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Choice article on car parts prices in Oz


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I've just read my October copy of Choice (I've been a subscriber since 1986  :wub: )

The cost of an "average car part" is marked up to 700% , according to the report.

 

Original and non-original parts are often the same , made by the same mfr yet the original parts cost up to 60% more (and that's just in the USA). (Suncorp source report). 

 

According to CHOICE consumer rights adviser Meredith Cridland "It's all about tying customers to the dealer for as many services as possible and getting them to buy genuine parts so they don't risk voiding the capped service agreement or the roadside assistance"

 

Hang this chart on your bedroom wall.

 

parts011.jpg

 

Whereswallylogo.jpg

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I think that is a trifle unfair because a lot of the cost of a part is the warehousing cost.  So while a factory can make it for X - the first graph point - in order to have it ready to supply to the customer when they need it - as opposed to going on backorder -  then it has to be warehoused.   Warehousing is a relatively simple calculation of article size multiple by the per-square-meter cost of a warehouse shelf.  So that's why o-rings and the like cost nothing, while paper gaskets cost many times more.  Buying big plastic parts like wheel arch liners can seem outrageous given they're just moulded plastic, but the price reflects the shipping and warehousing of said part.  Same goes for wheels.

 

There is no doubt that dealers put on a margin on parts and that the same parts can be sourced without the dealer box for cheaper - no surprise there - they also sell branded clothing at extortionate markup.  That's simply a process of capturing consumer surplus for those who are not price sensitive either cause they have got lots of money or because someone else is paying the bill.  

 

So to me there is no real surprise here except that you can save money by purchasing OEM manufacturer parts from large direct suppliers (cough 'the bird' cough) significantly cheaper than paying all the middlemen margins on the way through.  But that's a story played out in just about every bulky good in the last 20 years, from books to power tools.

 

It would have been useful to find out why Australian dealer prices are so much more than equivalent US dealer prices on many things.  But that would just start raising some uncomfortable questions about protectionism,  excessive land use and employment regulations and  all the other things that tip Australia into being a high cost country.

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Here is an interesting one. When I pulled the stock exhaust off my current 911 I found 8 of the 12 studs had been replaced with socket head cap screws. This places all the load on the head of the bolt and the cylinder head. Not good. A stud places the load evenly over the head,shank and nut. You use a crushable washer and if you’re fussy like I am with something’s, a polymorphic nut.

Anyway I digress. I went to a couple of local parts shops and came up with a blank in the studs. 8mm x 50mm 1.25 thread pitch studs are not exotic by any stretch of the imagination. Ever. I was met with contsistant sorry mate we don’t keep them in stock but we can get them in a few days. It’s a freaking basic item on any internal combustion engine. Now I wouldn’t normally call JustJames for items like this as I wouldn’t consider it a Porsche specific part but after calling into a few exhaust shops and them only having one or two floating around I decided I would give James a call. He didn’t have any either not really a great shock there as I’d bet they, like me would just pick up the phone and order them if they needed to.

Next was the bird. They had them for $2.75. Nahhh I know I’ll find some.

I gave one last place on the way to work a shot. It’s an exhaust shop I don’t normally go to because if I’m honest I don’t much like the bloke who owns the place.  Anyway he came out and asked what I needed. I told him and he walked out the back to check.

He was back a couple of minutes later with studs, correct washers and nuts. Before I could say anything he recommended the polymorphic nuts and washers as a matter of course and it would be $10. I said thanks I’ve already got the nuts but I’ll take the rest and here is a $20 for your help.

My point is here while we complain about the cost of parts to me it was worth $20 for a couple simple reasons. He is running a small business and times are tough everywhere $10 is $10. While I still don’t like the guy It would of cost me a $20 at any other place so why not give it to him. At $10 he is prolly making $2 off me but he took the time to give some (good) advice to a random bloke for no benefit to himself.  Last but not least you are not just paying for the part. You’re paying for the knowledge provided by the supplier that it’s the correct part for your vehicle, will do the job as intended. If you’re not getting that last bit from the place you’re buying stuff from you should get upset. One of the reasons supercheap are cheap is they employ sales assistants not skilled parts people.

 

 

I’m not sure if that’s a rant or not but it is food for thought about next time you consider the cost of automotive parts.

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there is a bit of difference between OEM and Factory parts though, as well as aftermarket parts suppliers

 

Take Mercedes-Benz parts for example:

* The factory part is made by Lemforder, Tested by them, Then M-B has their own thorough testing regime, it's then put in an official factory    box and sold through dealerships with their warranty and support

* The OEM part is made by Lemforder, Tested by them, put in a box and sold to distributors who provide their warranty and support

* Then there are parts that are made to a "specification" to fit an application to the lowest cost.

 

so I don't think it's as simple as Choice magazine makes it out to be in that image, But i do agree we are being overcharged within Australia

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