Markup On Parts [Archive] - Snowmobile World : Your #1 Snowmobile Forum

: Markup On Parts


spider
01-24-2003, 12:47 PM
I've been trying to find a bearing for my crank, the problem is that the case is to small for the bearing.

I called around to a few places and found a company that makes bearings to the specs you supply. They make crank bearing for many engines.

I supplied the specs 40X62X30. The cost of this bearing from Arctic Cat is $196.00 cnd. The price of the bearing from the manufacturer is $7.45.

Someones making money!!!

tegs
01-24-2003, 12:50 PM
I makes me sick how much parts are! We pay enough for these sleds when we buy them. I think we should get a break on the parts. I'm not saying that they shouldn't make any money on them, but at least be reasonable. Keep on dreaming I know!

Downriver Thunder
01-24-2003, 12:50 PM
It's just like going to the dealer for a car part, the same thing at the store is half the money.

spider
01-24-2003, 01:03 PM
I'll let you guy's know how this bearing works out.

If it's ok, I'll provide the name of the maunfacturer.

catrules2000
01-24-2003, 01:04 PM
I worked for our Local Cat/Doo Dealer Part time for a while and got to see first hand what kind of Mark Ups are on the sleds. Don't #### and moan about your dealer raping you on the sled price as the mark up on them is not all that good. Think about it, why do you think the big Dealers who have the huge "Superstore" offer such good sled prices, they want you in the door to buy the accessories which they make a ton more money on! Just my .02

spider
01-24-2003, 01:07 PM
I know the dealer dosn't make alot on the sled itself, and they don't make alot on parts, but someone does.

Where does the dealer buy there parts?

QUEBEC#1
01-24-2003, 01:50 PM
its very true the markup on parts is way up their! when my water belt went the other day on my 2000 xc 700 i went to the dealer it cost me 55 + TAX CAN, AND A DIRVE BELT AT 90$, I CALLED ANOTHER DEALER AND GOT THE DRIVE BELT FOR 75$ AND THE WATER BELT WAS 50$, I FREAKED OUT WHEN MY FRIEND SHOWED ME A COMPANY THAT MAKES WATER BELTS FOR ONLY 15 BUCKS!

LB700
01-24-2003, 02:02 PM
Two things.....

Bearings/belts, etc, are NOT all created equal -- there is a HUGE difference in quality, even if the specs are the same. Be -ware!

Second....

Parts go through a lot of hands before they get to you.

The manufacuter - they don't actually make too much profit on each part, but they deal with volume.

The distributor -- add 40% markup (they need this much to survive, believe it or not).

The dealer -- add 30 to 40% markup, or up to 100% on things like clothing - they ALSO need this much to survive. You don't see too many dealers who are driving Rolls Royce's (support your local dealer!)

Sometimes, there are secondary distributors who also have to make a margin on everything they sell.

So, the part that costs peanuts for the actual production cost, costs you a LOT of money by the time it gets to you. That's the way the economy works.

vapourtrail
01-24-2003, 04:26 PM
wow LB, that's what my dealer told me almost word for word.i thought he was jivin' me.i guess i owe him an apology............. :doh:

LB700
01-25-2003, 12:56 PM
Actually, there is no law that says that the manufacuturer can set a price that the dealer charges you for anything -- it's up to them what they use as a mark-up.

MSRP is just that -- Manufacuturers SUGGESTED Retail Price.

They can sell stuff for whatever price they think is fair.

TallCool1
01-25-2003, 01:50 PM
Originally posted by LB700@Jan 25 2003, 11:56 AM
Actually, there is no law that says that the manufacuturer can set a price that the dealer charges you for anything -- it's up to them what they use as a mark-up.

MSRP is just that -- Manufacuturers SUGGESTED Retail Price.

They can sell stuff for whatever price they think is fair.
This is true. Only on very rare occasions can a vendor (usually an agreement that the dealer has accepted) set the actual price of an item...this is usually done to protect the image of a product or dealer's territory.

Those dealers have a right to make hay while the sun's shining. I have no problem paying a dealer normal retail prices for parts, as long as I get a deal on the sled, and their customer service is up to par. If you ever think they're making too much money, just ask a dealer if you can see how much inventory (parts AND sleds) he has carried over from the previous year(s)...carrying that inventory costs them money. And, like the car business, usually the dealer has the lowest profit margin in the chain.

These poor guys (the good sled dealers) have to depend on the weather for crying outloud for their livelihood...I'd hate to have to do that. As we know, it's not been too fair to the midwest dealers for the last few seasons. I usually find that if you treat the dealer decently when needing parts, they tend to give you a break anyway. It's the guys that belly up to the counter demanding a discount that makes the dealers not want to cooperate with the customer, and I can't blame them for that. Like when I needed my parts last week...I was prepared for the worst, and got the best as far as I'm concerned...they dropped what they were doing to help me and didn't charge an arm and a leg. They have my business for life. I also know of a dealer that still tries to charge retail for 1 and 2 year old leftover sleds...obviously I haven't bought one sled from him yet, allthough I try everytime I buy one.

