| Author |
Message |
Verell Boaen (Verell)
Member
Username: Verell
Post Number: 526
Registered: 5-2001
| | Posted on Wednesday, February 05, 2003 - 8:32 pm: | |
Rob,
re:"Which means the dealer puts a 40% "mark up" on their cost, i.e. $100 cost to dealer yields $166.67 retail price."
Sorry, I must quibble mathematics. The dealer is 'marking up' their cost by 66% to get a list with a 40% gross profit margin. (This may be a case of colloquial miss-use of the language tho.)
I'm sympathetic tho, as the final seller has a lot of hidden costs that have to come out of the gross profit (storage & display space, shipping costs, cost of sales (order processing, phone answering, etc.)
Back to the original question, I'd have to have an awfully good relationship with a Ferrari dealer before I asked them to install parts I'd bought from a 3rd party. An exception would be the case where they couldn't get a part in an acceptable amount of time, or couldn't get it at all.
I have to admit I just bent this rule tho. My winter driver Rx7 badly needed a full front brake replacement. I had the parts & was going to do the job myself. Then I realized I had a time crunch as I needed to get my 308 finished so my Son could use the lift. I called my local Chevvy dealer who has an ex-MAZDA mechanic & said I needed a favor.
Turned out to be the brake job from hell. The pad guide pins were seized in the calipers & the rotors were solidly rusted to the studs. Needless to say I'm not going to quibble about his labor bill. |
david handa (Davehanda)
Member
Username: Davehanda
Post Number: 477
Registered: 5-2001
| | Posted on Wednesday, February 05, 2003 - 8:26 pm: | |
Understood Rob, just trying to understand why some parts are drastically cheaper from Ferrari UK, than from FNA...figuring that FNA is just taking a larger mark-up, as I doubt Ferrari SPA would charge differing prices. |
Brian Keegan (4redude)
New member
Username: 4redude
Post Number: 35
Registered: 7-2002
| | Posted on Tuesday, February 04, 2003 - 12:56 pm: | |
Ferrari Spa has recently had a huge price increase across the board, in some cases up to 300%. FNA is just passing along the increases. They are at the mercy of the factory's whims as we are. If you have been watching the news, parent company Fiat is in wading in red ink, so this is one solution for a quick boost of cash flow, according to the Italian mindset. In reality, it is driving customers away from the dealer network.
People are now trying to source their own parts from aftermarket and independent suppliers. |
JRV (Jrvall)
Member
Username: Jrvall
Post Number: 795
Registered: 11-2002
| | Posted on Tuesday, February 04, 2003 - 8:08 am: | |
Personaly I don't go with the conspiracy theory either.
I see low volume, slow moving parts, that have to travel great distances and be supported by a large network. Ecomnomicaly speaking not condusive to low prices.
Aftermarket parts are by and large fast moving parts that go from Manuf. to Supplier, cutting down on travel, customs fees, taxes, and support network. |
Rob Schermerhorn (Rexrcr)
Junior Member
Username: Rexrcr
Post Number: 198
Registered: 11-2002
| | Posted on Tuesday, February 04, 2003 - 6:43 am: | |
David, I cannot say with authority that it is FNA, I am only relating one experience. I have no way of finding what Ferrari, SpA charged FNA for that one part. Yes, FNA must remain profitable, but so must the factory. I choose not to believe in a FNA "conspiracy" to fleece this market due to some perception of wealth. It's market economics in action. |
david handa (Davehanda)
Member
Username: Davehanda
Post Number: 470
Registered: 5-2001
| | Posted on Monday, February 03, 2003 - 4:15 pm: | |
Rob,
Based on pricing from Europe, and alternate sources here in the USA, I would say that we can't blame Ferrari Dealers here in the USA for the prices they charge; it's FNA, like you say. |
Rob Schermerhorn (Rexrcr)
Junior Member
Username: Rexrcr
Post Number: 195
Registered: 11-2002
| | Posted on Monday, February 03, 2003 - 10:35 am: | |
Typical Gross Profit % on Ferrari parts for the dealer averages 40%, in my experience of perusing the master parts listings. Which means the dealer puts a 40% "mark up" on their cost, i.e. $100 cost to dealer yields $166.67 retail price. However, this is only the price structure for bi-weekly slow-shipped inventory restocking orders. This is not VOR (vehicle off road) pricing, which costs the dealer more which, at their discretion, either reduces the dealer profit or increases the customer cost. The dealer also pays air freight for VOR parts orders. The dealer does not pay ground freight for major stock orders as of a couple years ago.
