Suggested retail price for parts

Discussion in 'Lawn Mowing' started by DFW Area Landscaper, Feb 22, 2007.

  1. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    Do the dealers get a suggested retail price for parts from manufacturers such as Honda, Stihl, etc or do the manufacturers only provide their dealers with wholesale prices and is totally up to the dealers as to how to mark them up?

    Thanks in advance for any information.

    DFW Area Landscaper
  2. J&R Landscaping

    J&R Landscaping LawnSite Fanatic
    Posts: 5,096

    For most brands, dealers are given an MSRP price but they have the choice as to what the final price is.
  3. MikeLT1Z28

    MikeLT1Z28 LawnSite Bronze Member
    Posts: 1,732

    yep, the dealer sets the price usually. i guess their price is set by the amount of volume they do. i called two different dealers today about a part and got two prices, about $6 difference.
  4. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    I had a local dealer promise me a 20% discount off the MSRP for parts because he had noticed I hadn't bought parts from him in several months...he wanted to win my business back. Lately, I have been buying everything from

    So today, I walk in there, pick up a small box of Honda & Stihl parts and they ring me up for $833.63. A few of the parts I had previously bought from Mowpart and his price, even with the 20% discount, was still an average of 23% more than

    I know it doesn't sound like much, but when you are ordering enough parts to rebuild 12 machines, it adds up.

    I called the Stihl distributor for Texas and they confirmed the MSRP on one of the parts I bought. The local dealer charged me 15% more than the MSRP on some throttle cables that I picked up this morning.

    So then I called Honda. I am beginning to HATE Honda. Those idiots told me to call their dealers if I wanted to verify parts prices.

    When a dealer hands a widget over the counter and tells you it'll be $XX.xx you have absolutely no way of knowing if it's a fair price for the widget or not.

    I guess these manufacturers want to protect their dealers. But at the same time, they have no problem telling us, their ultimate customers, to call other dealers and pretend we're going to buy a part, waste their time and ours, when in reality, we have no intention of buying from them if the dealer we are currently using is being honest.

    I'm madder than heck right now.

    I mean, none of the dealers actually stock these parts. We have to wait for them to be ordered with all of these dealers.

    It would be SO EASY for the manufacturers to create a website where they would list all their parts by number and the MSRP on each. But they won't do it.

    DFW Area Landscaper
  5. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    I'll tell you this: If any manufacturer ever does create a website and lists all the MSRP's of their part numbers, they're sure going to have my attention.

    DFW Area Landscaper
  6. J&R Landscaping

    J&R Landscaping LawnSite Fanatic
    Posts: 5,096

    I'm not buying a ton of parts but 15% over MSRP don't sound to bad to me. Some of my dealers lines are 10% or 15%, some are 20% and a few of his premium lines are 25% so e says anyway.
  7. OMG

    OMG LawnSite Senior Member
    Posts: 275

    Would you pay 15% over MSRP for a new truck?

    If not, what's the difference?
  8. Armadillolawncare

    Armadillolawncare LawnSite Senior Member
    Posts: 570

    I think you have MSRP and dealer cost mixed up.
    Dealer cost is exactly that, the cost for the dealer to purchase it. If he turns around and sells it for his cost then he makes no money. Actually he would lose money.
    MSRP is Manufacturers Suggested Retail Price. This price is a price above dealer cost that the manufacturer has deemed a fair mark up. If you read each word you'll notice that it says SUGGESTED. That means the manufacturer suggests that this is the price it be sold at but ultimately the dealer can sell for what he wants.
    If a dealer is smart and wants to make money then he charges the highest price or has the highest mark up on the items most in demand and hardest to find. So if I was a dealer and I had a widget that I knew was difficult to find, and a lot of customers wanted, then I would charge more for it. That is the rule of supply and demand. Heck don't blame a dealer for charging what you are willing to pay. We do the same thing to our customers. We charge what we think we can get. If our prices are to high and we begin losing business we have to change something.
    Now as far as an internet store like Mowpart, they do have low prices but they also may not have all the overhead expenses that a brick and mortar store has so they are able to charge less. But as we all know, the lowest price isn't necessarily the best deal. What if you have a problem with an item you purchase from Mowpart, what do you have to do? Send it back and wait for another, which can be a PITA. If you buy from you local brick and mortar dealer you can actually see and touch the part before you pay for it. Heck you can probably even ask questions about it and get some tips if needed to install or use it. What if you find out it doesn't fit or work as promised? Well heck just turn around and take it back to the dealer which in my opinion is easier the have to wrap, pack and mail a part or item back. That is just good customer service and it comes with a price. That is part of the reason your dealer may be more expensive then an internet store.
    I am always amazed by the other LCOs on here that gripe that their dealer is overcharging on stuff. That a 20% markup is way to high and should be much lower. Did you know that when you buy a Nike t shirt at your local sporting goods store the markup is usually somewhere around 100%? In retail if your not selling at least at a 40% markup you probably won't be able to stay in business? Well enough on this, let me step down off my soap box. I have over 15 years in retail management so it is easy to get me started on this kind of thing. Thanks for listening.
  9. tallimeca

    tallimeca LawnSite Bronze Member
    Posts: 1,229

    The difference is you aren't paying 50k for an air filter. Bad comparrison. Plus, the mark up percentage is completely different as well.

    Dealer make on average 40 percent on parts, and 15 percent on equipment. That's on paper.

    How much do they charge you when you walk up to the counter to buy a spindle and say you are having trouble getting the pulley off and they spend 10 minutes telling you how to do it?

    Most LCO's know dealers are trying to make a living just like them. But there are some guys that don't understand that dealers aren't there to supply them at cost so they can make more profit. Any good buisnesman knows to pass the cost on to the customer. Rent at the dealership went up, parts get marked up 5 percent.

    Cost of maintaining equipment for a LCO went up........hourley rate or flat rates custs go up a percentage.

    Dealers have to sell an awfull lot of filters and oil filters to cover overhead of rent, insurance, vehicle payments for pickup/delivery, wages, sales tax, floor plan interest on equipment, delivery charges for parts and equipment, electricity, water and sewer, heat, advertising, shop supplies, uniforms, web hosting, excise tax, workman's comp, health insurance for employees, tools, fixtures...........and that's off the top of my head.

    If only dealers could drive around with their shop in the back of a van and their sales and parts department on the back of a trailor..........................

    Suggested retail price is simply dealer cost x markup percentage on that part. Most manufacturers have discount codes. Anotherwords small parts, the percentage is higher then if I were to order in an Engine.

    Look at it like this.

    You buy mulch for 32 dollars a yard. You get a commercial discount of 20 percent. So because you got a discount, you are going to sell that mulch to your customer at 32 dollars a yard? No.

    You are gonna get 40 a yard, then charge 30 bucks an hour to spread it.

    Everyone is in buisness to make money, not for a hobby or the practice.

    The price is the price. Pay it or look for it somewhere else untill you find it for what you want to pay.

    But time is money.
  10. newz7151

    newz7151 LawnSite Silver Member
    from Tejas
    Posts: 2,419

    I would also like the original poster DFW to post the part numbers from the parts that he bought at the dealer for $800 something dollars and then post the part numbers of the exact same parts he is ordering from .

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