# Dealership Price Gouging



## BWfarms (Aug 3, 2015)

I needed a new partial powershift knob for my tractor. I naturally look for the part online and then go to the dealership to compare prices. I see multiple dealerships selling it for $319 on Tractorhouse and call my local, Clapp.... $435. Asinine! The markup is absolutely disgusting. Sioux International has my business even with $12 shipping.

I've gotten to where I have minimized my business with Clapp. I only buy when it's cheapest or it's in stock and I need it right then. Long story short, the current owner bought the business back and is driving it right back to where it was when it was sold to begin with.

I'm just absolutely floored.


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## Amelia Farms (May 16, 2012)

I've tried to buy a couple of implements from them over the years, they never would budge any on price when I tried to deal with them.


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## swmnhay (Jun 13, 2008)

BWfarms said:


> I needed a new partial powershift knob for my tractor. I naturally look for the part online and then go to the dealership to compare prices. I see multiple dealerships selling it for $319 on Tractorhouse and call my local, Clapp.... $435. Asinine! The markup is absolutely disgusting. Sioux International has my business even with $12 shipping.
> 
> I've gotten to where I have minimized my business with Clapp. I only buy when it's cheapest or it's in stock and I need it right then. Long story short, the current owner bought the business back and is driving it right back to where it was when it was sold to begin with.
> 
> I'm just absolutely floored.


33-50% profit isnt enough for some dealers it seems.Jack it up some more.My independent mechanic found his dealer he was getting parts from jacked the price up 10% then gave him a 10% discount.Well they jacked everyones price 10%.Checked their price on a waterpump and they were 10% higher on that.So instead of getting a sale and makeing something they made 0 when I got from another dealer for $140 less.

Sioux International = Sioux Falls?


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## BWfarms (Aug 3, 2015)

Amelia Farms said:


> I've tried to buy a couple of implements from them over the years, they never would budge any on price when I tried to deal with them.


Keith was good to me, I've haven't bought any equipment there since he left.


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## BWfarms (Aug 3, 2015)

swmnhay said:


> Sioux International = Sioux Falls?


The very one.


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## Tim/South (Dec 12, 2011)

A carb kit for my zero turn mower was $79 and did not include the needle valve. Bought it for $16 online, needle valve included.


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## mlappin (Jun 25, 2009)

Its not just ag stuff, I needed a carb rebuild kit for my Stihl leaf blower. Stihl won't sell direct, only thru dealers. Local hardware store is my local dealer so priced the diaphragm, needle and gaskets, $109 from them. I bought a Stihl NIB old stock carb online for $39, knockoff chinese carbs are $19 or less on Amazon.

I don't even try to turn a profit on components when selling a boiler, install parts can be bought anywhere on the web, only mark up I get is lets say I'll buy a box of 25 or 50 fittings from Supplyhouse then charge the single item price for it.


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## ozarkian (Dec 11, 2010)

A friend of mine has a Case/IH 5240 tractor that when it got hot, it would not go into reverse. He had an independent mechanic work on it. He traced it down to a connector with two diodes in it. Case/IH wanted $54 each. They had four of them and they were all in Canada. Part and freight would make it $200 each. I sent him some links of electronic component companies I have done business with. The diodes cost $.75 each. He ordered them and received them in 2 days. Installed them and the problem went away. Seems to me when it comes down to an "Electronic problem", It therefore becomes a Gold Plated problem. Companies need to make a profit, but so do we.


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## stack em up (Mar 7, 2013)

ozarkian said:


> A friend of mine has a Case/IH 5240 tractor that when it got hot, it would not go into reverse. He had an independent mechanic work on it. He traced it down to a connector with two diodes in it. Case/IH wanted $54 each. They had four of them and they were all in Canada. Part and freight would make it $200 each. I sent him some links of electronic component companies I have done business with. The diodes cost $.75 each. He ordered them and received them in 2 days. Installed them and the problem went away. Seems to me when it comes down to an "Electronic problem", It therefore becomes a Gold Plated problem. Companies need to make a profit, but so do we.


Reminds me of a Cadillac CTS a buddy bought on auction. Wouldn't start, no power anywhere. After a little digging, found out there is a diode in steering column harness. Caddy wanted almost $900 for the harness. Found the diodes in the harness, figured out what he needed, went to local Radio Shack and got them for under $10. Car still running to this day as far as I know.

When I worked at the dealer, parts were marked up minimum 36%.

It's notnjust parts, look at seed corn. You can sometimes buy the same genetics in different bags for vastly different prices. Gotta pay for them new pickups somehow!


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## swmnhay (Jun 13, 2008)

stack em up said:


> Reminds me of a Cadillac CTS a buddy bought on auction. Wouldn't start, no power anywhere. After a little digging, found out there is a diode in steering column harness. Caddy wanted almost $900 for the harness. Found the diodes in the harness, figured out what he needed, went to local Radio Shack and got them for under $10. Car still running to this day as far as I know.
> When I worked at the dealer, parts were marked up minimum 36%.
> It's notnjust parts, look at seed corn. You can sometimes buy the same genetics in different bags for vastly different prices. Gotta pay for them new pickups somehow!


A friend of my BIL owned a car salvage yard and he was saying some of the electronics are not interchangeable because the computer can tell it's not the original part or installed by a dealer.I presume if dealer replaces a part he reprogram the computer,if you do it yourself you aren't able to do that.Just another way of companies making sure you have to buy their over priced parts.

He also said the car salvage bussiness realy dropped of because of this and cheap after market body parts.

Speaking of used parts it used to be 50% of new and the last time I bought something there it was 60%.


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## r82230 (Mar 1, 2016)

stack em up said:


> Found the diodes in the harness, figured out what he needed, went to local Radio Shack and got them for under $10. Car still running to this day as far as I know.


Not enough people did this it seems, Radio Shack is out of business (at least in MY area). And I miss it, too.

Larry


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