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Old 18-01-2015, 16:12   #46
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Re: Predatory Volvo Parts Pricing

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Originally Posted by belizesailor View Post
............... By creating this thread I am hoping to have at least a small impact on the free market system...................
You still believe in Santa Clause and the Easter Bunny, right? Any fool can start a thread on a web forum. It means nothing.
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Old 18-01-2015, 16:15   #47
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Re: Predatory Volvo Parts Pricing

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[I]..... German bearings foe a Japanese engine?
Let's get one thing straight. Not all Volvo engines are based on a Japanese block. Volvo makes many of its own engines.
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Old 18-01-2015, 16:28   #48
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Re: Predatory Volvo Parts Pricing

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You still believe in Santa Clause and the Easter Bunny, right? Any fool can start a thread on a web forum. It means nothing.
So why are you wasting your time here?
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Old 18-01-2015, 16:43   #49
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Re: Predatory Volvo Parts Pricing

To be fair to Volvo, they do make the excellent Volvo stern seals, and sell them for a reasonable price. Though now that Radice have got into the the game and make the (arguably) better Radice seal it will be interesting to see what happens.
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Old 18-01-2015, 16:49   #50
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Re: Predatory Volvo Parts Pricing

It would be a great idea to offer centralized "compare and match" web site of all the various marine engine parts and doodahs and their exact non-marine equivalents. I would contribute with my Fram oil filter for my Universal 5432 which I got at Walmart for $3.49. Our local Universal dealer sells same OEM filter for $20+ just because the outside is painted with Universal logo. I'll bet you Kubota prices it somewhere in between.
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Old 18-01-2015, 17:00   #51
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Re: Predatory Volvo Parts Pricing

I suspect that starters have such a huge premium markup because they are an important safety item in a boat, as a mechanic would not want to 'take a chance' on anything but the OEM replacement. Maybe like a battery for a EPRIB being 100x times more expensive than one for an mp3 player, when they might be exactly the same. When the law requires OEM parts, and then it isn't a free market anymore.
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Old 18-01-2015, 17:05   #52
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Re: Predatory Volvo Parts Pricing

Interesting thread.

If you guys think their prices are predatory then you have no idea what "predatory pricing" is.

Just sayin.

Predatory pricing - Wikipedia, the free encyclopedia
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Old 18-01-2015, 17:34   #53
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Re: Predatory Volvo Parts Pricing

Sad, isn't it. It is called capitalism. Innovation, competition should bring about better outcomes, but an important feature of capitalism that contributors seemed to have forgotten is that cornering a market and charging what the market can withstand is also a basic feature. It happens in most supermarkets and service outlets. Groceries, products, insurance, brokerage, health services etc. Sometimes called avarice or greed.
Caveat emptor
Currently many schools teach "optimization" as a component of senior mathematics in which the aim is to maximise profit/investment ratio. They have the statistics to make it all work. The client is the bunny.
You can change that data base by making a lot of noise, but they are usually well ahead of you.
I wonder how many boats are floating around due to these practices by the owners. Not that that makes it ethical!
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Old 18-01-2015, 18:01   #54
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Re: Predatory Volvo Parts Pricing

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Originally Posted by Island Time O25 View Post
It would be a great idea to offer centralized "compare and match" web site of all the various marine engine parts and doodahs and their exact non-marine equivalents. I would contribute with my Fram oil filter for my Universal 5432 which I got at Walmart for $3.49. Our local Universal dealer sells same OEM filter for $20+ just because the outside is painted with Universal logo. I'll bet you Kubota prices it somewhere in between.
Fram is regarded by many as one of the worst oil filters on the market. I use WIX filters from an auto parts store.
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Old 18-01-2015, 18:37   #55
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Re: Predatory Volvo Parts Pricing

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Originally Posted by travellerw View Post
Alright I will chime in..

Last week I was looking for some mixing elbow gaskets to carry as spares. Figured it would be pretty simple to find them on the Internet and have them shipped (didn't need them right away). Turned out they were impossible to find on the net.

