Local Audi dealers marking MSRP up above Audi's MSRP

[tom_9109]

Just a heads up for you Audi owners. Audi in Calgary marks their parts up an additional 20 - 25% above the MSRP set by the manufacturer. As an individual consumer they will not let you purchase it at MSRP. The bodyshops still get Manufacturer MSRP - % so they can make money but as an individual consumer you pay extra.

I know theres other dealerships than audi that do this. little bit of a rant. Edmonton Audi is MSRP + 10% however they were willing to take 10% off the price which makes it about the same as it should be.

[4DoorGTZ]

Good to know but isnt it common sense that the dealers screw you on parts? The Rear end for my V was $3900 from GM Canada and $1350us from a GM dealer in the states.... go ahead and figure that mark up :banghead:

[thedave]

They already make enough money on MSRP... craziness.

[bituerbo]

Yeah, there dozens of reputable audi parts sources online.

[Rstar]

haha wow. Inflation in Calgary is just over the top. I've never done a real comparison but just from anecdotes, it seems like everything is more expensive.

[tom_9109]

Originally posted by bituerbo
Yeah, there dozens of reputable audi parts sources online.

But body sheet metal is tough to find.

[Wrinkly]

I can believe it - hence they won't be getting my business. I was recently quoted $1,400 for a timing belt replacement. The parts (to me) were listed at $600 of that. I can get OEM online for $300 (US though, but damn close to par ATM anyway).

[Pahnda]

Oil from the dealership is cheaper than I was expecting, $8.50 for a quart of 5w-40 castrol syntec which is like $9.50 at Canadian tire. It's not much different but still, I was expecting a bit of ridiculousness there.

The oil filter for the 2009+ 2.0TFSI (06J115403C) is like $23 though... you do the math on that one...

[tom_9109]

For mechanical stuff

carpartscanada

is cheap and shipped for free.

[2002civic]

Is this really a surprise? I think every manufacturer is like this. The US to Canada cost though is actually the manufacturer not being up to date with the current dollar. Now still that is a high mark up.

Cost on a part in Canada is no where near the cost for the U.S.

[Wrinkly]

Originally posted by tom_9109
For mechanical stuff

carpartscanada


is cheap and shipped for free.

Anyone have any experience using these guys? Reviews?

[Xtrema]

Originally posted by Pahnda
The oil filter for the 2009+ 2.0TFSI (06J115403C) is like $23 though... you do the math on that one...

Not that outrageous IMO. It is $15 on-line but you have to pay shipping. And a crappy compatible one is about $10.

Yeah, I heard Edmonton has a more fair price, it's typical Calgary mark up IMO.

[scat19]

BMW jacks it up 60% compared to the states.

[tom_9109]

Let me be clear.

AUDI CALGARY IS MARKING IT UP ABOVE CANADIAN MSRP.

As far as Audi Canada vs Audi US compare, prices aren't too out. Not much savings south of the border. Honda on the other hand I save 50 - 80% shipping it to sweetgrass.

[2002civic]

Originally posted by tom_9109
Let me be clear.

AUDI CALGARY IS MARKING IT UP ABOVE CANADIAN MSRP.

As far as Audi Canada vs Audi US compare, prices aren't too out. Not much savings south of the border. Honda on the other hand I save 50 - 80% shipping it to sweetgrass.

Every dealer does this regardless of brand, MSRP really means nothing. Key word is suggested....

[tom_9109]

Originally posted by Wrinkly


Anyone have any experience using these guys? Reviews?


I use Carpartscanada frequently. If they have it, I get it there. Fast shipping and great prices.

[cocoabrova]

Originally posted by tom_9109
Just a heads up for you Audi owners. Audi in Calgary marks their parts up an additional 20 - 25% above the MSRP set by the manufacturer. As an individual consumer they will not let you purchase it at MSRP. The bodyshops still get Manufacturer MSRP - % so they can make money but as an individual consumer you pay extra.

I know theres other dealerships than audi that do this. little bit of a rant. Edmonton Audi is MSRP + 10% however they were willing to take 10% off the price which makes it about the same as it should be.
What part(s) are in question?

[tom_9109]

Originally posted by cocoabrova

What part(s) are in question?

Grille, Left Fender.

And I'd imagine any other part.

[Redlyne_mr2]

Originally posted by 2002civic


Every dealer does this regardless of brand, MSRP really means nothing. Key word is suggested....

[Wrinkly]

Originally posted by tom_9109



I use Carpartscanada frequently. If they have it, I get it there. Fast shipping and great prices.

