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Posted by BobD (more from BobD) on Thu, 30 Nov 2006 09:24:10 Share Post by Email
In Reply to: Chip is a great guy, but prices are sometimes high..., Chaz, Wed, 29 Nov 2006 05:48:48
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Chip is a very small fish in this type of business.
You are suggesting that he pays the same cost for this as the $40 source.
My experiences with parts over the last 35 years show that you can usually find a source for less. If you are really hard core you figure out who manufactures the part, find out who buys the largest quantity from them, and you may have the source that pays the least for it and can use the smallest mark-up.

This complaint comes up often with our specialty suppliers of parts for vintage Saabs.

Consider that Chip may have searched to find a source for this, or had it custom made, ordered six to get a 2% discount on the wholesale cost, sold three over the last year, and on his books shows that he has almost broken even on this item, and can make some profit if he sells the last three in the next six months.

The best example of this cost comparison is in used parts.
You need a blue plastic finish washer for a door panel.The Saab specialist notes what you need, he knows that that color was only used for three years in the early '80's, he goes out to his yard, checks the cars of that vintage, finds one with the blue interior, finds three broken washers, two so cracked that they will break if used, and one good one.
Back in the shop his elapsed time is 16 minutes - he jogs back and forth, it is 34 degrees and raining - he tapes it to a piece of cardboard and puts it in an envelope. In the shop his rate is $50-$100 per hour.

How much is this plastic washer worth?



posted by 24.21.13...

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