Toyota or the Dealer?

Submitted: Tuesday, Aug 11, 2015 at 17:22
ThreadID: 129950 Views:2290 Replies:7 FollowUps:9
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Here's the scenario. One dealer in the area with two outlets. I have a 2008 Prado diesel.
I wanted radiator inhibitor and two radiator hoses. No top hose in stock and only one in the Sydney warehouse.
If I didn't take the warehouse hose (and pay for it) I could have had to wait a week.

Their other outlet had nothing, not any radiator hoses. What's the point of having two outlets?

Is this a problem with Toyota's stock control or the dealer is a bad business.

If I had not gone to get the parts, I would have dropped off the Prado, had the mechanic order the parts and then be told he couldn't do the job on that day OR the next as his bookings were full.

Toyota or the dealer?

Need another dealer outlet to provide some competition...

bill
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Reply By: brian j11 - Tuesday, Aug 11, 2015 at 17:59

Tuesday, Aug 11, 2015 at 17:59
And some Toyota 4x4 owners boast they can get parts readily available all over Australia!!!!
AnswerID: 589127

Reply By: Steve D1 - Tuesday, Aug 11, 2015 at 18:22

Tuesday, Aug 11, 2015 at 18:22
Ok Bill.

I'll reply to this as someone who works for a dealer. ( Sydney Metro )

It is simply not possible for a dealer to keep every part, for every car. I understand that you would expect a dealer to have a radiator hose in stock for your Prado. Seems logical. But the reality is that, like most things, stock control is run by the numbers. Toyota, and most other manufacturers, demand that dealers do not keep an item in stock, if they have not had a sale of that item, every month, for 3 consecutive months. Basically, if there is no demand, don't keep it.
Toyota Australia, with warehouses in Melb, Syd, Bris, Perth and Townsville, supply to metro dealers twice a day, and rural once a day. Basically, a less than 24 hour supply rate. Can be as little as 4 hrs. That isn't too bad.
It's also a policy that most retail outlets work on. Be it Parts, groceries or new items at your local dept store.
Add to that, dealers don't own the stock that they hold. Its all financed. That includes new cars, used cars as well. Obviously, the need to keep stock to minimum requirements is a priority, given the fact we pay interest on every item in stock. We hold on average 1 Million in Toyota stk alone, not including our other makes we service and sell.
While I'm not at work now, I'm pretty damn sure we wouldn't have a hose in stock for a 120 Prado. There simply isn't the call for it. It is a minimum 10 year old car, these days rarely seen by most dealerships. They are generally serviced these days by "Joes Mechanics", which also explains why, the local Repco will have a generic brand hose in stock. They also run similar stock control parameters.

None of this is having a dig at you Bill, just giving basic reasoning as to why your local didn't have it in stock for you.

Steve.
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Follow Up By: Member - Scott M (NSW) - Wednesday, Aug 12, 2015 at 00:03

Wednesday, Aug 12, 2015 at 00:03
Except when my sis-in-law wanted a replacement mirror for an 80 series. Was told the part was not in the Sydney warehouse and they would have to pay for it to be shipped up from Melbourne. s-i-l asked the question as to whether they would have to pay for shipping if the part was in the Sydney warehouse......... "ummmmmm..... no". Told them in no uncertain terms she wasn't paying for the transport to Sydney.

Mind you, when my brother was told the price of the said mirror, his reply was that he only wanted the mirror, not the whole bleeping door !
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FollowupID: 856971

Follow Up By: 865 - Thursday, Aug 13, 2015 at 13:38

Thursday, Aug 13, 2015 at 13:38
Steve
I would like to relate my experience some time ago, I needed an Air Flow Sensor for my Diesel 4wd drive, the Dealer quoted $1400 for this small electric sensor which absolutely flabbergasted me. Luckily I had worked in the Motor Trade all my life before retirement,I was able to decipher the number on the sensor as been a Bosch No . I phoned the Local Bosch Agent who got the exact same Part for me for $250.
I also previously worked for a motor insurance group who done a survey on the markup Manufacturers put on Spare parts ,in some cases the markup was as high as 400 percent.
So at this Profit I feel that the Manufacturers could keep their Warehouses fully stocked
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Follow Up By: Steve D1 - Thursday, Aug 13, 2015 at 16:35