Cheers!:thumbsup:

[Iqoair]

Originally posted by tom_9109
Let me be clear.

AUDI CALGARY IS MARKING IT UP ABOVE CANADIAN MSRP.

As far as Audi Canada vs Audi US compare, prices aren't too out. Not much savings south of the border. Honda on the other hand I save 50 - 80% shipping it to sweetgrass.


This applies to every dealer in Calgary, it's the way it is. The margins set by the manufactures are terrible from a business view. Markup on many parts are 100% + up to a certain dollar value.

[7thgenvic]

That's why you buy your parts off the internet. It's a no brainer.....If your desperate and need to buy the parts right away then whatever...Spend the money if the dealership has it...I always source my shit before i head to the dealership...

My example was a idler pully for my LS400....Calgary Lexus..225....Internet....115 with shipping. I needed it right away...I"m happy it wasn't anything else.

[cocoabrova]

Originally posted by Iqoair



This applies to every dealer in Calgary, it's the way it is. The margins set by the manufactures are terrible from a business view. Markup on many parts are 100% + up to a certain dollar value.

:werd: the price that dealers are paying for these parts area already at a premium....

The profit margin on smaller dollar items i.e. bulbs/nuts/bolts is higher as opposed to the higher dollar items i.e engines/trannies/turbos etc, there is no set markup.... Bodyparts would fall kind of in the middle of the spectrum....

[adidas]

Originally posted by Pahnda
Oil from the dealership is cheaper than I was expecting, $8.50 for a quart of 5w-40 castrol syntec which is like $9.50 at Canadian tire. It's not much different but still, I was expecting a bit of ridiculousness there.

The oil filter for the 2009+ 2.0TFSI (06J115403C) is like $23 though... you do the math on that one...

Go to walmart...

Castrol 5-40 syntec 5L is $38.98

[cocoabrova]

Originally posted by Pahnda
Oil from the dealership is cheaper than I was expecting, $8.50 for a quart of 5w-40 castrol syntec which is like $9.50 at Canadian tire. It's not much different but still, I was expecting a bit of ridiculousness there.

The oil filter for the 2009+ 2.0TFSI (06J115403C) is like $23 though... you do the math on that one...

Where did you buy the oil filter at?

[FiveFreshFish]

Originally posted by Wrinkly


Anyone have any experience using these guys? Reviews?

I've used them about a dozen times and have never had any problems.

To qualify for free shipping, your total needs to be at least $75. They ship UPS Ground from Canadian warehouses and it only takes a few days. UPS within Canada is actually pretty good.

[CRXguy]

Originally posted by FiveFreshFish


I've used them about a dozen times and have never had any problems.

To qualify for free shipping, your total needs to be at least $75. They ship UPS Ground from Canadian warehouses and it only takes a few days. UPS within Canada is actually pretty good.

I ordered $80 worth of stuff on Tuesday afternoon, and UPS dropped it off this evening. Pretty damn fast from Ontario.

[rylan v]

Some shops with do what is called matrix pricing. This is a format for charging above and beyond what is fair to the consumer.

It's hard to believe that Audi isn't making enough money on parts when they can sell to body shop's for 20% below list and still make a profit. Domestic parts are dicounted 30% from the dealer.

[SOAB]

Originally posted by rylan v
Some shops with do what is called matrix pricing. This is a format for charging above and beyond what is fair to the consumer.

It's hard to believe that Audi isn't making enough money on parts when they can sell to body shop's for 20% below list and still make a profit. Domestic parts are dicounted 30% from the dealer.

what i think is funny is when customers come into a shop thinking they can dictate what a part should cost.

just because you think a part should cost $5 doesn't make it so.

what makes you think that MSRP provides a good profit margin? we have on average a GPM of less than 30%... that is including the surcharge. do you think a business should only be allowed to bring in 10-15% gross profit? maybe you should rethink your paycheck if you do because i guarantee you that whatever business you own or work for will or should make more than that or else it won't survive.

[Pahnda]

I'm brutal at remembering which threads I've posted in... Hence the 2 week bump :(


Originally posted by cocoabrova


Go to walmart...

Castrol 5-40 syntec 5L is $38.98


I wonder if the dealership has any 5Ls and how much they charge for it... didn't really think to ask. But thanks for the heads up.


Originally posted by cocoabrova


Where did you buy the oil filter at?

At Glenmore Audi. $23 is a good enough price to avoid the pain in the ass ordering online is, in my view.

