Garage mark up on parts

[Jagdcat]

Hi

i would appreciate any views/feedback on their experiences with regards to the mark up dealers/specialists charge on parts. Essentially, i've been quoted a 100% mark up on a retail price which doesn't include fitting and i am now concerned what else will be charged for other bits!

Ironically, I have interest in a small motorcycle maintenance operation which could not get away with that level of mark up and am now wondering if this is what you have to get used to due to the badge at the end of the bonnet?

Feedback gratefully received.

Ty

JC

[ptjs1]

JC,

Interesting question! Genuine Jaguar parts, for models that have been out of production for more than 10 years, are managed by the Jaguar Classic Parts division. They are responsible for the production, marketing and distribution of these parts. The prices are fixed and quoted on their online website. These parts are available for purchase direct from Jaguar Classic Parts or by ordering through any main Jaguar Dealer. In my experience, I can purchase such parts cheaper through my local dealer rather than buying online. My dealer seems to have some leeway on offering me discount; I can usually get 20% off the listed price. I have never heard of a main dealer marking up the price of genuine Jaguar part; indeed, I don't think they would be able to do that.

There are a couple of independent specialists who are authorised to sell genuine Jaguar parts. They procure them in the same manner from Jaguar Classic Parts and then sell on to customers. I don't know if they apply any markup to such parts (I would be surprised if they do?) but I have found previously that I have not been able to negotiate the type of discount from these independents that I can get from my main dealer.

Of course there is nothing to stop any small independent from buying a part from Jaguar, in the same way that we can, and then marking the price up to sell on to a customer. And maybe that is the thrust of your question?

There is naturally an market in non-official Jaguar parts and sometimes this is the only way to source parts that are no longer available as genuine parts. Fortunately the late XJS is fairly well supported in genuine parts but there are notable exceptions eg some Springs, Shock Absorbers, Trim parts etc. However, where a genuine Jaguar part is available, I always choose that route unless I can find a means to purchase the same part made by the original supplier through a different route. For example, I can purchase the same lambda sensors sold by Jaguar (that are made by NTK) much cheaper (30% of the price) through an alternative retailer. I have also purchased other items that were sourced by Jaguar from 3rd parties (oil coolers, auto transmission filters etc) on the same basis.

For these non-official parts, I guess there is no formal retail price and manufacturers / suppliers are free to charge what they like. The world of pattern parts is very varied with good and (sometimes very) bad examples being available. I may be somewhat cynical but I have an aversion to buying non-original components such as engine oil filters unless there is really no choice.

That is just my take on the situation. It would be interesting to hear other members views.

Paul

[Brakebuster]

Im afraid its called the real world ,

and every company and business thats trading is in it for profit ,

Even Jaguar

every item sold has a markup on it of some description , even Heritage parts , as they are in it to make profit to keep the business perpetuating , even though some items are sold of at cost or below when they need to get rid
( also , non profit means no dividend payout , any profit is ploughed back into the business )

main dealers also mark up their parts ( but not through Heritage ) , as they have to buy them in from suppliers, and when you get ' discount ' its the profit margin thats getting cut above cost , that said , they seem to be much more flexibale with their prices on an individual basis , especially face to face, i am at the point where they tell me the price, and then they tell me the price ' as its me ' as i have been buying from them for nine years or so ,

indipendant dealers/garages have to buy from somewhere, if they buy genuine, then they will mark it up to cover their own costs obtaining it etc , and to make a little profit , if they buy aftermarket, then the world is their oyster , and its up to you if you want to comply !


we have all bought items , and then seen them cheaper else where, but thats our fault for not wanting to put in the leg work to find the best deal and ask the right questions in the first place

buyer beware ( on every level )

just my thoughts

BB

[Jagdcat]

Hi everyone,

The parts in question were braided brake hoses. I was quoted north of £93 for parts that cost retail £51. It wasn't implied fitting was included so felt somewhat surprised at the mark up. Every business has to make a profit but this incident has made me question leaving the car with tis speciAlist which is a shame as I had hoped to build a working relationship.

JC

[raysearles]

I am afraid I agree with Paul; Jaguar dealers would either sell genuine Jag parts at list price, or if you have a loyalty card or a discount throught your local region with a discount of up to 30%.

I would be very very unhappy at paying a mark up on retail parts from an independent service agent of any kind. These businesses will have a trade account with the "distributor" and get a discount" of list price.

