Ridiculous price quotes on accessories you got from dealers
01-07-12, 09:48 AM
#16
Merkur Fanatic
01-07-12, 01:43 PM
#19
I went to check the prices for a few f-sport parts a while back at my dealership and asked them if they price match- they said that they will not match Sewell because the cost of the parts to them is At or more than Sewell is selling them for
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01-07-12, 01:56 PM
#20
You should have asked just to see the look on their faces
I went to check the prices for a few f-sport parts a while back at my dealership and asked them if they price match- they said that they will not match Sewell because the cost of the parts to them is At or more than Sewell is selling them for.
I went to check the prices for a few f-sport parts a while back at my dealership and asked them if they price match- they said that they will not match Sewell because the cost of the parts to them is At or more than Sewell is selling them for
.
01-07-12, 03:34 PM
#21
Lexus Test Driver
I haven't priced any accessories at my local dealer, but can tell you that they are ridiculously high. I had to replace the clips that hold the rear wheel mud flap in place. Sewell's "store" price was $6.50 each. Online was less, and with the CL discount they cost me just over $4.00 each. I called the dealer here and was told that they would cost me $8.52 each. They also wanted significantly more for spark plugs, belt and hoses, and the exhaust flange gasket for the mid-pipe. I told them each time that I could get the same parts from Sewell for nearly half the price, and their reply was "I bet you can". No more calls to my local dealer......
01-07-12, 04:56 PM
#22
Lexus Test Driver
I didn't even bother asking my dealer, knowing it would be rediculous.
As far as purchasing accessories, some price match Sewell. I got my springs and trunk spoiler from Westminster and it was cheap in my opinion.
Question: What yields more money to a dealership?
A) Selling parts and service at a super high price and getting only a few willing customers?
B) Selling parts and labor at a low price, yielding lower profit, but higher volume of customers?
I'm think it must be "A", since that's the model most dealers seem to stick with. Or perhaps it's all done on purpose (A) in order to curb the amount of people doing customization to their cars- all of which may create a higher volume of problems and hassles with warranty and servicing issues, ultimately causing a loss of money (?).
As far as purchasing accessories, some price match Sewell. I got my springs and trunk spoiler from Westminster and it was cheap in my opinion.
Question: What yields more money to a dealership?
A) Selling parts and service at a super high price and getting only a few willing customers?
B) Selling parts and labor at a low price, yielding lower profit, but higher volume of customers?
I'm think it must be "A", since that's the model most dealers seem to stick with. Or perhaps it's all done on purpose (A) in order to curb the amount of people doing customization to their cars- all of which may create a higher volume of problems and hassles with warranty and servicing issues, ultimately causing a loss of money (?).
01-07-12, 06:28 PM
#24
I didn't even bother asking my dealer, knowing it would be rediculous.
As far as purchasing accessories, some price match Sewell. I got my springs and trunk spoiler from Westminster and it was cheap in my opinion.
Question: What yields more money to a dealership?
A) Selling parts and service at a super high price and getting only a few willing customers?
B) Selling parts and labor at a low price, yielding lower profit, but higher volume of customers?
I'm think it must be "A", since that's the model most dealers seem to stick with. Or perhaps it's all done on purpose (A) in order to curb the amount of people doing customization to their cars- all of which may create a higher volume of problems and hassles with warranty and servicing issues, ultimately causing a loss of money (?).
As far as purchasing accessories, some price match Sewell. I got my springs and trunk spoiler from Westminster and it was cheap in my opinion.
Question: What yields more money to a dealership?
A) Selling parts and service at a super high price and getting only a few willing customers?
B) Selling parts and labor at a low price, yielding lower profit, but higher volume of customers?
I'm think it must be "A", since that's the model most dealers seem to stick with. Or perhaps it's all done on purpose (A) in order to curb the amount of people doing customization to their cars- all of which may create a higher volume of problems and hassles with warranty and servicing issues, ultimately causing a loss of money (?).
And much like their nav system, they haven't caught up with current technologies and trends.
I've offered to buy stuff from my local dealer several times if they price matched Sewell, even showed the service advisor once "Here is the link to the dealer in Texas where I can buy this item for $150 less than your price (the credit card transponder)... if you match the price I'll buy it from you instead" and she said they couldn't sell it any cheaper than the +150 price.
So in that case they outright refused to budge from trying to make $180 profit despite the fact I was outright explaining they could pick between making $30 profit or $0 profit. They picked $0.
Went through the same thing when I bought my extended warranty... that time the finance chick (who handles warranties apparently) insisted that not only could they not match the price, it was $200 less than THEY pay for it... I asked how that was possible since obviously this other dealership wasn't taking a $200 loss on each sale and she said she had no idea, but couldn't help me.
So when it came time for sways and my intake I didn't even bother talking to the local dealer, knowing it'd be a waste of time.
All that said, A is probably the overall winner still given the average Lexus customer is still an older person unlikely to be saavy to the stuff we can get online... that'll continue changing over time of course, but I don't think it's flipped far enough the other way yet to change their minds.
Sewell (and a couple others) can do it because they get the whole internet crowd buying from just a couple of places.... if every dealer did it they'd lose the massive volume that is making up for the much smaller profits.
01-07-12, 08:47 PM
#25
Lexus Test Driver
Large volume at a lower margin frequently equals more profit than low volume at high margin. This is how the "big box" retailers make their money. I believe that the willingness of a dealership to lower it's prices on parts or service are very much dictated by the profitability of the dealership. If the owner is making a suitable profit selling cars, how concerned are they about the sales volume of their parts department? I would imagine that this is a very minor part of a dealership's sales when you split each department into the old pie chart. Especially if they do any sort of significant sales volume. Imagine how many people come in buying "parts". Now, imagine how many of those customers you have to have, to equal the purchase of a new Lexus. Never mind the margin of either sale, just the top line sales dollars. How long would it take a Lexus parts department to generate $40,000 in sales, which is what a single new car sale would generate? They sell more than a few cars a week at your local dealership....... Unless you work in a dealership, it is all guess work and theory. Until then, I will continue to buy my replacement parts from Sewell, and my accessories from companies that I trust. I have a Lexus, but I'm not rich. If I can buy it for less, I absolutely will.
01-08-12, 02:05 AM
#28
How long would it take a Lexus parts department to generate $40,000 in sales, which is what a single new car sale would generate? They sell more than a few cars a week at your local dealership.......
01-08-12, 03:38 AM
#29
as for me...
since i work at a parts warehouse... and we are not open to the public so our price is way lower than anyone else lol...
so i dont go to the dealer to get my maintenance done... hell i pay $15 for an oil change and buy the parts myself from my workplace... total cost about $40 with everything oem...
i did ask coliseum lexus for a grx kit... and they told me it will cost around $1300 to get it installed+parts
since i work at a parts warehouse... and we are not open to the public so our price is way lower than anyone else lol...
so i dont go to the dealer to get my maintenance done... hell i pay $15 for an oil change and buy the parts myself from my workplace... total cost about $40 with everything oem...
i did ask coliseum lexus for a grx kit... and they told me it will cost around $1300 to get it installed+parts
