcb

[Mr. Pockets]

That is an excellent story. Thanks for sharing.

[ensteele]

Thanks for sharing. I now feel much worse than I did before after ordering a few parts that came to a total of $165.00 which I could hold in my hand at the same time.

[Beav]

Originally Posted by ensteele

Thanks for sharing. I now feel much worse than I did before after ordering a few parts that came to a total of $165.00 which I could hold in my hand at the same time.

Like 20 little washers for the rocker covers, that cost $45?

It seems to me that the OEMs have decided to make better cars and just charge the beejeezus outta us on replacement parts in order to spur new car sales. Do people really think parts actually cost as much as they charge? I recall a meeting with a Delco rep in the '70s (O.K., I'm giving away my age - it really isn't a secret anyway.) He was talking about the manufacturing cost of their new shock absorber line. At that time their replacement shocks cost them in the neighborhood of 37¢ each to manufacture. He estimated that it cost Koni less than 75¢ to make their shocks. Given that was a few days ago, let's just grab a number and say they now cost them $10 each.... When are people going to quit accepting a hose job as a reasonable price?

This soapbox is pretty tall, I better quit before I fall off and hurt myself.

[dcarrb]

I was most impressed by the fact that they didn't require up-front payment nor hit me with a minimum shipping and "handling" charge. Had I ordered, say, a wheel for my mower -- a chunk of cast iron that weighs about ten pounds -- rather than a few bits of common hardware, I imagine they would have shipped by some means other than U.S. Mail and charged accordingly, and they probably would have expected prepayment. Regardless, the consideration they afforded me in this instance is a model I'd sure like to see other manufacturers emulate. It's not often that I write a check and feel that the recipient is getting the short end of the deal.

dcb

I'll throw in a few pennies.


Car companies make very little money on new cars. People have no problem paying outrages prices on severly overpriced "designer" clothes, jewelry...heck, even "gourmet" water and coffee. But they'll be damned to spend a dime over dealer invoice on a new car! So, car manufacturers look elsewhere for profit. The less they make on cars, the more they have to make on parts. That's the way I see it anyway.

I said it before and I'll say it again: how did it happen that people decided just how much profit a dealership can make on a new car? Why is that everyone feels the need to be able to buy a car at barely above cost? How come that doesn't apply to other industries? How come I can't argue with Wal Mart over the cost of my watch? "29.95! That's outrageous! What's your cost on that? I'll pay you 2% over and not a penny more or I'll walk away!!"
Why can't I haggle the price of gas? What makes a Victoria Secrets bra worth $50? I have whole outfits that cost less. And why does it cost almost $10 to see a movie? Surely there are some unsold seats somewhere in that theater when the movie starts, so why not sell me one for $1? I mean they were going to be empty anyway, so why not? Why is a grande caramel macchiato $4.75 at the local Starbucks? Surely there is no more than .50 cents worth of ingrediants in there. Why won't they sell me one for .50 cents? Heck, I'll even "allow" them to make a profit...I'll give them .75 cents!


Dave

[dcarrb]

Dave, I'm sorry. Seems I'm always stepping on your toes, and that's not my intention. I understand your point, even if my own perspective occasionally differs.

I also understand that any manufacturing concern won't last long giving away stuff. They have to make a profit. But when it comes to reatil auto sales, unfortunately, I think the industry bears much of the blame for its reputation, and for the unpleasant practice of haggling over price. Frankly, John and Jane Doe figure they're getting screwed if they pay full dealer price. (Who doesn't have a car dealer horror story to relate?) Why they'd merrily pay a buck for a bottle of Jersey tap water remains a puzzle.

Getting back to replacement parts, again, my point wasn't that the parts in this particular example cost only $3.30. Rather, it was the way this business treated me. Toll-free number for ordering. Billing me instead of taking a credit card number. Not charging for shipping. I mean, had I ordered some $3.30 part from AutoPartsintheSky.com, at the minimum I would have taken a $7.95 hit for freight. IMHO, the replacement OEM auto parts retailing structure is antiquated and in need of a dramatic overhaul, but that's a rant for another day. But you bet, it would be mighty cool to phone Subaru on their dime (or you, a Subaru parts retailer) and have my little order shipped promptly and at no added cost.

