View Single Post
Old 07-09-2013, 05:09 AM   #749
JimVonBaden
"Cool" Aid!
 
JimVonBaden's Avatar
 
Joined: Feb 2005
Location: Alexandria, VA
Oddometer: 50,295
Quote:
Originally Posted by MJS View Post
You do realize that the retail prices are set by the manufacturer's importer and parts distributor, don't you?

The dealer can discount (or mark up) the suggested retail price but most generally work from the list price in the manufacturer's parts list. And part of their dealer franchise agreement is that they buy their OEM replacement parts from the manufacturer's distribution center. That's the difference between OEM and aftermarket. And the battery pricing you experienced. (I also bought my replacement 950 KTM battery from the Honda dealer.). The manufacturers and distributors cover their warranty costs as well as make a good portion of their operating budget from parts sales.

Smart dealers would offer you the choice of OEM or aftermarket with the appropriate price differential. But there really isn't much incentive for that. If I get 40% mark up, I make twice as much on the OEM KTM battery for the same effort as the $115 aftermarket battery. And I have the manufacturer's warranty on that part.
Very short sighted.

40% of zero isn't much. The incentive is to produce sales. Walmart makes big money on a 3% or less mark-up by selling voulme. If you sell a non OEM part for 20% mark-up, but sell 100 of them it beats the hell out of 40% mark-up on 20 sales. As for warranty, the aftermarket also honors warranty through authorized retailers.

Jim
JimVonBaden is offline   Reply With Quote