Thursday, Aug 13, 2015 at 16:35
Yes, the pricing policy of manufacturers is ridiculous. There are reasons for that, which I won't bother going into. It does not change the stock policy though. Simple fact is, if you don't sell it regularly, don't stock it. The air flow sensor you needed, probably wasn't a common failure part, and regardless if it was $14.00 or $1400, it still wouldn't be on the shelf. If Toyota Australia only sells 1 or 2 per year, why would every dealer be expected to have one on the shelf?
Stock levels are not dictated by the price of an individual item. We have $3500 turbos on the shelf. Why? We sell 2 a week. Brake pads for a celica we don't. Never sell them.
Would you expect your local Coles store to keep some obscure tropical fruit on the shelf all year round, I no one wants to buy it?? Of course not. That's why Coles and the like now might keep 2 brands of a pasta sauce, where as before there was 5 or 6. Their sales history tells them what sells, and therefore what to keep.
The rules of supply and demand not only relate to pricing, but also quantity to have on the shelf at any one time. If there is no demand, don't try and supply it. You'd be wasting your time, money, and shelf space.
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FollowupID: 857025

Follow Up By: Steve D1 - Thursday, Aug 13, 2015 at 16:40

Thursday, Aug 13, 2015 at 16:40
Scott.
Your dealer was screwing you. There is no additional freight if it has to come from interstate, except Perth to Eastern states.
And yes, the price of an 80 series mirror is insane. Just be thankful you don't have a new Prado.

Steve
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FollowupID: 857026

Follow Up By: CHRIS UREN - Thursday, Aug 13, 2015 at 17:14

Thursday, Aug 13, 2015 at 17:14
Like Steve, I also work at a dealer ( Melbourne Metro ) Dont get manufacturers mixed up with dealers, a manufacturer sells a part to a franchised dealer, it is at this point that the manufacturer makes their margin on the part, then the dealer on-sells to the paying customer, usually at a RRP set by the manufacturer. This RRP will usually allow the dealer to make between 5% and 50% margin on the part, depending on the discount that the dealer gets from the manufacturer on the particular part. ( Toyota, for example, have over 50 seperate discount levels depending on the type of part ). Dealers dont make anywhere near the margin on parts people assume they do.

Chris
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FollowupID: 857033

Reply By: 671 - Tuesday, Aug 11, 2015 at 19:30

Tuesday, Aug 11, 2015 at 19:30
Bill

Steve is right. I have worked for three Toyota dealers, two Ford and two Holden. The last one was Toyota and that was back in 1986. It was the same situation with parts back then. There were so many different models and so many parts that no dealer can keep the lot in stock.
AnswerID: 589129

Follow Up By: Slow one - Tuesday, Aug 11, 2015 at 19:52

Tuesday, Aug 11, 2015 at 19:52
Funny how things pan out. I can remember in the late 60's taking a heap of brand new parts in a tipper from a very big holden dealers premises in Brisbane to Nudgee tip, complete with a security guard.
Once there myself and a mate tipped and there were guards watching as a dozer destroyed and buried them.

Cry old Holden lovers, as amongst those parts were new panels for the first Holdens.

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FollowupID: 856962

Follow Up By: Steve D1 - Tuesday, Aug 11, 2015 at 19:58

Tuesday, Aug 11, 2015 at 19:58
Nothing has changed Slow. Still happens. All those items being thrown away as redundant stock. Even with the above policies in place, it still happens. How ever, as staff, we can pick up some great items for 1c. I've been able to get some great stuff for nothing, once they go through redundancy. Cd players, sat nav's etc. It's good to be on the inside some times.

Steve.
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FollowupID: 856964

Reply By: Ross M - Wednesday, Aug 12, 2015 at 18:22

Wednesday, Aug 12, 2015 at 18:22
If the radiator hose quality is the same as a 1986 Cruiser, you probably don't need any hoses unless having it as a spare.

I sold my 1986 HJ61 after having it for 25 years and ALL hoses were original and in serviceable condition. No cracks, hardening etc. The first belt which gave trouble was the power steer belt at 17 years old. "No warranty on that at all"
I had spares but simply bought these for future use and not an all of a sudden service.
AnswerID: 589150

Reply By: Member - Outnabout.. - Friday, Aug 14, 2015 at 14:42

Friday, Aug 14, 2015 at 14:42
The other thing from a dealer point of view is that the more parts you keep the more likely you will be throwing parts out because they are dead stock.

Yes you can probably get an aftermarket part from Repco or wherever but they only stock fast moving parts. Eg you probably will get the radiator hose from them but you wouldn't get a 4th gear for a gearbox from them yet Joe Average expects that the dealer has both.

