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Local parts house vers Summit prices

Discussion in 'The Garage' started by Z3PR, Apr 2, 2004.

  1. Z3PR

    Z3PR Banned

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    Called some local part stores to price some rims for my new ride. 328.00 each. Summit 229.00 each. 99 dollors more per wheel to order them locally. Can you say f_ck that noise !!!
     
  2. 55Willy

    55Willy 3/4 ton status

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    do you know why??
    /forums/images/graemlins/whistling.gif
     
  3. 88Silverado

    88Silverado 1/2 ton status

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    Hi Paul!!

    Long time no posts....Anyways, I have spent Thousands at Summit Racing. I was able to find parts for a couple $$ cheaper at other places but after shipping, etc, Summit was the best. Also, their Cuatomer Serice is tremendous!
    I had a $2500 part order which they shipped FedEx, FedEx screwed up and shipped it to Montana and was estimating 3-5 days to get it back. I called Summit, they shipped another order that day AND overnite at their expense !

    Ciao...


    Hey Jeremy....U get setteled in your now place??
     
  4. 55Willy

    55Willy 3/4 ton status

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    I'm living out of boxes at the 1st new place,LOL. crashing at my brother and sister in laws. they just got approved for thier new house so we move the end of the month. new job is going great.
     
  5. HarryH3

    HarryH3 1 ton status Author

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    That's because local shops don't buy in enough volume to buy their product direct from the manufacturers. /forums/images/graemlins/frown.gif They have to buy from a middleman, often at the same price (or even higher!) than the price Summit sells their parts for. /forums/images/graemlins/eek.gif So to make any money, they have to charge higher prices. But a dollar I can save today is a dollar that I can invest for my future, so I also buy a LOT of stuff from Summit.

    Summit sells stuff cheap for the same reasons that Walmart does. They buy in such huge volumes that they can negotiate MUCH better prices and then pass those savings on to their customers. But just as Walmart has put many mom and pop stores out of business, Summit has put many local speed shops out of business. /forums/images/graemlins/frown.gif But hey, that's what capitalism is all about! /forums/images/graemlins/thumb.gif
     
  6. CyberSniper

    CyberSniper 1/2 ton status Premium Member

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    Actually, that's a fraction of the reason why Summit/Jeg's/PAW are so cheap. They work on tighter margins. Most places expect to charge 35-60% over what they pay for it just like a grocery store does. Summit operates in the 12-20% range from what the salespeople and techs have told my Dad over the years. My Dad has been buying from them since the mid-80s. My Dad says Summit isn't nearly as good now as it was 15 years ago.

    Small business owners never grasp the "how many do I need to sell" part of business, they only grasp the "how much money do I need to make" part. So instead of selling 4 carburetors at $300/each they try to sell 3 carburetors at $400/each. At $300 they can compete with Summit and the other mail order companies but at $400 nobody is going to touch them with a 10 foot pole.
     
  7. HarryH3

    HarryH3 1 ton status Author

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    Go do the research of opening your own shop, find out the prices that you'll have to pay, and then report back with your findings. /forums/images/graemlins/wink.gif

    I did the research on opening a 4WD shop last year. Because of the low volumes, and the way that the manufacturers set up their sales practices, my cost on most stuff was going to be near or above the prices that 4 Wheel Parts "retails" stuff for. Sure, they can operate on lower margins due to the sheer volume of stuff that they sell, but they also buy it for much less. When you call to order 2,000 lift kits you get WAY better pricing than the shop that only wants to buy 5 or 10. /forums/images/graemlins/frown.gif All the local speed shops in Colorado Springs closed their doors several years ago. /forums/images/graemlins/frown.gif

    Most big companies don't want the hassle of shipping, payment, warranty, collections, etc. with hundreds of small shops. So they force orders below a certain quantity to go through a distributor that handles all of the hassles for them. The distributor buys stuff in large quantities, then warehouses it, marks it up, and resells it in smaller batches.
     
  8. owen

    owen 1/2 ton status

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    Ive was in the business for a long time and I can tell you that you cant find an independantly owned store that does better than 30% across the board. I have bought parts from Summit and parts locally. Some things just arent available at "mom and pops". I understand that. But at the same time, I always feel better when I do buy locally, because I know that if their was a dollar made, a local made it. When he needs something from me, I can make a dollar off him. Mr Summit has never called on my services for anything that I can recall. AutoZone tries to present themselves as the friendly knowledgable store, they will even loan you tools! All you do is leave a deposit incase you get it dirty, scratch it, scuff it, or use it! I know- thats AutoZones rules. Or, I can pay $.12 more for a spark plug and my buddy from the M & P will loan me a tool right out of HIS tool box and come over after work to help me if I need it. I know 99 bucks per wheel is rough but that is an isolated example. Try a wheel shop or call Summit- But dont let that be an excuse to cut out your local merchants out of the loop. just remember where YOUR paycheck comes from and try to distribute your spending equally! Not trying to be an @ss, I just have feelings for the "mom and pop" because that is who we all are. Their is much more to this hobby/sport/passion of wheeling than pinching pennies. It is something to learn, enjoy(of course), and SHARE! < THAT is the American way!! /forums/images/graemlins/usaflag.gif
     
  9. CyberSniper

    CyberSniper 1/2 ton status Premium Member

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    One of my friend's Dads looked into it once. The money would've been tight at first. It's all about volume and choosing your distributor.