So I call up a local Volvo Penta dealer here in Alberta. Only to be told "No I can't sell you that part, we are not allowed to sell Diesel parts, only gasoline parts". What the hell do you mean, you are an authorized Volvo Penta dealer. Nope sorry only 1 shop in Alberta can sell Diesel parts and they are located in a smaller town in Northern Alberta. Crazy crap.. 2 cities of 1.5 million people and there are no dealers that can sell Volvo Penta Diesel parts.

So $22 for a crappy $0.50 graphite gasket.. Just shake my head..
Have you considered shopping on the Internet?
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Old 18-01-2015, 18:40   #56
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Re: Predatory Volvo Parts Pricing

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Quite probably not the same. However for $86 he could buy ten of them and still be way ahead of the game.
Until he finds himself drifting towards the rocks and needs to swap out his $86 starter!
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Old 18-01-2015, 18:41   #57
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Re: Predatory Volvo Parts Pricing

If you worked in a large enterprise you would understand that there is little nefarious about the pricing structure for spare parts.
Pricing is usually based on a number of factors including cost of goods, inventory turnover rate, licensing issues, and allocation of overhead expenses. It all goes in a formula and out comes the price.
The person making the decision on retail pricing of spares is usually an accountant who knows nothing about the item itself, the price of an equivalent product, or anything related to the real world. Neither is much thought given to the opinion of the consumer or trying to get market share. Not that they particularly view the market as captive, as in, "they have to buy from us." That consideration is not in the formulas which are based on throughput accounting, resource-based accounting or some other methodology chosen by management. Sometimes it leads to pricing which appears crazy to us consumers, but is actually rationally based.
Everyone has their little fiefdom, and no one looks at the big picture because there is no reward to do so.
Also the parts sector of the business, especially for legacy products (those which are no longer being sold new) is not exactly the hot spot which the best and brightest seek to be working in.
Then you also have a price elasticity issue. Would you rather sell 1 starter for $800 or ten starters for $86? what will maximize your profit?
Why should Volvo or anyone else care about users of legacy products? Why should Volvo care about you, who owns a decades old product? They never think you will pony up for a new Volvo Penta D1-30. They would rather spend their efforts courting OEM, the builders. Yes, it is a short-sighted view, but, again, the larger companies do not foster long-term planning in their employees. It is, "how was last quarter's performance?"
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Old 18-01-2015, 18:58   #58
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Re: Predatory Volvo Parts Pricing

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Fram is regarded by many as one of the worst oil filters on the market. I use WIX filters from an auto parts store.
What, it's not bluewater capable?

At $3.49 a pop I can afford to keep a dozen on board, change them monthly and still come out ahead of the Universal one.

I believe that basically when the industry engages in wholesale fleecing of its customer base it shoots itself in the foot the way MaBell was doing when they had a lock on the home telephone market. By charging $800 for a $40 item it prevents expansion of its customer base and its further growth. How many more people would get into boating and boat ownership if everyone in the industry did not think of its customers as sheeps to fleece mercilessly but as customer base to expand? We all lament that the boats will never become like cars numberwise. And part of the reasons is that the industry treats boat ownership as the auto industry treated automobile ownership in pre-Henry Ford era.
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Old 18-01-2015, 18:59   #59
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Re: Predatory Volvo Parts Pricing

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Originally Posted by belizesailor View Post
Inventory management is certainly major hassle and expense, but all retailers have that isssue to deal with. Volvo,as a large retailer, should in fact be at an advantage due to economies of scale and thus have a lower inventory management cost per unit not 600% higher.
Volvo is a manufacturer, not a retailer. They do sell replacement and repair parts through their dealers. That's not really what we think of when we think of retailers. Walmart is a "retailer".

There are no "economies of scale", the market for repair parts is miniscule compared to flat screen TVs or IPads.
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Old 18-01-2015, 19:00   #60
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Re: Predatory Volvo Parts Pricing

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What, it's not bluewater capable?

At $3.49 a pop I can afford to keep a dozen on board, change them monthly and still come out ahead of the Universal one..
Until one rusts through or bursts and lets all the oil out of your engine.
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