[tom_9109]

Originally posted by SOAB


what i think is funny is when customers come into a shop thinking they can dictate what a part should cost.

just because you think a part should cost $5 doesn't make it so.

what makes you think that MSRP provides a good profit margin? we have on average a GPM of less than 30%... that is including the surcharge. do you think a business should only be allowed to bring in 10-15% gross profit? maybe you should rethink your paycheck if you do because i guarantee you that whatever business you own or work for will or should make more than that or else it won't survive.

With that logic maybe they should cross out the MSRP on their vehicles and add $5,000. Then we'll see how well they survive.

They only mark parts up because the consumer doesn't know the MSRP.

[R-Audi]

Originally posted by tom_9109


With that logic maybe they should cross out the MSRP on their vehicles and add $5,000. Then we'll see how well they survive.



Actually thats pretty common for any high demand limited production cars in the first year or two.

[2002civic]

Originally posted by tom_9109


With that logic maybe they should cross out the MSRP on their vehicles and add $5,000. Then we'll see how well they survive.

They only mark parts up because the consumer doesn't know the MSRP.

Man you are stubborn AND stupid.

[SOAB]

Originally posted by tom_9109


With that logic maybe they should cross out the MSRP on their vehicles and add $5,000. Then we'll see how well they survive.

They only mark parts up because the consumer doesn't know the MSRP.


you are one of those typical customers that think dealers should not be able to make a profit. everyone else in the business world is ok to make money, but car dealerships aren't allowed because they're "crooks".

do you go to a restaurant and tell them that the piece of steak you ordered is only worth $10 and the $30 they are charging is a rediculous price? or a clothing store and tell them that their T-shirt that costs $30 should only cost you $5 because they're not allowed to make a profit...

again, who are you to dictate what a business charges for their product??

[Phenix]

Originally posted by Wrinkly
I can believe it - hence they won't be getting my business. I was recently quoted $1,400 for a timing belt replacement. The parts (to me) were listed at $600 of that. I can get OEM online for $300 (US though, but damn close to par ATM anyway).

Wow, what engine do you have? I got my timing belt changed with all the other accesories done on my v6 tib for 6-700 by the dealership.

[speedog]

Originally posted by tom_9109


With that logic maybe they should cross out the MSRP on their vehicles and add $5,000. Then we'll see how well they survive.

They only mark parts up because the consumer doesn't know the MSRP. What exactly makes you think there is a MSRP on parts/little stuff? Ask any retail shop owner where the money is really made and it's on service and the little stuff. In-laws owned a Honda motorbike dealership for years and what kept them in business certainly wasn't selling motorbikes/sleds/quads - it was all the accessories/parts/little things and service. And trust me, lots of the little stuff doesn't come with MSRP's - no different than the retail shop my wife and I own.

Shop owners marking up parts because the consumer doesn't know the MSRP - that's laughable. More like it's what the marketplace will bear and as a retailer, you always have to be well aware of the point where your markup either keeps those buyers buying or is driving them away down to your competitor. Rest assured tom_9109 - I would say that at least 1/3 to 1/2 if not more of my inventory does not come with any MSRP.

[tom_9109]

Originally posted by 2002civic


Man you are stubborn AND stupid.

I'm not sure where you get off calling stupid, its not like my position is unfounded.





Originally posted by speedog
What exactly makes you think there is a MSRP on parts/little stuff?

I don't think there is a MSRP on parts. I know there is. I have appraisal software that contains the MSRP for almost every part on almost every vehicle from every manufacturer. The prices are correct and updated each and every month.

Further, these dealers who sell the parts to an individual at an amount marked up above MSRP have no trouble selling it to the body shops 20% under MSRP and still make money. So how fair is it that they will sell it to one group significantly cheaper than another?

[FiveFreshFish]

Originally posted by Pahnda
At Glenmore Audi. $23 is a good enough price to avoid the pain in the ass ordering online is, in my view.

Ask if they sell in bulk. I bought a six-pack for $90 a few years ago.

[speedog]

Originally posted by tom_9109
I don't think there is a MSRP on parts. I know there is. I have appraisal software that contains the MSRP for almost every part on almost every vehicle from every manufacturer. The prices are correct and updated each and every month.

Further, these dealers who sell the parts to an individual at an amount marked up above MSRP have no trouble selling it to the body shops 20% under MSRP and still make money. So how fair is it that they will sell it to one group significantly cheaper than another? Even if there is MSRP's as you suggest, it is up to the manufacturer's of these piece parts to enforce retailers to keep their prices to MSRP. So don't lay blame at the retailers - lay it at the manufacturer's feet. Just know that you are not aware of what written and written agreements are in place farther up the parts food chain.