Believe it or not, there are many parts with less than 40% GP built into suggested list from the factory. It is then at the discretion of the dealer to make any adjustments.
IMO, any service facility is entitled to collecting suggested list price for repair work. This is an important profit area for the service department and parts department of the business, whether factory authorized or not. IMO, in most cases, it is only fair to allow the service facility provide the parts which gives them additional income. This is especially important to an independent, who may only make 10% GP on parts.
If one compares the GP% to other industries, Ferrari parts are reasonably priced, at least as far as dealer markup is concerned. Pricing from the factory is a totally different deal. F40 brake pads in 1991 cost $750 per axle set. I eventually found the OEM (Pagid) pads from an alterative source for $200 per axle set. Factory markup was unacceptable. |
Mark (Markg)
Member
Username: Markg
Post Number: 373
Registered: 2-2001
| | Posted on Monday, February 03, 2003 - 10:32 am: | |
Can't speak to Ferrari, but when I was the purchaser for an independant Foreign Parts store, our practice on normal items was cost x3 x.86= list price. i.e. cost 5.00, then x3 = 15.00 x.86= $12.90 list price (which no one paid). We clould than discount 40% for our better customers and still make enough profit to survive. On more expensive items our markup would be much less ooff of cost. |
JRV (Jrvall)
Member
Username: Jrvall
Post Number: 781
Registered: 11-2002
| | Posted on Sunday, February 02, 2003 - 12:43 pm: | |
Verell,
the maximum 'suggested' mark-up over dealer cost on most parts is 45%. Which to my understanding is a fairly standard mark-up in the auto parts biz . The general discount to shops is only 10% off dealer list.
The above numbers are certianly not chiseled in stone, however likely represent an average across the market place.
Special order/not in stock items would naturally have the cost of 1 or 2 shipping charges added on in most cases.
|
Verell Boaen (Verell)
Member
Username: Verell
Post Number: 518
Registered: 5-2001
| | Posted on Sunday, February 02, 2003 - 12:29 pm: | |
JRV,
Which are you saying:
a) 'list price' is 145% of dealer cost, or
b) 45% of 'list price' is markup?
Inquisitively, |
JRV (Jrvall)
Member
Username: Jrvall
Post Number: 779
Registered: 11-2002
| | Posted on Sunday, February 02, 2003 - 11:32 am: | |
Ferrari issues a price guide book to dealers, 'suggested' retail max's out at 45% in most cases. |
Peter Sedlak (Peters)
New member
Username: Peters
Post Number: 25
Registered: 1-2003
| | Posted on Sunday, February 02, 2003 - 10:47 am: | |
I am concerned about prices I have been quoted for parts for my 308. My local N. Cal Ferrari dealer has quoted prices on parts that I have found at allferrariparts.com at 30-60% less! (I thank FChat members for that website lead). My questions are as follows:
1)Is there no standard of markup that the part that Ferrari dealers/resellers use?
2)If I bring by car to this N.Cal service center, should I expect to get hosed on part prices inclusive in the service I am having done?
3) Would the average Ferrari service center have problems in doing the labor only work if I provide the original Ferrari parts?
I am not trying to be a cheapskate, but just prudent in watching my money for repairs.
|
|