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Discussion Starter #1
Does anyone have an idea what margin dealer makes as a % of list price on JCW acessories such as seats, carbon gearshit and handrake bits?

Any one in the know

Cheers

Tobes
 

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A good idea

Remember margin is required to cover all costs (Development, manufacturing, Stock, distribution, handling & all overheads etc) and to provide a profit for the longterm success of any company.
 

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A good idea

Remember margin is required to cover all costs (Development, manufacturing, Stock, distribution, handling & all overheads etc) and to provide a profit for the longterm success of any company.
Very true Alan, thats why even though I have the list and the costs, I don't use that to try and bash them down any more, as I know I get a good price from my dealers with a 10-15% discount:)

And you can bet that some of the items never see a full return for the investment to develop them, surprise MINI makes so many things for us to buy, I imagine is written off as part of the brand marketing costs, selling it as a lifestyle and not just a car;)
 

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Very true Alan, thats why even though I have the list and the costs, I don't use that to try and bash them down any more, as I know I get a good price from my dealers with a 10-15% discount:)

And you can bet that some of the items never see a full return for the investment to develop them, surprise MINI makes so many things for us to buy, I imagine is written off as part of the brand marketing costs, selling it as a lifestyle and not just a car;)
Being in the engineering & development side of a company I know how much it costs to set things up, having spent over 20 years in the service side of a company I also know how much it costs to support customers. having spent the last 5 years on handling warranty and redesign activities I also know how much that area costs.

I am happy with my dealer discounts both on here and at my local dealer - of course I push harder sometimes when I know that there is room for negotiation.

Everyone has to make a living for their long term success - something that the supermarkets seem to forget with their suppliers
 

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Discussion Starter #6
Looking at cost for these parts as a sweetner in a PX deal - not trying to rob anyone!

Most retailiers mark up 100% on cost price
 

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Looking at cost for these parts as a sweetner in a PX deal - not trying to rob anyone!

Most retailiers mark up 100% on cost price
unfortunately, thats what the public thinks. :rolleyes:. Might be true for clothes and fine wine, in pharmacy / toiletries, its about 25-33 %
 

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Discussion Starter #8
My wife is a dept store buyer 100% markup on cost is typical for most departmenrts in store bar electricals and so 50% profit margin on sale price is typical

Thats before any mark down staff costs etc
 

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Looking at cost for these parts as a sweetner in a PX deal - not trying to rob anyone!

Most retailiers mark up 100% on cost price
Lets just say that might be true in consumables, but its not in car accessories.

Its certainly not true in my line of work either.

Where you find 100% margins or even 60% margins is where there is a greater write off cost of the goods, in other words products which expire before they can all be sold, such as food or clothes. Again those margins are there for a reason;)
 

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Being in the engineering & development side of a company I know how much it costs to set things up, having spent over 20 years in the service side of a company I also know how much it costs to support customers. having spent the last 5 years on handling warranty and redesign activities I also know how much that area costs.

I am happy with my dealer discounts both on here and at my local dealer - of course I push harder sometimes when I know that there is room for negotiation.

Everyone has to make a living for their long term success - something that the supermarkets seem to forget with their suppliers
Well thats also true for our company mate, and also explains why we're thinking the same on this subject.

People soon forget the overheads and investment to get something from drawing board to the shelf.
 

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My wife is a dept store buyer 100% markup on cost is typical for most departmenrts in store bar electricals and so 50% profit margin on sale price is typical

Thats before any mark down staff costs etc
Don't take this the wrong way, but buyers, they live in their own world:p

Trust me, I used to be one before I moved to the Design and Development side of a supplying company and then learnt that my suppliers do not make the margins that I thought as a buyer;)
 

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Discussion Starter #12
I do take that the wrong way

My Wife is an experienced buyer been in the biz for over 15 years. Works for the most profitable dept store in Britain and has very good, long established relationships with her suppliers beacuse the firm pays promptly.

I am talking about the margins a good retailer should make on selling products to the customer in order to cover overheads and other costs.

For ancilliary products like JCW accessories the dealer will not be making just 10%. A Carbon bonnet scoop does not cost £180 to make!
 

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I do take that the wrong way

My Wife is an experienced buyer been in the biz for over 15 years. Works for the most profitable dept store in Britain and has very good, long established relationships with her suppliers beacuse the firm pays promptly.

I am talking about the margins a good retailer should make on selling products to the customer in order to cover overheads and other costs.

For ancilliary products like JCW accessories the dealer will not be making just 10%. A Carbon bonnet scoop does not cost £180 to make!
Well in that case I am sorry, it wasn't meant to cause any offence, it was the fact that I used to live behind those rose tinted buyer glasses, and now I don't as I understand how products come to market and are delivered to buyers for them to select as that is my job.

But obviously I'm not able to add anything to this so I'll just go and leave you to it, taking my cost sheet with me.
 

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Rocking the F57
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The actual dealer margin on the JCW interior bits is quite low. Same goes for accessories in general... If your dealer is willing to offer you 10% (if not call Woodmans), you're already getting a pretty good deal.
 

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Discussion Starter #15
Appreciate your response Rakey

You 're safe ......I wont send my wife after you after all! Not that shes agressive in any way!

She'd just bore you senseless quoting margins

Wouldnt wish that fate upon you mate!

Cheers

Tobes
 

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R.I.P MINI2
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I am talking about the margins a good retailer should make on selling products to the customer in order to cover overheads and other costs.

For ancilliary products like JCW accessories the dealer will not be making just 10%. A Carbon bonnet scoop does not cost £180 to make!
Franchised car dealerships aren't retailers in the true sense of the word though, as they do not have the luxury of choosing who to buy the goods they sell from.

Wholesale prices are dictated by the manufacturer, as all the development, handling and distribution costs are met by them, not the dealerships. The manufacturers make their profit selling accessories to the dealerships, who then make a very small profit selling them on to consumers.

They also dictate stock levels. Dealerships cannot send unsold stock back, and cannot refuse to stock slow-selling items they do not want.

Your wife may well be the most experienced buyer in the world, but her experience has absolutely no relevance in this instance.

(And before you ask, yes, I know what margins the dealerships make as well ;) )
 

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Discussion Starter #17
I never said what she did had any relevance to a car dealership!

Thanks for your input
 

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I never said what she did had any relevance to a car dealership!
True, you have never used those exact words, but purely by the number of times you have mentioned her job you have implied that she knows everything there is to know about retailers buying from wholesalers, whereas clearly she does not in the case of dealerships buying parts/accessories from manufacturers.

Thanks for your input
You're very welcome :D

Maybe now that we've cleared that up somebody may actually give you the answer to your original question...

...although that person clearly will not be me, Rakey, Snowie or minicabrio! :p
 
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