PowderBoy
01-25-2003, 05:27 PM
Trailer parts are just as bad.... my local triton dealer was highly uncooperative in locating me those square nuts that the tie down bars bolt into.... so i called triton direct... they sent me 3 of these for 5 bucks..... how about this.. the dealer wanted 15 a piece for them... thats some extreme mark up for a piece of aluminum and clip

TallCool1
01-25-2003, 05:34 PM
Have to agree with ya there PB...I think boat shops are the worst. Was looking for a spare fatty Carlisle tire and rim for my snowmo trailer a couple years ago. I went to the local boat shop and they wanted $95 for it....went to mom and pop type trailer shop...$60 for the same exact thing.

vapourtrail
01-25-2003, 05:43 PM
so why is it that my dealer can drop the price of a sled by a grand,then give me 15% off on all my clothing if he's just getting by..................strange ???

PowderBoy
01-25-2003, 06:17 PM
I can buy two 31'' Dunlops for $95.... its all just so nuts.... Heres what the price guide really looks like to that guy sitting behind the counter
18.5x8 spare for utility trailer-------------- $50.00
18.5x8 spare for snowmobile trailer------ $90.00
18.5x8 spare for boat trailer--------------- $100.00
18.5x8 spare for people who have
nothing better to do with their money--- $120.00


all the same tire discounted approprietly for the crowd whos purchasing it... just my .02 cents

konkinj
01-25-2003, 10:26 PM
Originally posted by LB700@Jan 24 2003, 01:02 PM
Two things.....

Bearings/belts, etc, are NOT all created equal -- there is a HUGE difference in quality, even if the specs are the same. Be -ware!

Second....

Parts go through a lot of hands before they get to you.

The manufacuter - they don't actually make too much profit on each part, but they deal with volume.

The distributor -- add 40% markup (they need this much to survive, believe it or not).

The dealer -- add 30 to 40% markup, or up to 100% on things like clothing - they ALSO need this much to survive. You don't see too many dealers who are driving Rolls Royce's (support your local dealer!)

Sometimes, there are secondary distributors who also have to make a margin on everything they sell.

So, the part that costs peanuts for the actual production cost, costs you a LOT of money by the time it gets to you. That's the way the economy works.
LB --- two things
First - the manufacturers often are not using the top level of bearing or belt in their product in the first place either.

Second - (and I stake whatever credibility I have with you guys on this) the manufacturer takes more profit than anyone else in the distribution chain on the sale of parts. This profit is higher the more "captive" the individual part is. Margins on some parts will probably shock you.
(I'm very well aquainted with this type of business)

ger
01-25-2003, 11:00 PM
I just got 3 plugs for my srx at the dealer they wanted $11 and change ( each)
I said I could getthem at Royal dis. for $7.49 they matched it . I heard him on the phone to the manager and the three prices he said was 1$11.45 then $7.49 then $5.11, I am going to assume that the $5 is cost.

That irks me they do not need to make that much on me

Royal survives on $7.49 why can't the place that I but my sled from?

They matched it for me but the next guy in pays full pop unless he knows to ask :angry:

BearCat2003
01-26-2003, 05:09 AM
That irks me they do not need to make that much on me
Royal has a large market to deal with.they rely on quantity.Your local dealer relies on you,and a few more who maybe don't shop around.
It certainly pays to shop and haggle.
Don't blame the dealers because there are people willing to pay inflated prices!

800MXZ
01-26-2003, 08:12 AM
$196 for a crank bearing? WOW Crank bearings for my 809 were $30 a piece. Sounds like there might be a mix up.

cooley
01-26-2003, 08:20 AM
Originally posted by BearCat2003@Jan 26 2003, 06:09 AM
That irks me they do not need to make that much on me
Royal has a large market to deal with.they rely on quantity.Your local dealer relies on you,and a few more who maybe don't shop around.
It certainly pays to shop and haggle.
Don't blame the dealers because there are people willing to pay inflated prices!
well if they dropped there prices a little then people wouldn't have to use royal distributing or any other after market store. why pay more when you can pay less somewhere else. ;) it cost me $35 dollars for 2 plugs for my sled at my dealer and it would have cost $18 dollars at canadian tire(they would have to order them in though). and most dealers make there money repair the things they sell...............i know my dealers yard it always full of toys waitng to be fixed

Little green sixer
01-26-2003, 08:32 AM
Hey spider why did you have to replace your crank bearing/ And how did you know you had to change it, what signs did you notice to tell you that it needed replacing?

slarson
01-26-2003, 11:06 AM
These people are in business to make money, if you do not like the prices they charge, go somewhere else, or open up your own business. If you lower you prices 10% you have to sell 30% more product to make the same $$$$, what would you rather do, one job for $100 profit, or three of that same job for $100?......mail order companies sell at discounts because that is the only real attraction to buy from them, if local dealers were always the same price, mail order companies could not generate enough businees to survive.

spider
01-27-2003, 08:44 AM
"$196 for a crank bearing? WOW Crank bearings for my 809 were $30 a piece. Sounds like there might be a mix up. "

Yeah, $196 for the PTO end bearing. You can check it yourself:

http://www.brownsleisureworld.com/Parts/SN...DCRANKSHAFT.htm (http://www.brownsleisureworld.com/Parts/SNOWMOBILE/1992/1992WILDCAT(0650-193-1992)/PISTONANDCRANKSHAFT.htm)

It should be more like $30. It's only a roller bearing.


The reason I need to replace it is because I have a 700 wildcat crank (new) and a 650 crankcase. I need a bearing that's 2mm smaller on the PTO end. Everything else is fine.