Every time Joe Average buys from the aftermarket supplier it is one less sale for the dealer and as mentioned previously if you dont sell at least three in a year you will probably not stock it otherwise it cost you money to leave sit there forever(i will let the accountants explain that)

Most retail outlets are the same wether they sell car parts on menswear its just that we get angry about car parts because we need our cars to keep moving.
AnswerID: 589230

Reply By: Member - bbuzz (NSW) - Friday, Aug 14, 2015 at 17:03

Friday, Aug 14, 2015 at 17:03
HI all,
Thanks for the input. It is interesting.

The end to this radiator exercise is that the dealer (spare parts guy) gave me the wrong top hose. He gave me KZ120 engine parts instead of the KD120 so of course the job couldn't be done as it didn't fit!

An apology doesn't cut it when I have to drive back to the dealer, wait for another delivery from Sydney and then re-schedule the mechanic. What a waste of time.

I did get a refund of $8 as I was charged trade price for the replacement hose. Nice of them heh!

The kicker here is that when I owned a KZ120, and ordered a timing belt plus bits, I was given a Hilux set and not a Prado. Thats why this time getting the wrong parts AGAIN, I was a bit angry.

Useless dealer.

bill
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AnswerID: 589236

Follow Up By: Ron N - Saturday, Aug 15, 2015 at 17:58

Saturday, Aug 15, 2015 at 17:58
Bill, all parts people I have ever dealt with, require a VIN before they order or supply parts. This is supposed to remove any potential for error. However, a lot of parts people are not up to the job of interpretation.

I source a lot of parts from overseas. The Toyota EPC is online, and if you know your precise vehicle model number/code (typical Prado code is something like KZJ120R-GKMETQ, with "R" denoting RHD), you can find the correct P/N easily, and even get a quote on the supply of that part. That part or parts will be delivered direct to you. Saves a lot of running around.

Toyota EPC

The Japanese manufacturers remove the majority of parts from the local warehouse back to Japan after about 20 years. From there, those older parts are "ex-warehouse, Japan". After about 35 years, the factory destroys all parts records.
You cannot find any current factory information on Toyotas built before about 1978, it has all been totally deleted. If you're lucky, you might find a dealer who has not thrown out the original parts books, and who will still occasionally refer to them.

The supply of parts for older vehicles is reliant on aftermarket parts suppliers, who will keep some factory parts records and specifications for parts manufacture, while there is still some demand for them.
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FollowupID: 857099

Follow Up By: Member - bbuzz (NSW) - Saturday, Aug 15, 2015 at 22:33

Saturday, Aug 15, 2015 at 22:33
Thanks Ron N,
I gave the VIN as I had the book with me. Also I was on the computer as I was involved in the towbar recall.

He couldn't read his records.

I got an apology but that didn't take away the extra drive to the dealer or the repeat trip top the mechanic.

They are idiots.

A few years ago I priced a drag arm for a 1984 HJ wiper assembly. Its a 600mm aluminium rod with pressed nylon bushes on the ends. I was quoted 300 odd dollars! He checked but the answer was the same.

A reader from this Forum gave me a part number and it cost $22! The parts guy would not back down.

Idiots!

bill
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Reply By: Ron N - Sunday, Aug 16, 2015 at 08:42

Sunday, Aug 16, 2015 at 08:42
Bill, the level of ability of many parts people seems to be declining today. It's not helped by the fact the number of parts being replaced, and the number or repairs being done, is on a serious decline. No-one wants to fix anything today.
It's virtually impossible to find an engine reconditioner today - 20 years ago, there was one in every suburb. Today, the engines outlast the vehicles.
I see vehicles going to the scrapman every day, that look better than the ones I drive!

The manufacturers used to make only a very small profit on the manufacture of each vehicle.
They made their profit on the parts they sold - keeping in mind a lot of parts are sold for accident repair.
The average vehicle life is 12-13 yrs, meaning an extended income flow for the manufacturers while the vehicle is still running.
However, as the amount of parts being sold is declining, it does mean the parts prices will increase accordingly.

There is often a vast difference in pricing between dedicated parts sellers and dealers parts depts.
Luckily for us, the internet has opened up the availability of parts to a worldwide basis - and it produces sellers who don't even have a physical store.
These blokes will eventually ensure the complete demise of dealers trying to make a million dollars a year from their parts sales.

Cheers, Ron.
AnswerID: 589305

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