Baffled

[Earl Weiss]

Are we considered to be idiots?

I comparison shop for parts.

Some recent examples.

Needed a hydraulic pump replacement for a locally purchased / mfgd.
power pack. They quote me like $600.00 for a replacement vickers pump.
Bought it from Sonny's instead for $300.00 +/- incl. shipping.

Need to rplace air limit switch for a wrap around brush. Brush MFG website has it for $375.00

Go to switch mfgr website and order it for $205.00

Had bought some used stuff. One of the items was a Wanner H25 pump. Stipped working after 2 weeks. (No Biggie other stuff made it a good deal)

Local place rebuilds Wanners. They Quote $2400.00 to rebuild or $3400 for a new one. Told them I could but it new for $2200.00. They were shocked then tried to get my business for a new one saying they would cut me a deal.

I understand prices vary. Heck, I am in the gasoline retail business. But still anything more than a 10% swing is kind of nuts.

So, are these suppliers just happy raping the naive and not caring who they turn off or what's the deal?

 

[pitzerwm]

IMO, and I preach it all of the time. If you don't know what it cost to provide your service/products, then when you price it, you are either screwing the customer or screwing yourself, neither is a smart way to run a business.

 

[MEP001]

I worked for a car wash distributor for 10 years. The owner at the time did his best to compete with the catalog house prices - what we couldn't beat we made up for in availability and customer support. We kept almost everything on the shelf, including one of each model changer. The new owner doesn't understand why 80% of their customers have left them. I've talked to him a number of times about it, and he thinks just because he's a local business everyone should use him. There's practically no support anymore, and they don't stock anything, but they still charge a premium. I guess he figures they'll make good money if they ever sell something but just can't fathom that at their prices and lack of stock that they never will.

 

[Earl Weiss]

IMO, and I preach it all of the time. If you don't know what it cost to provide your service/products, then when you price it, you are either screwing the customer or screwing yourself, neither is a smart way to run a business.

True, true. As an attorney I find short sale lenders doing this. Was representing a short Sale Seller and my usual fee is $750.00 for a house sale. The lender (Chase) said they would only approve $250.00 in fees and this came at the last moment. So I was faced with screwing a client by backing out or screwing myself. I ate the deal because it was a good long time client. Now I have spoken to other guys about this and find Chase has chopped some down to -0-. So, the new tactic is that I consult with my client and have them authorize me to tell the realtors who still seem to get their full 5% that they must agree that if the Short sale lender chops my fees they will agree to reduce the commission to a level which will provide the lender with the same bottom line and allow me the ususal fee. This is all in writing and disclosed on all documents.

 

[Earl Weiss]

I worked for a car wash distributor for 10 years. The owner at the time did his best to compete with the catalog house prices - what we couldn't beat we made up for in availability and customer support. We kept almost everything on the shelf, including one of each model changer. The new owner doesn't understand why 80% of their customers have left them. I've talked to him a number of times about it, and he thinks just because he's a local business everyone should use him. There's practically no support anymore, and they don't stock anything, but they still charge a premium. I guess he figures they'll make good money if they ever sell something but just can't fathom that at their prices and lack of stock that they never will.

As in the above item I have told some local guys that I would be willing to pay them 10% more than what I can get it for elsewhere since it is more convenient to get it from them. Some have agreed or come to an agreement close to this and some not.

 

[Waxman]

Same is true for lots of chemicals; I have to look at per gallon pricing on detail supplies (as well as carwash) to make sure I am getting the best price.

For example, got an email about Armorall special pricing. To see how special it was I compared it to KR dressing I use. The Armorall deal was slightly less per gallon when you buy 20 gal. size. However, KR has free shipping deals on pallets, so that makes them cheaper once again.

For me, I look at line items on the p&l and try to chop down the big ones; chemicals, water/sewer, payroll, propane, repairs.

Yes, part of running a sustainable business is comparing pricing on everything these days. Our customers do it, too, with our services, which is the way of the current economic climate.

 

[PEI]

Same is true for lots of chemicals; I have to look at per gallon pricing on detail supplies (as well as carwash) to make sure I am getting the best price.

You can't use per gallon pricing when comparing chemical prices unless you use the exact same amount of both on the same vehicle.

If one product is say $10/gal and requires 6 oz. per average vehicle, and another product is $15/gal and requires 3 oz. per average vehicle, then you will save about $0.12 on every car you wash by using the $15/gal product.

Just my two cents.

 

[Washmee]

The ability to shop pricing on the internet is a game changer. No longer do you have to rely on a local or regional supplier for all your needs. When Sonny's first showed up in the marketplace my local distributor thought they wouldn't affect him at all. He was wrong. When operators found out the could purchase perfectly good equipment for 1/2 what they were paying the local guy, he was toast. For most parts there is no difference who I buy it from. All that matters is price when 2 companies are selling the same item.

 

[Waxman]

You can't use per gallon pricing when comparing chemical prices unless you use the exact same amount of both on the same vehicle.

If one product is say $10/gal and requires 6 oz. per average vehicle, and another product is $15/gal and requires 3 oz. per average vehicle, then you will save about $0.12 on every car you wash by using the $15/gal product.

Just my two cents.

Yes I agree and I am talking about comparing same amounts used per car.

 

[robert roman]

Maybe I'm wrong but this over-pricing is what you get from selling direct; short-selling the channel to make up for weaker sales volumes and higher operating expenses.