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  What's the markup on orig parts???

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Author Topic:   What's the markup on orig parts???
Fastback68
Gearhead

Posts: 1746
From: Sucat, Paranaque, Philippines
Registered: Jul 99

posted 05-23-2002 05:02 AM     Click Here to See the Profile for Fastback68   Click Here to Email Fastback68     Edit/Delete Message   Reply w/Quote
Today I finally met the owner of the Philippines' biggest wholesaler / retailer of old Ford parts. As always I was carrying my catalogue from a well-known American retailer. He took me into his confidence about the prices he pays, some of his suppliers in the US, etc. He even showed me a order he was placing with an OEM supplier. I then bought a bunch of stuff at prices below those in my catalog, and I had so much money left I asked jokingly what he wanted for an original, never-used, Ford replacement '68 grill. I showed him my catalog where a repro part goes for almost $130, and an original is unavailable. He told me he'd sell me the grill at cost. How much? $40!!! I kid you not, and this piece is definitely the real thing. It makes you wonder, doesn't it?
Simon

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Pierre
Gearhead

Posts: 366
From: France
Registered: Apr 2002

posted 05-23-2002 05:46 AM     Click Here to See the Profile for Pierre   Click Here to Email Pierre     Edit/Delete Message   Reply w/Quote
WHAOOOO !!! Best prices here (Europe) are x2 or x3 the average US catalog. Which is why I had to fly over several times and bring back in my suitcases: Panels, gearboxes, heads, Rear ends,........

Wonder what our other collegues accross the world pay

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Fastback68
Gearhead

Posts: 1746
From: Sucat, Paranaque, Philippines
Registered: Jul 99

posted 05-23-2002 06:53 AM     Click Here to See the Profile for Fastback68   Click Here to Email Fastback68     Edit/Delete Message   Reply w/Quote
Yes, I know how you feel Pierre. England is ridiculous!
I should have mentioned that this guy RETAILS original 65-66 grilles for $70. (I didn't want to ask what the regular retail was on a '68!)
Of course, labour costs here are a fraction of the US, but the guy is shipping this stuff in from America, putting on an average 80% markup (on OEM parts) and still making a profit at prices way below the famous American catalogue I mentioned.

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Pierre
Gearhead

Posts: 366
From: France
Registered: Apr 2002

posted 05-23-2002 07:18 AM     Click Here to See the Profile for Pierre   Click Here to Email Pierre     Edit/Delete Message   Reply w/Quote
Do we know who Ford's original spare parts stocks were sold to ? Was it one big wholesale distributor or was it scatered accross several ?
What about the patents & rights for remanufacturing these parts ? Does "original" mean: "made by Ford" or "licenced by Ford"

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68 S-code GT
Gearhead

Posts: 1129
From: Sayreville, NJ, US
Registered: Mar 2000

posted 05-23-2002 07:49 AM     Click Here to See the Profile for 68 S-code GT   Click Here to Email 68 S-code GT     Edit/Delete Message   Reply w/Quote
Do you know and can you divulge his US supplier?

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RICKS
Gearhead

Posts: 259
From: Ocala, FL
Registered: Mar 2001

posted 05-23-2002 09:56 AM     Click Here to See the Profile for RICKS   Click Here to Email RICKS     Edit/Delete Message   Reply w/Quote
Simon, He likely bought the grilles on an "as available" basis from a Ford contracted "material recovery" outfit via closed online auction. These are goods that were returned to centralized locations from the Ford dealer network and also sometimes larger lots from Ford distribution depots as dead or stale or blemished stock from the Ford Parts & Service division. There's a TON of stuff that's just floating around in the "system" of Ford, that finds it's way either to guys like you found or the crusher. The stuff goes at auction for peanuts, because there's some risk involved. Blemishes, boxes with the right part #, but the wrong part inside, take-off's, etc.etc. But anyways, that's my theory of where somebody in the Phillipines would come up with $40 Ford grilles that are obsolete. He's got a "connection" that allows him to purchase stuff that's found floating out there in space within the vast Ford parts network. I was able to snag a couple '68 grilles last year for $45/each at auction, no biggy, but for people in the CATALOG business, there's no way you can catalog items that you do not have a readily replenishable supply of. Such merchandise is more "black market" then anything else, unless you get lucky and can buy up a truckload of a part that will last you for more than a year. Back when Ford did the big "OBSOLETE EVERYTHING" fiasco a couple years ago, there were huge invitation-only offerings at auction as Ford liquidated and cleared it out of their system, and I bought up every last thing I could get my hands on at really good prices (Seems that this Phillipines dealer must have also scored some loot). Today, some stuff shows up one-sie two-sie at auction, which isn't worth my time. It's a trickle, and larger catalog companies can't bother putting a listing in a catalog they print tens of thousands of copies of just for one or two pieces of an odd item they managed to skim at auction cheap. The part would already be sold before the catalog ever made it off the press. It would be like Wal-Mart purchasers scouring Flea Markets to find one single authentic 1985 cabbage patch doll that they intend to market in every Sunday newspaper flier around the country. All that's left in the Ford system is dribs and drabs, and the smaller swap-meet vendors are the typical takers. Anyways, his prices are anomalies, once his stocks of those grilles are gone, they're likely gone forever (unless there's a crooked Ford licenced tooling manufacturer back-dooring stuff overseas). I've got no idea how many Mustang parts maybe stockpiled at a Ford recylcer/recoverer OUTSIDE the U.S.. Could be scary!, and that also may be a source for this dealer's parts. The margin on currenly available Ford parts is no mystery, Dealer cost is 40% off of suggested list. It's been that way forever. So, what you're looking at is either recovered material being liquidated from the Ford system (either U.S., or outside U.S.), or it's material from a rogue manufacturer that has the tooling and is producing and "back-door" selling the stuff abroad.

[This message has been edited by RICKS (edited 05-23-2002).]

[This message has been edited by RICKS (edited 05-23-2002).]

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Fastback68
Gearhead

Posts: 1746
From: Sucat, Paranaque, Philippines
Registered: Jul 99

posted 05-23-2002 11:40 AM     Click Here to See the Profile for Fastback68   Click Here to Email Fastback68     Edit/Delete Message   Reply w/Quote
Good answer Ricks. And I'm sure you're right!

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Fastymz
Moderator

Posts: 12015
From: Reno Nv USA MEM#1240
Registered: Apr 2001

posted 05-23-2002 04:35 PM     Click Here to See the Profile for Fastymz   Click Here to Email Fastymz     Edit/Delete Message   Reply w/Quote
Very good answer Rick.40% mark up is that high.Heck look at furniture,some place are getting a 100-200% mark up.
But it's all about what some one will pay,And can pay.Running a small business myself I know that you have to make some kind of mark up.To pay your bills and keep the doors open.

SCOOP

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65 coupe,351w,C4,Big Boss 429 hood scoop,Crager SS,Black Suede.

It maybe slow,but it's not fast either.:)

https://mustangsandmore.com/ubb/Fastymz.html

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mustangs68
Moderator

Posts: 18183
From: Hampton,Virginia,USA MCA#39406 M&M #12
Registered: May 99

posted 05-23-2002 06:06 PM     Click Here to See the Profile for mustangs68   Click Here to Email mustangs68     Edit/Delete Message   Reply w/Quote
You know everytime Ricks Post I learn something new..Please post more
Sam

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