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.
AnswerID:
589128
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 !
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
FollowupID:
857018
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.
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
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
FollowupID:
857033