If they don't then I think a handling charge of 10% max would be fair but anything else would make me seek out another company to fit - my advice would be to shop around a bit for next time...

Ray

[Brakebuster]

I am afraid I agree with Paul; Jaguar dealers would either sell genuine Jag parts at list price, or if you have a loyalty card or a discount throught your local region with a discount of up to 30%.

I would be very very unhappy at paying a mark up on retail parts from an independent service agent of any kind. These businesses will have a trade account with the "distributor" and get a discount" of list price.

If they don't then I think a handling charge of 10% max would be fair but anything else would make me seek out another company to fit - my advice would be to shop around a bit for next time...

Ray

this is true ,

but a part at list could be ( lets say ) £100

trade or loyalty could see it reduced to £70

but i bet they buy it for £30-£50 , they will never make a ' loss ' , they would go bankrupt

as said above, always shop around, and then make the choice between genuine / OEM or aftermarket,

pays ur money , takes ur choice.....

BB

[ptjs1]

JC,

Just thinking about your reference to the braided brake hoses, I was wondering how you knew that the independent was marking up the recommended retail price from £53 to £91?

As your XJS doesn't have braided hoses as standard, then I'm guessing that you asked the independent to quote you for a price on aftermarket products? Did he tell you which make of hoses he was going to supply and then you went and researched the "rrp" for that make of pipe?

The reason I was asking is that I wasn't clear if the "independent" in question was an independent Jaguar parts supplier (such as Manners, Barratts etc) or an independent Jaguar repair and maintenance specialist?

It would not be unusual for an independent maintenance specialist to charge you the "rrp" for parts that they are procuring and selling to you as part of a service / repair, even if you (and they) could have bought those same parts from a parts retailer at a discounted price. I would almost expect that to happen. For example, I wouldn't expect someone like David Marks Garages to sell me parts cheaply, as he's not a "parts supplier".

Maybe the way forward is to buy the parts yourself at the cheap price and provide them to the independent maintenance specialist to fit?

Of course, if I've misunderstood, and it was a "parts supplier" that was genuinely marking up the manufacturers recommended retail price from £53 to £91, then I suspect I wouldn't be going there ever again!

Paul

[Jagdcat]

Hi

I am sure the garage has perfectly valid reasons for charging what they do but as I have an understanding of the cost price of particular parts (as opposed to retail) I am left feeling uncomfortable.

However, as suggested by one of you, I have voted with my feet and elected to recover the car and move on. It' amazing how disappointed it makes me feel doing this but at least I'll sleep easier !

JC

[raysearles]

JC,

We live in a very competitive world, and the car servicing and repair market is no exception. Like anything else their is a process of natural selection and the ones who do not give good service and and try to overcharge customers will ultimately die - there are some good garages out there you just have to find them, one of our local regional sponsors is a member of the Good Garage Scheme, www.goodgaragescheme.com. Might be worth looking there depending on what needs doing.

As for sleeping easier - don't sweat it - you did exactly the right thing - there are no good reasons for overcharging a customer in this day and age the trouble is the tendency in this country is not to take the action you have.

Hope you get it all sorted, but sleep easily!

[macmotors]

Hi

As the owner of a decent independent garage I would never charge more for genuine parts than the normal retail price, despite the fact that we are lucky to make 10% profit on those parts, quite often we dont get any discount if parts are required for next day delivery rather than a stock order and this is true of most main dealer parts Jaguar or not!
If there are aftermarket parts available and the customer is happy for the use of these, we would normally get more discount but we would not charge full retail as that would also be wrong in my book!
There certainly are not the massive discounts to the trade as mentioned in a previous post!

Regards
Charlie

[Jagdcat]

Hi Charlie,

Every decent business deserves the opportunity to make money and thrive as rent, rates, staff, equipment are not free. I honestly believe what is crucially overlooked on a consistent basis is actual customer service linked to communication on what is going on!

In order to receive the level of service I seek, I am in the process of spending more money getting my Cat to David Marks in Notts - a long way from me but I am prepared to do this because he gives me confidence it will be looked after. Fingers crossed he chooses to open up in East Anglia one day !!

JC

[poprivet]

I recently bought a kick start pawl kit for the Enfield containing hardened steel pawl, pins, springs and gasket which came from India. It cost an extortionate 98 Rupees!

Then I realised that was about 98p