mb757

I've been the parts manager at a Ford Dealership for 36 years and wonder where you're pulling your figures. "On some items I have seen 400 to 450% markup on items like Ford wheels, etc." I've never had a 400 to 450% mark up on any part that I've sold. What the Manufacturer sells you as an upgrade on a car takes into account the trade in wheels that you didn't get, packaging handling, storage and Labor all come into account for the price of a part. Most of the parts that I sell in a Ford Blue Box is a 40% mark up. A part that would retail for $100 will cost the Dealer $60, if you want to figure the mark up at cost plus it is 67% over cost. There are some exceptions to the rule, many times Motorcraft parts will carry a larger margin, but it's usually a 50% margin or a $100 part would cost the dealer $50, or cost X2. That's usually the max mark up that a dealer will make, you throw in rent, employees, delivery vehicles, gas ect and my cost of sale taking into effect any discounts on the back side is cost plus 16%. So my cost on a part may be $60 in the price book, the actual cost taking into expenses is $69.60. Mark up on a customer that spends $60,000 a year with me will net me 10% on the sale. The parts you're finding on Ebay are more than likely a defective part sold with out warranty or a part that has been on the shelf and needs to go at a loss, they aren't making money selling you a $78 part for $12.

Ford says that the average retail customer will come through the shop an average of 3 times a year, spending an average of $150 per visit. Why should a person that spends $450 a year buy at the same price as wholesale customer that spends $60k? My margins at year end before expenses is 26% a far cry from 400-450%. With that being said, you come to me and ask for a discount I will usually give you 10-20% discount off list, you come to me with a chip on your shoulder, there won't be a discount.

JimC

Same place he gets all of his "facts". People will read something on the internet, and of course then it is true no matter what you say! He won't be able to cite a single example of the "400 to 450% markup" he has "seen."

barstowpo

Unfortunately, the dealer Mr D mentioned will not budge off of list. That is why I use online dealers and wholesalers. My dealer earned no loyalty from me charging an ADM on my car so I bypass them whenever possible. I don't mind paying a little more for things when I get good service or to support a local small business. My dealer has not earned that from me.

mb757

I really get that no one wants to pay the fees that a dealership charges, but you look at what a dealer has to pay to do business with Ford and it really adds up. Monthly fees to use their software to diagnose and update the cars, $10,000 hoists that need to be replaced every 7-10 years. $20,000 to $40,000 annually for special tools from Ford that you rarely use and everyone wants to borrow for free. The list goes on and on, the Parts and Service dept if run properly will cover the fixed expenses of a dealership. If you want to look at the profit centers of a dealership look at the used car dept and F&I, that's where the money's at.

barstowpo

I understand and agree with what you're saying mb757. I used to work at a Datsun dealer and was familiar with their operating expenses. I think it cost us $90 just to pull a car into a service bay when all the costs were factored in. I just refuse to pay for that if I don't have to. Had the dealer given me a better deal up front, maybe I'd be more tolerant. I spend a lot of money on parts for a retail customer but not at a dealer.

Mr. D

The odd thing is that dealer has learned to treat car sales more reasonably, but the parts dept. is unreasonable. When a parts dept. charges 400% markup on some parts it maybe legal, but it is not honest. It seems to me to be a scam to make ridiculous markups in selling part for repairs & accident work. If you damage a certain wheel on something like the 2015 Anniversary Mustang a local repair shop doesn't have time to search the internet for a deal on that part. So you, or your insurance co. may get charged $1000. for a wheel on that special car that can be bought retail on the internet for $320. I needed a very small EcoBoost decal for my truck. $78. plus tax from the dealer! I bought it on the internet for $12. delivered! That's a legal racket that hurts us all & it sours people on the Ford Brand!

Mr. D

A rectum made a comment like that to me from the safety of the internet about what I said I payed for my 2016 Mustang. When I asked him to put $10,000. where his mouth was.... I never heard from him again! It must be like a lot of people that will give you the finger from the safety of their moving car... that likely would not do the same standing in right front of you! I don't make such comments about other people's lack of honesty on this forum, so you being a "Mod", I suggest you should not do it to me!

barstowpo

It is only 40% though, not 400%. It just seems like 400%.

mb757

Mr D, I would still like to know where your are pulling your numbers from? I took the liberty to look up your parts and have hopefully attached a copy of the part number and cost and list for the parts. The Ecoboost emblem for a 2015 F150 list price is $58.80 dealer cost is $35.28 which is 40% off of the list price or the list would be cost plus 67%. The wheel you're looking for on a 2015 mustang with out a vin would be hard to get an exact price, but by application one would fit. That has a retail price of $1109.78, again the dealer cost is $605.87, take 40% off list and you get cost of $605.87. Take that $605.87 times 67% and you will come up with a list price of $1109.78. Where does that equate to 400-450%, if you want I can direct you to a remedial math class so they can help you with percentages. I have a feeling with the chip on your shoulder that would be the reason your local dealer isn't budging on the list price. Again if your a dick to me, no discount for you.

barstowpo

I think you are confusing the issue with facts.