Secondly, the market for body shops versus joe blow consumer - it is what it is. If the body shops are in cozy with the dealers, then so it is - possibly the dealers do more regular and bulk business with the body shops then with joe blow public. Is it about fairness - nope, I don't think so. Any of us should be well aware that the highest price will be charged to the end user and anywhere up the chain closer to the manufacturer, the price decreases. A lot of this has do strictly with volume plus also decades old business practices.

Now I suppose you could start up your own dealership and start selling to the consumer at the same rates you're selling to body shops, but I suspect that in very short order you'd find your sources refusing to sell to you because of you seriously undercutting your competition. That's just the way things are in the retail business - manufacturer's can and often do set the rules for retailers of their products and those rules are often different depending on who is buying the product from that retailer. As a manufacturer or even a dealer, a steady income stream that can move more product at a lower profit margin is probably as valuable (if not more) as an unpredictable income stream that relies upon joe blow public.

[SOAB]

Originally posted by tom_9109


Further, these dealers who sell the parts to an individual at an amount marked up above MSRP have no trouble selling it to the body shops 20% under MSRP and still make money. So how fair is it that they will sell it to one group significantly cheaper than another?

you keep going on and on about MSRP this, MSRP that. do you know what MSRP stands for? manufacturer SUGGESTED retail price. dealers are free to sell their product at whatever price they deem profitable without pricing themself out of the market. just because YOU don't agree with it doesn't mean it's wrong.

why the hell should a dealer give a guy like YOU a cheap price when you come in to buy an oil filter once a year? what makes you think you deserve the discount? because you're special?

dealers have long-term business relationships with aftermarket and bodyshops. also, they have long-term relationships with retail customers that spend WAY more than $30 a year at the business.

P.S. yes, you are stupid and your position is way out in left field. you're not entitled to anything in this world. that includes a discount at a dealer.

[Redlyne_mr2]

Retail parts sales to Joe Blow off the street are an extremely low priority. It wouldn't hurt them at all if people stopped buying parts from them because of inflated pricing. They make their money off the sales department, service department and account clients (bodyshops, independent shops etc.) It's actually almost a burden having to sell parts to the general public.

[heavyD]

Originally posted by Redlyne_mr2
Retail parts sales to Joe Blow off the street are an extremely low priority. It wouldn't hurt them at all if people stopped buying parts from them because of inflated pricing. They make their money off the sales department, service department and account clients (bodyshops, independent shops etc.) It's actually almost a burden having to sell parts to the general public.

It's still part of the business and there's a reason that smart dealers advertise and sell cheap (which is relative because the markup is so high on parts that they are still making $$$) over the internet. It's good business and easy money especially compared with selling something like retail electronics. Customer orders part, you order it in and they buy it and it's done. Since there are no returns on electronic parts you rarely have to deal with returns. Shops that treat it like a burden will never maximize their earnings potential.

[tom_9109]

I'm not going to argue it anymore.

My point is :

Some dealers significantly overcharge. As a consumer be diligent and aware that you may be being given an inflated price and should shop around for your parts even if you trust a brand or dealer.


To anyone that calls me stupid for having this point, feel free to go buy parts and never question if you're overpaying. I'll keep hundreds extra in my pocket paying what things are supposed to be worth and you'll pay for the dealer principals speed boat and vacations.

[Redlyne_mr2]

Originally posted by heavyD


It's still part of the business and there's a reason that smart dealers advertise and sell cheap (which is relative because the markup is so high on parts that they are still making $$$) over the internet. It's good business and easy money especially compared with selling something like retail electronics. Customer orders part, you order it in and they buy it and it's done. Since there are no returns on electronic parts you rarely have to deal with returns. Shops that treat it like a burden will never maximize their earnings potential.
Yah I don't agree with their philosophy, there are very few well run parts departments in this city unfortunately. :(

[Xtrema]

Originally posted by heavyD


It's still part of the business and there's a reason that smart dealers advertise and sell cheap (which is relative because the markup is so high on parts that they are still making $$$) over the internet. It's good business and easy money especially compared with selling something like retail electronics. Customer orders part, you order it in and they buy it and it's done. Since there are no returns on electronic parts you rarely have to deal with returns. Shops that treat it like a burden will never maximize their earnings potential.

It's still a low margin business which mean you need high volume. The cost of logistic in this town doesn't help to set up an internet parts presence.

Unless you need it right the way, most people know how to get cheap oem parts on the internet anyway.