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Vendor Pricing

This is a discussion on Vendor Pricing within the The Soap Box forums, part of the General Forum category; Originally Posted by archemedes so you will spend an extra say day to save $5, then you end up spending ...


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Old 02-26-2008, 02:26 PM   #21
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Default Re: Vendor Pricing

Quote:
Originally Posted by archemedes View Post
so you will spend an extra say day to save $5, then you end up spending more than that in your time, and gas. I will check around some, but I also will pay for convenience. I have also found buying some things online is cheaper than any local place (computer parts are half what I can buy local for instance) I also am one that will not buy from someone only on price, and will also support the independent guy first when possible (I have not been to a best buy in 9 years even for stuff I can't get myself)
I usually plan my purchases. For one, I need to budget them. So I do my homework, research prices, and plan where I am going to buy things. I make up a lot of excel spreadsheets. I need, this, this, this and this. And I may get those things at 4 different places. Most of the places I buy stuff can be found on my way home from work. If not, I will wait till I am going that direction for something else and buy it then. So an extra day or two doesn't make much difference.

If I need something tonight, right now to fix my car so it runs for work tomorrow, $5 doesn't matter to me. But then, I don't even consider internet in those cases anyhow. So no, time frame doesn't matter much to me.

As for doing the research. I usually get to work 20-30 minutes early which I use to do things like this. Also, I have to take an hour lunch. I spend 15 minutes eating, and the rest researching stuff and on forums. I also get on a couple times a day depending on my work load. So the time factor researching these items is null.

And while I agree that price is not my only factor on buying things, it is very dependent. There are places I just won't buy from and won't even consider. But there are very few of them.

Quote:
Originally Posted by webracin View Post
Zef, I agree. Everyone has their own opinion and they are entitled to it. We value your input as well as everyone elses. I really think that vendors will charge what they think is reasonable (in their eyes). It may not be reasonable to us, however there are those that will blindly pay the price. The good thing is when the product does not go over as big as the vendor thinks it will, you can bet there will be a sale and possibly even selling it below cost just so there is not as much as a loss in profit. Product on the shelf is not making you money, its the product out the door.

You can bet that if I came up with a 20 dollar (my cost) item that converted water to gas, I would not sell it for 25 bucks. I think 250 would be fair since you will be saving that much in the first 6 months you use it.
I agree with you as well that vendors will charge what they want. Doesn't stop me from voicing my opinion on it though . But really, I do understand this. And there are many products that I feel are over priced because I know their true value of how much things cost to make them. I don't mind paying someone a profit. But I don't like paying for overpriced items either.

In regards to your water to gas converter. If you were the first one to come up with this, then yes, you can charge that much. And more times than not, it is because of the R&D involved. But when other people start producing similar items and selling at less price, you will eventually lower your price till you are near the $25 price window that it costs to make the part. Economics will show that if you are making a huge profit, there are a lot of people that are going to try and get onboard as well and make the same profits, but undercutting the competition a little each time. Thus driving prices down. Eventually it will all equal out.

On the other hand. If someone already makes a water to gas converter, and your works only slightly better, the price needs to be comparable to the benefits. You can't sell yours for $250 for the upgraded model, versus $25 for the standard competitors model.

And this entire discussion started about the SS brake lines. I started it by saying that I felt that when a vendor can discount a product $32 on a $100 part, then this product is overpriced (in my opinion). The way I see it, while some places will discount items to where they are making little to zero profit, most smaller vendors will not because they cannot afford it. ZZP may be doing this in this case, I don't know. But usually such offers are one time deals, like the woot deals. But being that these brake lines were offered up again at such a discount would lead me to believe that ZZP has inflated the price to almost, but not quite match that of goodyear lines. And they haven't been selling as well as they hoped, so they are trying to get more sales and get these moving. Might not be the case, but it is how I perceive things, and my opinions.

I personally think $100 brake lines are overpriced, since I know how little it takes to make them. So I haven't bought any. These prices ZZP is offering now are comparable and much more in line in my opinion and I will probably purchase a set in the near future.
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Old 02-26-2008, 02:29 PM   #22
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Default Re: Vendor Pricing

I know you don't think its fair what people set there prices too. 20% markup across the board will not keep the doors open for an automotive business.

If you think someone price is too high then don't' buy it from them.

The labor is where most all shops get the revenue that keeps the doors open. A lot of these nickel and dime price chopper places do not inventory there parts and have a small w/d drop ship for them. So a lot of times they have never even touched the part you have bought. So when you email them they froward the email to the Oem and then reply back once they get the email back from the oem. Or they just point you to the Oem for support.

Oem pricing from production to end user of automotive parts is almost 400%
400 dollar retail carb from holley cost holley 100 dollars. Every personal along the way takes a cut. The retails are the ones that get the smallest cut.