In short, make me feel that my business is appreciated and I'm much less likely to carp about the price, and more likely to be a repeat customer.

dcb

[SubaSteevo]

Originally Posted by red95svx

I'll throw in a few pennies.


Car companies make very little money on new cars. People have no problem paying outrages prices on severly overpriced "designer" clothes, jewelry...heck, even "gourmet" water and coffee. But they'll be damned to spend a dime over dealer invoice on a new car! So, car manufacturers look elsewhere for profit. The less they make on cars, the more they have to make on parts. That's the way I see it anyway.

I said it before and I'll say it again: how did it happen that people decided just how much profit a dealership can make on a new car? Why is that everyone feels the need to be able to buy a car at barely above cost? How come that doesn't apply to other industries? How come I can't argue with Wal Mart over the cost of my watch? "29.95! That's outrageous! What's your cost on that? I'll pay you 2% over and not a penny more or I'll walk away!!"
Why can't I haggle the price of gas? What makes a Victoria Secrets bra worth $50? I have whole outfits that cost less. And why does it cost almost $10 to see a movie? Surely there are some unsold seats somewhere in that theater when the movie starts, so why not sell me one for $1? I mean they were going to be empty anyway, so why not? Why is a grande caramel macchiato $4.75 at the local Starbucks? Surely there is no more than .50 cents worth of ingrediants in there. Why won't they sell me one for .50 cents? Heck, I'll even "allow" them to make a profit...I'll give them .75 cents!


Dave

It's all relative. A car costs a lot more than a cup of coffee, so people need to get the most out of their money. When you buy a house most people will offer a price lower than the asking price, usually by several thousands of dollars.

Movie ticket prices are outrageous, don't even get me started on them...

My main gripe is food/drinks at entertainment venues. If I'm paying $50+ to see some performer, don't try to charge me $4 for a bottle of water.

Originally Posted by dcarrb

Dave, I'm sorry. Seems I'm always stepping on your toes, and that's not my intention. I understand your point, even if my own perspective occasionally differs.

No offense taken. I actually didn't think about it until you mentioned it
I just get bugged by certain things...probably because I hear the complaints all day long. I feel the same way. Certain parts are way too expensive (are Subaru MAF sensors made of gold??). I agree. I always try to cut people slack when I can. Sometimes people want more than a little slack. Just recently some guy I had never seen before told me I should give him a new knob for his stereo. I asked if he was a regular customer. He was not. Did he just buy the car from us? Nope. Any recent services done on his car by us? No. I offered a discount...it wasn't good enough. He felt it was such a cheap part that I should just give it to him. To this day I'm baffled by that experience. It just bugs me that some people moan and groan about spending $6 on an oil filter while they are standing there in their $120 Nikes drinking a $5 cup of coffee and sending an email on their $600 hand held computer ......of course, those things are necessary...its clean oil that is optional



Dave

Originally Posted by BurgundyBeast

My main gripe is food/drinks at entertainment venues. If I'm paying $50+ to see some performer, don't try to charge me $4 for a bottle of water.

I hear ya! I went to a comedy show last year. We paid somewhere around $20 per person for tickets to the show. We sit down and are promptly told that there was a $4 minimum food/drink charge for each person. What?? We PAID to get into the show, why are we now forced to pay even more just to continue being there!!?? Talk about hidden fees!!


Dave

[dcarrb]

Originally Posted by Beav

Like 20 little washers for the rocker covers, that cost $45?

It seems to me that the OEMs have decided to make better cars and just charge the beejeezus outta us on replacement parts in order to spur new car sales.

