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Thread: Dealer pricing for parts?

  1. #1
    Sign Guy Bdiver's Avatar
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    Cool Dealer pricing for parts?

    I'm usually pretty tolerant of almost everything but this just bugs me. I have been to 3 different dealers in a couple different states (actually walked in) with the part name, number, list price, fiche print out and have been charged more than list for each part? Typically it's a dollar more, sometimes 5 for what I consider small parts. I want to support the local dealers where ever I may be but wonder why the extra markup?
    Brian - Everett, WA
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    I worked for a BMW dealership at one time. Their entire parts inventory pricing list was 6% over MSRP. Just load in the margin ya want and charge away....extra money don't ya know. They will tell you the prices have gone up if you quote a lower MSRP from another source, but they lie in most cases. Part of being into motorcycles...you have to pay to play. Yes, you are getting screwed, but at least you get to ride on top.
    '14 R1200RT
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    Many manufactures have rules for pricing for their dealers. Some don't allow discounting or charging above MSRP. I don't know if BMW does have this clause in their contracts with dealer. BMW has a reputation for terminating dealers.

    In some states it is illegal to charge more then MSRP.

    Unlikely that these dealers will get caught or punished.

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    Different dealers, different states, different expenses, different overhead...

    Just how did you determine "List" ?

    I call BS on the assumption that the dealer is "lying" and I call BS on the assumption that "you are getting screwed".

    How about, you have a choice of doing business, and it is what the market will bear.

    Your opinion may vary.
    JWMcDonald
    2003 R1150RS (current) / 1978 R80/7 (prior)
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    Quote Originally Posted by JWMcDonald View Post
    Different dealers, different states, different expenses, different overhead...

    Just how did you determine "List" ?

    I call BS on the assumption that the dealer is "lying" and I call BS on the assumption that "you are getting screwed".

    How about, you have a choice of doing business, and it is what the market will bear.

    Your opinion may vary.
    Then you didn't know this dealer. All parts have an MSRP and anyone can set their price listing by percentage as a discount or overage. Any dealer, when you put in the qualifying employee will allow a set discount. As well they can have all prices higher than the suggested list as provided by BMW. So BS on your BS. And the original OP knows this as well. And yes, at times people would question the pricing and were told prices had just changed and that was a lie. Call it what you want but it is greed and those being over charged are being screwed. Too bad everyone doesn't have 5 or 6 BMW dealers to chose from when parts are required.
    '14 R1200RT
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    Parts. . .

    When I owned old Goldwings, I was amazed when I found out that Honda DEALERS still carried OEM parts for many areas of the machine. I still own a 1980 GL1100, and -yes- I can still go to the dealer and get many needed parts.

    Now -- with a single 36 y.o. and two 34 y.o. Airheads, an 18 y.o. Oilhead, and a 16 y.o. K11. . . -- I find it EVEN MORE amazin' that I can -- YES! walk into a BMW Dealer (well, it IS a LONG walk for me) and either buy NOW, or maybe ORDER OEM parts. When it gets to the "no profit" line for somebody - manufacturer, distributor, dealer, the marketplace will say bye-bye to these OEM parts, and we'll be dumpster-diving for air filters and clutch cables. Not how I want to spend my golden years, so - yeah, I'll suck it up and pay a little more if that's what it takes to keep the parts rolling.

    To me, the search for parts and working on these truly magnificent movers is almost as much fun as riding them when you're done wrenching.

    Walking Eagle

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    Manufacturer's Suggested Retail Price

    The title says it all.

    Is there any dealers that prices below MSRP for parts? I know that there are some internet vendors for other bikes that do discount OEM MSRP.

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    Registered User lkchris's Avatar
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    Everyone is welcome to mailorder BMW parts.

    If you want immediate availablity and some service, you'll need to pay for it.

    It's astounding how many guys feel "entitled" to their notion of Economics.
    Kent Christensen
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    Quote Originally Posted by lkchris View Post
    Everyone is welcome to mailorder BMW parts.

    If you want immediate availablity and some service, you'll need to pay for it.

    It's astounding how many guys feel "entitled" to their notion of Economics.
    I guess you are right. It is less astounding some folks don't want to get screwed when it comes to Economics. Next time you are charged 50% over suggested list for a tire because you are on theroad and have to go, just use the cellphone and mail order - right?
    '14 R1200RT
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    The business plans vary but I have seen few real bargains coming from a BMW,Audi or VW dealers on the cars & I've bought piles of parts from them all. I've chimed in before on this but the BMW car folks have always been able to charge whatever the mkt will bear & I've done e.g.'s before from Phoenix,AZ vs Scottsdale where the prices varied a huge amount in the same area. I assume the bikes have the same free range to gouge or make you a decent price with a fair markup? My nearest car dealer for BMW/VW has never been my source because of gouging even at shop price. The same guy manages both parts depts(since 1970's!) last I knew forcing the prices to a gouge. OTOH, often BMW parts from the "right place" maybe lower than GM for a similar part, varies lots.
    Some years back I was buying Toyo parts from the TX dealer that gave huge discounts via the web then the mfg cut them off-likely from other dealers that complained and didn't want to get into the several trailer loads of sales per day the guy was doing for volume.

