Local parts stores operate at gross margins of 20% to 40%. Retail
customers pay the higher mark-up. A local store provides local jobs and
has access to many parts when needed in an emergency. Add up all the
fixed costs you can imagine for a local store (rent, utilities, salaries,
local taxes) and divide them by the average gross margin percentage - say
30%. If total expenses are $8,000 then the store must have Total Sales
of ($8000/.3) $$26,667 just to break even. In addition, the average
investment in parts on the shelf can easily be $20,000, so the store
owner is taking a significant financial risk. And profit is, after all,
payment for risk. Buy some more from this guy. He needs you.
Charles E. Edwards, CPA
Virginia Beach, VA
cedwards@pinn.net
On Tue, 22 Aug 1995, W. J. Richard Criswell wrote:
> Ever have your day totally ruined when you learn you were brutally ripped off
>and there is apparently
> nothing to be done about it? I woke up this moring and decided it would be a
>perfect day to give the
> B-GT a through cleaning after the trip to Rendezvous and back and, since I'm
>due for a trip to the
> smog station, a complete tune up would be nice.
>
> Since I didn't plan ahead, and my friendly Moss Distributor does not read
>minds, I will have to obtain
> tune up parts at my local "Discount" Foreign Auto Parts store. Nothing fancy
>you know, just cap,
> rotor, condenser, and points (I did specify HD points) for the distributor;
>spark plugs (Champion), oil
>
> filter (I specified a Wix), and valve cover gasket. Of course this "Foreign
>Parts" store did not stock
> anything other than the spark plugs. But not to fear, all other items are in
>stock at the local
> Automotive Jobbers Supply wherehouse and I can pick them up there.
>
> When I signed the chit, I thought the prices were a little on the steep side
>but I expected to pay a
> premium to be able to have them today! When I got home, I'd had more time to
>reflect on it and so I
> pulled out my Moss price list and did a little comparison shopping. This is
>what I found!
>
> The "Discount" store's retail list came to $90.82!!! My cost was $57.13 (a
>good discount but still...).
> Moss full list was $33.05 and my trade discount would have been somewhat less
>than that!
>
> Well, I promptly called the store and told them I was returning all items.
>They calmly said no, no, no.
> Look at your invoce it's marked "special order." All special orders are
>non-returnable since we don't
> stock them. Special order my aching hinnie! I returned, all items were
>availaable locally and you and
> or the Automotive Jobbers Supply should take them back. He claims that he
>cannot return items he
> doesn't stock to the warehouse and that he can't afford to stock items that
>don't move (I agree, he
> can't). But, I would think that the warehouse would accept returns of items
>they normally stock!
>
> The best I could get out of him was an adjustment to the bill. So I got the
>pleasure of spending my
> time, money and gasoline making this jerks parts run, to say nothing of
>running accross town to his
> place of business only to be ROYALY RIPPED OFF and have to make another trip
>accross town
> tomorrow to get the bill adjusted which will still amount to a rip off!
>
> Some days - it seem like I never learn.....
>
>
>
> Dick :>)
> Vintage Parts & Products
> Have MG will travel
>
>
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