    A speedshop opened about a year ago in my home town. We didn't have one for years (but we had a machineshop). It's still in business and is only about 10% more expensive than Summit or Jegs. They choose their inventory very wisely and advertise periodically. They've got a few kids working there that know their crap. They get just enough rice, redneck grease monkeys like myself, and truck acessory buyers in there to make money. No, they aren't making millions but the guy that owns/manages it drives a 'vette.

    I'll buy from a local if it's within 15% of me going mail order. If it's not, too bad, I'll keep UPS busy. For example, the local machine shop. Their prices are only about 10% more than ordering from Summit.

    Those same local speedshops, auto parts stores, et cetera will give people they know killer deals. So they can't be needing that much money if they're willing to discount a lot for their "buddies".

    I'm sorry, but I've seen people succeed at it without gouging the customer so I know it can be done.
     
  10. 4xcrazy

    4xcrazy 3/4 ton status

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    I will just flat out pay alittle more anyways to help keep the mom and pop stores and shops in business, these big corporations that are nationwide surely have enough sales to keep going strong.

    Most of the time you usually get better service from the locally owned small places anyways.
     
  11. gravdigr

    gravdigr 1/2 ton status

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    We actually have a shop here that told me anything I find in the summit catalog I can buy from them for the same price, just bring in the catalog with the part #. I will say summit does have excellent customer service and return policy. I go local for stuff I need right away but I'm not gonna pay 20% more to buy local. I help run a monument business and I can tell you there is no loyalty amongst buyers/sellers. We gave the same car lot owner our business for 20 years and when his wife died he went elsewhere for a monument because it was cheaper. And there have been other examples like that. So in my 10 years in business I have learned if you don't look out for #1 you will get sh!t on. Sad but true.
     
  12. Triaged

    Triaged 1/2 ton status

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    One thing to consider is sales tax. In LA county it is 8.25% (maybe more...I haven't checked in a while). Sometimes I think CA is trying to get rid of all buisnesses in the state. When I am going to buy something big$$ I ALWAYS buy from out of state...shipping is always less than tax (unless I am trying to buy lead /forums/images/graemlins/tongue.gif). I only buy the small stuff and stuff that I need same day from local places...I would rather give my money to UPS than CA /forums/images/graemlins/whistling.gif
     
  13. 84_Chevy_K10

    84_Chevy_K10 Banned

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    [ QUOTE ]
    That's because local shops don't buy in enough volume to buy their product direct from the manufacturers. /forums/images/graemlins/frown.gif They have to buy from a middleman, often at the same price (or even higher!) than the price Summit sells their parts for. /forums/images/graemlins/eek.gif So to make any money, they have to charge higher prices. But a dollar I can save today is a dollar that I can invest for my future, so I also buy a LOT of stuff from Summit.

    Summit sells stuff cheap for the same reasons that Walmart does. They buy in such huge volumes that they can negotiate MUCH better prices and then pass those savings on to their customers. But just as Walmart has put many mom and pop stores out of business, Summit has put many local speed shops out of business. /forums/images/graemlins/frown.gif But hey, that's what capitalism is all about! /forums/images/graemlins/thumb.gif

    [/ QUOTE ]

    Nail on the head.

    I can get ANYTHING through my work. You name it, I can get anything that Jeg's or Summit sells through a performance warehouse (actually we deal with two on a regular basis).

    Unfortunately, our pricing sucks, and you can definitely find better deals.

    Example? D60 lockright. My store's price is ~$340 on it IIRC. You can buy it on www.tellico4x4.com or www.truckperformance.com cheaper than that all day long. Retail is over $400. Even if I sold it at 20% margin which would be really low in the scheme of things, it'd still be far more than just buying it from someone else.

    Same goes for any other possible part. You name it. I have the access and the resources to get ANY part and eliminate at least one person's chance to make profit (they'll sell me damn near store cost) and it is still cheaper to order from a high-speed mail order.

    That said, I still do get some minor items through my work. The major thing is freight--there is no freight on most items.

    Honestly, I've tried and tried and tried to get parts. I know you guys would all love to buy stuff from me if I could buy it at say 20-30% margin and turn the parts over and give you guys a chance to save 10% or so over the cost of buying from places like Jegs, Summit, Four Wheel Parts, JC Whitney, etc.

    The problem is that even if I was allowed to buy them at ZERO profit to the store I work at (which I certainly am not, and if they knew it wasn't for me, I'd have to almost pay full retail for it) I or nobody else could compete with the mail orders.

    I've still pondered the idea of selling winches or something on Ebay just for the hell of it. If unknowing people bought them from me at full retail price I could stand to make some money--only problem is that if an item is backordered you could screw yourself.
     
  14. Z3PR

    Z3PR Banned

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    I was just saying that $99.00 more per wheel is alittle outragous. /forums/images/graemlins/deal.gif
     
  15. mudjunkie 82

    mudjunkie 82 1 ton status GMOTM Winner

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    My local machine shop that did the machine work on my block was Complaining and asked me why I buy my parts from summit and jegs. I told them I saved over 700.00 buy buying from those two instead of him. That might not be alot of money to some people but it is to me.
     
  16. gravdigr

    gravdigr 1/2 ton status

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    I think $700 is a lot of money no matter who you are.
     
  17. CyberSniper

    CyberSniper 1/2 ton status Premium Member

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    $700 is what it cost me in parts and machining to build my 305. I think if a shop is going to charge you that much more THEY should buy from Summit and Jegs and then sell it to you for a few bucks over cost.
     

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