Predatory Volvo Parts Pricing

[skipmac]

Originally Posted by rwidman

You have to look no further than the thread title "Predatory Volvo Parts Pricing"

I don't see that as criticizing Volvo's right to charge a high price. It merely expresses the OP's opinion on what Volvo does, not their right to do it.

I still see nothing in that phrase or any post in the thread that in any way says Volvo should not be allowed to charge what they want. Not one post that said Volvo pricing should be made illegal or regulated in any way.

I completely, 100% support the right of any company to make a profit. I do not object to any company making a large profit, as much profit as they legally can. I am in sales and my job is to maximize profit on what I sell.

All that being said I reserve the right to decide prices from a company are too high and unreasonable for what they are selling and to take my business elsewhere.

[mark maulden]

For starters/alternators/motors, they can usually be repaired. Find a good rebuild shop. A good rebuilder that has been around awhile probably has parts in the junk bin. Take yours apart yourself and get familiar with it. Often all starters need is a new set of brushes and commutator clean up. Solenoids are easy to replace....

[rognvald]

"Volvo can charge anything they want for their parts. And I have not seen a single post criticizing their right do so or their right to make a profit."



The title of the discussion says it all. Good luck and good sailing.

[DougR]

Always fun reading the Volvo bashing in this forum, although some of the statements are pure BS......Example...someone stated in this very thread that the Sea water impeller for the D2-55 engine retails for $80.00 US. Don't know where that might be, but if you go to "Marine Parts Express" (VP dealer in Maine), they will sell them all day for $39.34, about a buck less than VP list price. How can that be??

Big stink about water pump seals costing $12 or $15 dollars. When I rebuild the seawater pump on my 4-108 I go to the local bearing shop for seals...I can get junk for $3.00 but if I get a seal with a stainless steel spring, guess what....$ 15.00!
Same goes for bearings....yep, there are Chinese bearings and then there are German bearings. You pay your money and you cross your fingers.

DougR

[belizesailor]

Originally Posted by rognvald

How dare Volvo charge such predatory high prices! Don't they know that corporations should provide parts to struggling sailors at little or no profit? Don't they realize that multi-billion dollar businesses should not seek evil profits but provide a social service to its customers? In a free market, consumers have the ability to exercise their buying power from a number of sources as others have demonstrated above. If you want once price shopping, go to Cuba where a $16,000 dollar car costs $45,000. and the average Cuban makes $23.00 per month. Otherwise, remember the Latin admonition: Caveat Emptor--Let the buyer beware.

That of course is taking it to a silly extreme.

I'm a capitalist and can afford to live this lifestyle because of past profits. There is absolutely nothing "evil" , "good", fair", "unfair" about profits, they are simply a number based on market parameters. However, there are appropriate and inappropriate business practices (some of these practices are codified as illegal, some not). When a business adds no value to its customers and just uses manipulative practices to extract profits than that businesss is a good target to be out competed in the free market. I find it personally annoying to be manipulated and would be ashamed to be CEO of such an entity which could not produce solid financial performance thru any other means.

By creating this thread I am hoping to have at least a small impact on the free market system. Someone more motivated might even start a business to take advantage of this obvious market inequity and bring true value to their customers while still maintaining a strong profit margin (...Google the story of how NetFlix got started for an example).

[rognvald]

Originally Posted by belizesailor

That of course is taking it to a silly extreme.

I'm a capitalist and can afford to live this lifestyle because of past profits. There is absolutely nothing "evil" , "good", fair", "unfair" about profits, they are simply a number based on market parameters. However, there are appropriate and inappropriate business practices (some of these practices are codified as illegal, some not). When a business adds no value to its customers and just uses manipulative practices to extract profits than that businesss is a good target to be out competed in the free market. I find it personally annoying to be manipulated and would be ashamed to be CEO of such an entity which could not produce solid financial performance thru any other means.

By creating this thread I am hoping to have at least a small impact on the free market system. Someone more motivated might even start a business to take advantage of this obvious market inequity and bring true value to their customers while still maintaining a strong profit margin (...Google the story of how NetFlix got started for an example).

Silly extreme? It is no more absurd than the concept of predatory pricing. And, if you missed what in literary circles is called irony/sarcasm, I'm sorry. So, when you say above that a business uses "manipulative practices to extract profits," your statement is an admission that you know nothing about free market capitalism. Then, when you remark that you would be "ashamed to be a CEO of such an entity" you must realize that no successful corporation would ever hire you as a CEO with that mentality. Perhaps a job in government as a civil servant, but certainly no successful corporation. People either believe in free market capitalism or they do not. There is no middle ground. For the students of History among us they know that were it not for the Robber Barons in the USA(Rockefeller, Carnagie, Dupont, Ford, Kennedy, etc.), there would have been no American Industrial Revolution or the American Superpower that was created during and after WWI. On the contrary, the demise of the Soviet Empire with Gorbachev and the growth of China today is a direct result of the failed principles of Marxism and the strength of free market capitalism. You can't have your cake and eat it too . . . unless, of course, you're a magician. Good luck and good sailing.