Last edited by Rocket468; 02-26-2008 at 02:38 PM.
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Old 02-26-2008, 02:32 PM   #23
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Default Re: Vendor Pricing

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Originally Posted by webracin View Post
Right, just look at Ebay.....

99 cents for a laptop and 799.00 for shipping and handling

(I know that exagerated, but you get the idea)

Shipping and handling is a real pain sometimes and you have to really be careful. It can turn a good deal into a real quick. That is one thing that I really look for when I am buying online, and just my thoughts are if you are charging reasonable shipping and handling, then I will buy (as long as the price and shipping/handling is cheaper than I can buy it locally). But if your shipping and handling are way out there, I view it as a shaddy tactic and wont buy the item, but that is just me.

webracin
FWIW, the ebay shipping is a scam to not pay so much ebay the company so much. The seller is charged by ebay for the actual price that the item sold for. If they sell a laptop for $.99, then they only pay a fee for a percentage of that $.99. They are not charged a fee on shipping. So it is in the sellers best interest to inflate shipping costs.

As for online stores that charge inflated shipping costs. They do this so people will just look for the lowest price and buy it, not always considering the shipping. Sometimes it works.

Then there is the other case of advertising free shipping, and charging a handling fee. Are you going to hold that against Summit Racing, or Jegs, or Pace?

As you said, I mostly consider the lowest total price for me to get my product. If that is online with $.99 price tag and $300 shipping, then so be it. If it is the little guy down the road, then I will go there. It's my hard earned money and I need to stretch it as far as I can. While there are places I won't take my money any more because of shady business practices or bad prior experiences, these places are far and few between. But in the end, price usually dominates.
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Old 02-26-2008, 02:34 PM   #24
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Default Re: Vendor Pricing

When we ship parts and our trannys out we don't rasie the price of shipping to make money. We charge you exactly what UPS charges us (we don't ship trannies UPS ). I have seen things for sale on some sites and when you look at the shipping it's like $25 for shipping on something that weighs 10 pounds, and I know that we don't pay that to ship UPS (just an example). You will never have to worry about shipping costs from us!!!
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Old 02-26-2008, 02:47 PM   #25
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Default Re: Vendor Pricing

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Originally Posted by 2Fast4U View Post
When we ship parts and our trannys out we don't rasie the price of shipping to make money. We charge you exactly what UPS charges us (we don't ship trannies UPS ). I have seen things for sale on some sites and when you look at the shipping it's like $25 for shipping on something that weighs 10 pounds, and I know that we don't pay that to ship UPS (just an example). You will never have to worry about shipping costs from us!!!
Thats a good honest thing to do. I ship with UPS and Fed Ex a lot with work so its easy to spot a markup. If its a crazy markup I take my business elsewhere.
Anyway glad to hear you ship honestly. Not many places do.
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Old 02-26-2008, 02:51 PM   #26
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Default Re: Vendor Pricing

well you know I never thought about that when it came to ebay, so now you may have changed my mind on that. Everyone wants a quality product for a cheap price. In order to achieve this, you must do research and put some time into looking around for what your willing to pay. All in all, you and I look for the best price on the same product and include the TOTAL price with shipping and handling in order to determine if the item is a good deal. There are others that don't and they will buy on an impulse.

on the water to gas deal, you are right, however if I invented it, you can bet I would be getting royalties off other companies making my product...hehe And yes, as the competition lowers their price, I have to do the same (given they are the same quality) or my product will sit on the shelf making me zabo zippo nada.

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Old 02-26-2008, 02:58 PM   #27
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Default Re: Vendor Pricing

I add $4 to my UPS stuff usually as I don't have daily pickup and they charge me that for doing a scheduled pickup
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Old 02-26-2008, 03:06 PM   #28
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Default Re: Vendor Pricing

Yeah daily pickup is definately a better rate and I dont use that either. Some weeks I dont sell much, sometimes I ship things out every day but its not enough to justify them stopping by, and they also stop by around 3 PM which doesn not help me in the least. I am only about 2-3 minutes from the local UPS terminal and they are open until 8 PM so if I have an order at 7:30 PM it goes out the same day as long as parts are in stock, otherwise it goes out the following day but I like the convinience of dropping off my own parts and wait until late in the day to help people out in case I can ship something out after my daily pickup would have been here.
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Old 02-26-2008, 04:58 PM   #29
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Default Re: Vendor Pricing

takes me an hour to get to the drop off point (so about $5 in gas I guess)
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Old 02-26-2008, 05:12 PM   #30
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Default Re: Vendor Pricing

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Originally Posted by archemedes View Post
takes me an hour to get to the drop off point (so about $5 in gas I guess)
Just wait a few months and it'll be 10 bucks in gas.
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