Parts Prices. Dealer vs Online

Simon,

If the local dealer would sell parts at more reasonable prices or
alternatively, offer me a loyalty discount, then I would most likely buy
from them since I would also gain the advantage of getting the parts much
sooner.

Welcome to the global market! By the way, the discussion here is not
restricted to car dealers and automotive parts. Ebay is perhaps the best
example of how things have changed. As more consumers become tech savvy,
companies will need to become more competitive.

Bob

 

Like I said, the one near me doesn't even discount to the local body shops!

While everyone makes mistakes, some of the on-line dealers are very good
about double checking part numbers and everything before completing the
order. Mistakes are rare with the one I deal with.

The small dealer stocks *only* the common stuff like fluids - pretty
much zero parts - so they always have to order *anything* I need. I can
order from a dealer in OH from their web site and have it either the
next day or the second day after I order by ground shipping. That beats
the dealer across the street from me by 2 to 3 days typically.

Hah! I don't blame the owner for doing that.

 

Note that you could have had exactly the same experience with a local
dealer.

Years and years ago, we ordered some furniture from a store in town
(not auto parts, but I think the lessons apply). When the delivery
date came and went we tried to phone them... and got the phone
company's recorded "disconnected" message. We went by the store, and
found a padlock on the door, with a notice saying the landlord had had
it padlocked due to non-payment of rent. Uh, oh.

A little bit of research later, we established the company was still
in business in Albuquerque. After a short chat with an attorney
friend, we decided there was enough money involved that it was worth
while to sue them in small claims court to establish our right to the
money. We did, they didn't show up for the hearing, we got a judgment
for the money they owed us plus a hundred bucks or so in court costs.

We went to our credit card company with the judgment, and they
refunded our money (fortunately, the furniture company had been using
a single bank account for both of their stores, so the credit card
company was able to extract the money. Otherwise, things would have
gotten more interesting). The court costs weren't enough to be worth
pursuing from 200 miles away, so we never got that back.

In retrospect, we could have skipped the lawsuit, but we had visions
of the furniture company going back to the credit card company
claiming to have delivered the furniture and wanted to avoid any
possible fights.

 

Yes, I get it Bill.

Maybe you hadn't noticed that I had mentioned I HAD been under the
IMPRESSION that franchised dealers were restricted to only selling within a
pre-described region and I asked if this is, in fact, the case.

If it IS the case then the online dealers may end up losing their franchise.
If it is OK by Chrysler to sell that way then of course, it is every man for
himself. That said, the dealers in larger centres have an obvious advantage
over those in smaller centres so I still think it is a bit hard on "local"
dealers if their local customers buy elsewhere. It is a vicious cycle...the
lower the sales the higher he has to mark them up to cover his costs...don't
be surprised if you don't have a local dealer at all in the near future.

Now, if you are saying that your local dealer is a crook who is making a
fortune and ripping people off with his pricing then well, fair enough, take
your business elsewhere. Have you ever had a conversation with him about his
prices? It might be interesting to find out what his thinking actually is.

So, what is the deal with Chrysler...is selling outside the franchised
region OK or not?

Simon.

 

Yes, but how does a physical dealership with all the associated costs
compete with an online warehouse type of business? It is an unfair fight.
The online sellers cream off the easy sales while the dealer is left to take
on the heavy lifting.

Really, the dealership as we know it is pretty much doomed....clearly a new
business model is needed...one more area where the auto manufacturers have
failed to move with the times.

 

Can you read at all?

 

It is what it is. So what's your point?

If you want to talk "fair" (I don't know why you keep bringing that word
up), the local dealer has an advantage in that 98% of the public is
ignorant of the existence of discount on-line dealers - so they can keep
soaking them at 10 to 20% above list. With the typical customer being
totally captive for both service *and* parts, what's fair about that.
Talk about bringing a knife to a gun fight!

Maybe. You're saying in a way it's like the mom & pop hardware store
competing with Lowes. I'll give you that. So if that's the better
business model, what's the complaint? Shouldn't a better business model
win out over the dinosaur business model.

Again - what is your point?

 

It even happens to non-internet dealer operations. Two weeks ago,
Desert Chrysler-Jeep-Dodge was happily doing business here in Las
Vegas. A coworker dropped his car off for service that morning, with
business as usual.
Then at 5:00 PM, the GM got everyone together and told them, based on
decisions at "AutoNation" group, they were closed as of that moment.
Clean out your personal belongings and leave The only exception was
for customers picking up their cars from service. .

 

Same question for you.

 

Even though the OP claims to run his own business, he seems to have
trouble comprehending the simplest of business concepts or realities
such as the one you just presented, or that there's no difference
between the "local" dealer and the "local" dealer who *also* does
internet business other than that the latter *also* does the internet
business which the former could do if they so chose, and yet, something
about that is "unfair".

 

But you seemed to be going back over the same stuff over and over again.

I don't know the answer to that. If it is a violation of their
franchise, then Chrysler is turning a blind eye, because there are many,
many dealers that have been doing it for a few years continuously - as
well as with Ford and GM.

That would not affect me in the least. I know it would be a problem for
most car owners, but I avoid dealers like the plague because I think
*most* of them are unethical and take advantage of people who are
ignorant of alternatives or who otherwise lack knowledge or leverage to
be treated fairly (I'm talking about most women and the elderly and
anyone who generally doesn't know one end of a car from the other).

Thanks for your permission. My first new car experience (over 25
years ago) was a nightmare because of a dealer (in a different location
than I am at now). Every few years my distaste for dealers is
revalidated by my testing the waters or because of something I
personally witness. I can count on two fingers anything close to a good
experience with a dealer in the 25+ years since that first one. I will
say that I do know of a very good and honest dealer somewhat close to
me, but they are not close enough to be convenient enough for me to
forego my DIY nature.

Have you ever had a conversation with him about his

I've mentioned it to a couple of the parts guys - they just say flat out
'no' and don't discuss it. Like I said, even local companies in
repair business don't even get a discount from this dealer. That's how
much they *don't* want people's business and are willing to suffer under
what you are calling an unfair system (of competing with on-line dealers).

I honestly don't know for sure. But like I said, either it's not a
violation or it is just not enforced. I doubt if Chrysler has enough
leverage with anyone right now to be enforcing much of anything other
than paying the bills that are owed them. It also is to their advantage
to *not* enforce it (if it is in fact a violation) because it means more
parts sales for them - they probably welcome that right about now.