[belizesailor]

Originally Posted by DougR

...

Big stink about water pump seals costing $12 or $15 dollars. When I rebuild the seawater pump on my 4-108 I go to the local bearing shop for seals...I can get junk for $3.00 but if I get a seal with a stainless steel spring, guess what....$ 15.00!
Same goes for bearings....yep, there are Chinese bearings and then there are German bearings. You pay your money and you cross your fingers.

DougR

The seal example I gave earlier is another case where Volvo did not cover their tracks very well. I was able to take an original Volvo seal to a local shop and buy exactly the same seal (same brand & model number) for a fraction of Volvo price. Not a case of buying cheap junk to replace a higher quality part.

[El Pinguino]

Many years ago a friend, who was at the time Australasian manager of Twin Disc, told me why spare parts were so dear. First reason was that $$$$$ worth of inventory could sit on the shelf for years gathering dust, second reason was that anything containing rubber has to be junked after x years as the rubber perishes over time ( obviously nobody told Volvo that was happening to their replacement FW circ pumps for the MD17D ) .

Re part numbers... I have been using Mann filters on my Volvo for quite a few years ... the first time I bought one the Mann man got out his 'big book' .... contained part number matching info for every filter in the known universe.

[El Pinguino]

This can also work the other way on occasion.... I would normally use Rimula X but found that I could get exactly the same oil, with the same specs from the same refinery in Scania branded 20 litre drums, from the local Scania dealership far cheaper than 20 litres with the Shell brand down the road.

[belizesailor]

Originally Posted by rognvald

Silly extreme? .... failed principles of Marxism and the strength of free market capitalism. You can't have your cake and eat it too . . . unless, of course, you're a magician. Good luck and good sailing.

Debating the relative merits of captialism and Marxism is way beyond the scope of this thread, but if you feel philosophically obligated to pay 600% over retail market value for a starter, or any other part, let me know...I'll be happy to provide the value-added service of quelling your sociopolitical angst at those rates. Free shipping included! ;-)

[bcboomer]

Same goes for bearings....yep, there are Chinese bearings and then there are German bearings. You pay your money and you cross your fingers.

German bearings foe a Japanese engine?

[belizesailor]

Originally Posted by mark maulden

For starters/alternators/motors, they can usually be repaired. Find a good rebuild shop. A good rebuilder that has been around awhile probably has parts in the junk bin. Take yours apart yourself and get familiar with it. Often all starters need is a new set of brushes and commutator clean up. Solenoids are easy to replace....

Did some more testing and tore mine down today in fact (ah the crusing life...rebuilding starter on a nice Sunday day...). A bit of cleaning and the starter motor spins now. Though the field windings are a bit suspect so I dont think it is turning at full strength (didnt actually re-install it to test crank). Solenoid is not engaging...think the windings are shot.

I plan to buy a new one to install and check into getting the old one rebuilt as a spare. At a total cost of probably under $200 for both I still come in 4x under Volvo prices and have a spare to boot.

Free market in action.

[belizesailor]

Originally Posted by El Pinguino

Many years ago a friend, who was at the time Australasian manager of Twin Disc, told me why spare parts were so dear. First reason was that $$$$$ worth of inventory could sit on the shelf for years gathering dust, second reason was that anything containing rubber has to be junked after x years as the rubber perishes over time ....

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.

[El Pinguino]

Originally Posted by belizesailor

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.

Totally agree but there is a difference between $500 worth of beans which you turn over once a week at 5% markup a time and having an exhaust elbow thingo on the shelf for 2 years.

Speaking of which I bought one of them in NZ a few months ago from the local Volvo man ... 7 days delivery ex Holland... seems they may have centralised inventory these days for some stuff.

[a64pilot]

Originally Posted by El Pinguino

Totally agree but there is a difference between $500 worth of beans which you turn over once a week at 5% markup a time and having an exhaust elbow thingo on the shelf for 2 years.



Speaking of which I bought one of them in NZ a few months ago from the local Volvo man ... 7 days delivery ex Holland... seems they may have centralised inventory these days for some stuff.

Your assuming the stocking dealer is the one who get the 500% markup, I don't think that's likely.


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