Cynic that I am, I've always suspected that dealer parts and service rates are set at least in part by this rationale, and that it's a delicate balance. They don't want to chase-off parts and service customers, but they WOULD prefer that parts and service customers buy new cars. There's little doubt in my mind that my SVX became available because the previous owner got a look at the dealer's parts and service estimate and asked, "How much per month for that WRX over there?"

dcb

[mohrds]

Originally Posted by dcarrb

Cynic that I am, I've always suspected that dealer parts and service rates are set at least in part by this rationale, and that it's a delicate balance. They don't want to chase-off parts and service customers, but they WOULD prefer that parts and service customers buy new cars. There's little doubt in my mind that my SVX became available because the previous owner got a look at the dealer's parts and service estimate and asked, "How much per month for that WRX over there?"

dcb

I think its more of an attitude that most (not all and especially not Dave!) parts counters have that retail customers are a nuisance. They are, I'll be the first to admit it, but its part of the job to deal with it. I know it sucks looking up parts or trying to figure out what something is when a guy grabs it out of his pocket and its in 5 pieces.

For many years (and still today) most dealer parts counter would charge double or even triple retail to walk in people. I remember a time when I stopped in at a parts counter and they quoted me some outrageous price (like $350) for a piece of trim, then I faxed over an order from the body shop I worked at and with our 30% off of retail cost it came out to about $100. Even with my limited math skills, I know the counter guy was screwing me.

There are many places that have bad customer service reputations, phone companies, Motor vehicle registration, any large city's municipal office, etc.

Doug

[Beav]

Darrell, I understood what your original intention was. You received superlative service from them and they deserve to be recognized and commended.

Dave, I understand your point and frustration. I'm not saying that they don't deserve to make a profit. However there is an old saying that goes "You can shear a sheep many times but you can only slaughter it once." A number of years ago an industry rag released some info gleaned from a Chrysler exec who stated that the Cherokee, at that time, cost approximately $6000 to build when it was commonly selling for $20,000+.

There are only two people that know the true 'invoice' of a new car - the factory and the dealer himself. That invoice price doesn't reflect additional costs such as the floor plan and insurance, etc. no more than it reflects what the dealer's actual purchase price was. To believe otherwise is just plain naive. How does a dealer with a crappy service and parts reputation continue to stay in business for years and years, relying only on sales?

There used to be a routinely published figure, I believe from State Farm, that reported the average cost of a new car vs. the price of its individual parts as reported by the factory's published parts catalogs. If I recall correctly the car 'built' from individual parts would 4-5 times more expensive than the same car's MSRP. Considering the MSRP already reflected a profit on each part (consider the expense of installation a fair swap for the cost of packaging) plus marketing expenses why would the individual parts cost so much more? A dealer needs to charge 400-500% to cover overhead and a reasonable profit in the parts department?

However, my real issue is that people keep lining up to be 'slaughtered'.

[UberRoo]

Originally Posted by BurgundyBeast

Movie ticket prices are outrageous, don't even get me started on them...

I'm sure this varies with other entertainment venues, but movie theatres make very little on the movies. The majority of their profits comes from the concessions. I don't know how large the margins are - after all, prices vary - but most of your ticket money goes straight to Hollywood. Most of those actors who make millions of dollars per movie started doing acting as a loss. They'd take a day off work to get paid $50 as an extra. I'm sure they'd settle for less. ...after a lot of whining and complaining of course. Come to think of it, professional athletes fall into the same group. For every professional who make a million bucks a year, there's a thousand guys who pay money to join a local league. I don't pay money to watch professional sports and I don't watch movies at theatres. If people really felt strongly about it, they wouldn't either. If enough people really cared, it would reflect in the profits of Hollywood and professional athletes.

Anyway, back to the original post. I've also had a few manufacturers who were really great about supporting their products. I've called toll-free numbers and had parts mailed to me at zero-cost. ...more than once! The other day I bought a transfer housing gasket for my SVX from the dealer. It was $4. I don't think I could buy a raw gasket sheet for less, not to mention the expense of time for me to cut it out. ...and from a Subaru dealership nonetheless!

Originally Posted by Beav

Darrell, I understood what your original intention was. You received superlative service from them and they deserve to be recognized and commended.

Yes, they should. Darrell's experience certainly was great, and it's nice to see that there are people out there willing to go the extra mile.



Dave