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independent shop kickback?

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Old 10-20-2003, 07:59 PM
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joseph mitro
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Default independent shop kickback?

Hey everyone,
I decided to do the water pump and timing belt job myself. Got the parts from paragon products (good prices). But the shop I usually go to for repairs (small local independent Porsche-only shop here in Oklahoma City) had previously insisted I buy the parts from them even if I did the work myself. Now the lady at the desk seems to be irritated that I told her I got the parts elsewhere, like I did them a disservice.

Fact is, the parts were cheaper elsewhere, and I'm doing the work myself. Do you think these small independent shops get price kickbacks for selling the parts?

Just curious...
Old 10-20-2003, 08:08 PM
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Travis - sflraver
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Always!!! Even the Rennbay parts, if your a shop and you will be reordering you get around 20% off and a net 30 account. Especially if you are a stocking shop that will order ahead of time and keep parts on the shelf.
Old 10-20-2003, 08:17 PM
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IceShark
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Well, it is not really a "kickback" which implies something illegal. Just a normal mark up to cover overhead like shipping, the clerk ordering the product, electrical power, telephone, some profit, etc. You, the customer, are the income stream to cover those costs.

So she was just mad they didn't get the business. Pretty dumb reaction to your face considering you are doing the work yourself, but that is where she is coming from.
Old 10-21-2003, 06:12 PM
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Skip
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Insisting that you buy their parts if YOU are doing your own work is ludicrous. Insisting that you buy their parts if THEY are doing the work is completely understandable.

We've discussed this at length in the past, but the basic idea that the shop will charge higher-than-normal prices for parts is multi-fold. In order to maintain some efficient turn-around, they have to stock (overhead) many parts that are relatively obscure... that costs money. In order to be satisfied that a part is going to last long enough to satisfy any warranty they may offer, they must be sure it is a quality replacement part (e.g. motor mounts). Part of the business of owning a repair shop is the sales of replacement and performance parts. That is a solid portion of the business, and is also a very large part of our (the warehouse distributors) customer base. Even if you buy a part from Jim-Bobs Korner Kar Kare, it may have come from Paragon, etc.

If your question is do they buy parts at lower than retail costs and then charge you retail or more, then the answer is yes.

Good luck with the belts and pump! [strong Italian] "You can do eet!"
Old 10-21-2003, 11:05 PM
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joseph mitro
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Originally posted by Skip
Good luck with the belts and pump! [strong Italian] "You can do eet!"
Thanks! . . . wasn't that strong backwoods cajun ("The Waterboy")?
Old 10-21-2003, 11:19 PM
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that lady at the independant shop is an idiot...
Old 10-22-2003, 12:49 AM
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LOL - I guess you're right - wonder why I lost the placement of that quote... must be the diet again... missing the italian... must have pasta...



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