  11. #11
    Registered User lkchris's Avatar
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    Quote Originally Posted by kantuckid View Post
    ... the BMW car folks have always been able to charge whatever the mkt will bear & I've done e.g.'s before from Phoenix,AZ vs Scottsdale where the prices varied a huge amount in the same area. I assume the bikes have the same free range to gouge or make you a decent price with a fair markup?
    For sure dealers can charge whatever they want.

    Just remember that these are LUXURY vehicles, small production runs, and there should be ZERO expectation of "generic" pricing like you might find for chebbie parts at NAPA.

    Recall also that all motorcycling is NOTHING but a hobby and an expensive one at that. The notion that it ought to be cheap and somehow there's an "entitlement" to cheap is ludicrous. So is the notion that being broken down entitles you to special treatment at discount prices.

    And being a hobby it will be a LONG time before government price fixing applies to motorcycle parts. Things like food, utilities, insurance, etc., will qualify ahead of us. It's simply "dreamland" to somehow fantasize that MSRP has any legal bearing anywhere.

    Pay to play.

    A good place to start is to establish an ongoing relationship with a particular dealer. Bring them lots of your business. Get your local BMW club established with a club member discount program at your dealer. You've noticed that whenever the Glaves' have a problem on the road they call Kansas City? (It seems.)
    Kent Christensen
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  12. #12
    Registered User 36654's Avatar
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    Quote Originally Posted by lkchris View Post
    "entitlement" to cheap is ludicrous. So is the notion that being broken down entitles you to special treatment at discount prices.

    And being a hobby it will be a LONG time before government price fixing applies to motorcycle parts. Things like food, utilities, insurance, etc., will qualify ahead of us. It's simply "dreamland" to somehow fantasize that MSRP has any legal bearing anywhere.

    Pay to play.
    Hmmm..........Yes, a brick and mortar business can charge what it wants. But, the mail order and internet businesses can charge what they want. As such, the rational customer (using Ricardo's economic model) will make his purchases accordingly. Parts requiring a low skill level to install will be purchased mail order / internet. Parts requiring a higher skill level to install or needed in an emergency will be procured at a brick & mortar business.

    The assertion that the dealer is "entitled" to charge what the local market will bear will always be challenged by new business formats which provide the products/services to regional/national markets at a lower costs. In the end, the concept of a vehicle dealership is changing and few customers have the tolerance, patience or income for the old-school concept of "charge what the local market will bear".

    When you reference BMW cars, please recall that they now come with free service and full warranties for 4-yrs due to market place competition. In addition, the warranty can be extended at minor cost to 6yrs & 100K miles. Are they a premium brand, I guess so. However, I do see a lot of kids showing up at college driving new 3-series and the monthly lease rates are in the $350~400 range. They are treated like laptops........pretty much disposable items used for a few years, then replaced...before any repairs (which can breathtaking in expense) need to made. Of course, that's always a big selling point for a new lease.
    Cave contents: 99 R11RS, 2013 Toyota Tacoma, 03 Simplicity Legacy, 97 Stihl FS75, Dewalt DW625 & DW744

  13. #13
    Registered User 36654's Avatar
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    Quote Originally Posted by Motodan View Post
    I guess you are right. It is less astounding some folks don't want to get screwed when it comes to Economics. Next time you are charged 50% over suggested list for a tire because you are on theroad and have to go, just use the cellphone and mail order - right?
    Withholding business from a retailer that charges you an excessive price is a purely rational response. To do otherwise, you would circumventing the forces within a free market system.

    You are not seeking an "entitlement", you are just following the "invisible hand" of the market.
    Last edited by 36654; 04-15-2012 at 05:32 PM.
    Cave contents: 99 R11RS, 2013 Toyota Tacoma, 03 Simplicity Legacy, 97 Stihl FS75, Dewalt DW625 & DW744

  14. #14
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    Quote Originally Posted by 36654 View Post
    Withholding business from a retailer that charges you an excessive price is a purely rational response. To do otherwise, you would circumventing the forces within a free market system.

    You are not seeking an "entitlement", you are just following the "magic hand" of the market.
    My local dealer wanted $110 more for a rear tire than I could get it online. Wen I asked him to split the difference (I really try to buy locally) he became very angry and started yelling asking how I would feel if he went out of business. Well, personally, after that and other outbursts I would have no regrets if he folded. (Well, except that his techs are both competent and extremely nice folks who would then have to find other jobs.)

    But heck, Max BMW is just four scenic hours away...and their prices are within a buck of the best I've found on the Web. Not to mention they seem genuinely glad to see me and happy to have my business. My local dealer is under a burden of his own making; my choice is not to pick it up and instead to take my business elsewhere.

    Apparently that works for both of us.
    '07 R1200GS for solo rides
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    Unfunded content provider tommcgee's Avatar
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    Quote Originally Posted by glenfiddich View Post
    But heck, Max BMW is just four scenic hours away...and their prices are within a buck of the best I've found on the Web. Not to mention they seem genuinely glad to see me and happy to have my business.
    Max gets it and goes out of his way to personally greet you.
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