speed shop buying power

[pegasus]

is there such a thing as a speed parts co-op like farmers have for buying seed? so the local speed shops can all get together and increase there buying power.
lets say a set of gears is listed at $100 and when Cincy speed buys it they get 10% off and they sell it to us for $100 making them $10

a co-op would be like Cincy speed, Dayton 5.0, gorges speed, and gearhead performance all get to gather and buy gears and get a 20% discount witch would be the gears they buy would make them $20.

or even a buyers program like rugger has that would just be common best sellers have the program built around applications just as an example a 5.0ho program would be 4.10 gears and 3.73 gears Taylor plug wires and the mighty e303 cam and a ripper shifter. The speed shop would have to buy all the parts at once but would get 25% off the list price

I'm just wondering if speed shops do this kind of thing

[NXcoupe]

Simple answer, not really. There are 'warehouses' that supposedly give you the buying power and about 12 years ago it worked just like you described. However, now you get places like summit that buy 1000 parts to save 10% over their normal cost. Lets say their normal cost is 100, and they get them for 90. Well, then they put them up for 102.99, and sell the crap out of them. The little guy still has to pay 100 for them, so he makes 2.99 above shipping. I sell supercharger kits and make 100 bucks on a 5000.00 sale, it sucks. this business is not making anyone rich except summit, jegs and now american muscle. They started their business with 3 million dollars, did buy ins, buy a 100 of a part at a time, and do the same exact shit summit does. I would like to see it go back to the 90's, when you walked into a speed shop, talked to the guy, hung out with other guys that stopped by to get parts or get their car worked on, etc. It was a lot more fun and a decent living.
What you brought up is the very reason most shops have nothing in stock, as we can't stock it as the prices change so much up and down. Say I buy a shifter for 150, then the next month summit has it on special for 99 bucks. Every guy on the block is going to walk through my door and want me to walmart price match the shifter summit has for 99. It can't be done. Best I can do is just keep up as the prices change adjust accordingly and buy from the manufacturer direct on most stuff.
Sorry, didn't mean to ramble.

[pegasus]

no its cool man i just wish you guys could make some more money selling parts you know, its kinda like guns and bows yeah I can run to bass pro or Walmart or even dicks sporting goods and buy firearms/bows for $10-$20 even $50 less or even online but I grew up in a small business and I was taught to buy from small business when possible.

[pegasus]

when i left your shop and was headed home is when i passed buy a feed store with a co-op sign it got me thinking about it

[cobrajoe]

Don't help when shops act like your wasting their time unless your giving them your keys and a blank check.. Personally I would want a repeat customer instead of a one time big coin purchase...:rolleyes:

[NXcoupe]

Yep, and summit gives you that? It's all about price, bottom line. Guys come up with excuses, but that's the major driving force.
And what big coin purchases are you talking about? The blower we make 100 bucks on or the turbo system we make 100 bucks on? All while assuming the risk of handling thousands of dollars in the meantime.
Everyone gets put of by everyone at one time or another. We're people, shit happens. Doubt that was directed at me, but just sayin.

[NXcoupe]

Yep, and summit gives you that? It's all about price, bottom line. Guys come up with excuses, but that's the major driving force.
And what big coin purchases are you talking about? The blower we make 100 bucks on or the turbo system we make 100 bucks on? All while assuming the risk of handling thousands of dollars in the meantime.
Everyone gets put off by everyone at one time or another. We're people, shit happens. Doubt that was directed at me, but just sayin.

[4n_eatr]

Yep, and summit gives you that? It's all about price, bottom line. Guys come up with excuses, but that's the major driving force.
And what big coin purchases are you talking about? The blower we make 100 bucks on or the turbo system we make 100 bucks on? All while assuming the risk of handling thousands of dollars in the meantime.
Everyone gets put off by everyone at one time or another. We're people, shit happens. Doubt that was directed at me, but just sayin.

I'm sure it wasn't. But some shops are always like that. I've been going to Precision Autosports since Jeff was working out of his garage. Now I hear nothing but bad things from them. Last time I went there was when I had my Z28 and did a dyno run and tune and it only made 190rwhp. I was pissed with all the money I spent on that engine, and when I got in it, it fell on its face. I told them to keep the timing bumped up but they set it to stock. They didn't even play with the timing after they set it. And then said they wouldn't look at it again. Now Dayton 5.0 USED to be bad, but I called them a week or so ago and someone called me back FROM HOME on a Saturday to make sure my called got answered and wasn't acting like he was rushed to get off the phone. THAT'S customer service and because of that, they'll be getting my business with my Mustang from now on. Little things like that deter me from ordering things from Summit and Jegs. I don't care if its a little more, it's worth it IMO

[pegasus]

i was just thinking that if all the non jegs and summit shops got together they would be able to beat the snot out of them...its a nice thought any way right?

[cstreu1026]

It's no different than Wal Mart vs. the corner grocery or drug store. Wal Mart can afford to sell at a lower profit margin because they can sell the same products thousands of times over what the little guy can.

[05yellowgt]

Speed shops, and a lot of small businesses are being crushed by big box stores and the internet. This is why Washington is trying to start the whole Internet sales tax thing that is going around now. Speed shops only way to make money now is through labor, be that in the form of wrenching on a car, building a motor, dyno tuning, etc. That is why the cost of labor has gone up because it is the only way to make a dime. They actually have leg up on a lot of other small businesses that don't operate in a business that has the ability to charge for labor or services.

[devous1]

I was going to post up on this earlier but decided to wait. It seems to be the way of the world now. Unfortunately almost everything we purchase comes from a huge generic retail monster with little or no customer service. The small guys are continually getting squeezed out and the giants just continue to accumulate momentum.

We have a specialty moving and storage company, but we do installation and maintenance work as well. I made more per job 10 yrs ago when I first started out than I do now. Our customers are mostly fortune 100 and 250 companies that snatch up all the work, then sub it out and take half the money or more. Now the customers purchase all their major materials to avoid markups and we are left with labor only, and our labor rates over the last 10 yrs have been slowly getting pushed down because of competition and our large customers forcing us into their pricing matrix.

Anymore it is getting increasingly difficult to start up a business in this country. Don't get me wrong, anyone can do it and can be much more successful than I. But it's getting tougher every day. It also seems the govt prefers large corporations, the have specialists for all the govts needs unlike a small mom and pop that has to cover everything.

[1baddlx]

Don't help when shops act like your wasting their time unless your giving them your keys and a blank check.. Personally I would want a repeat customer instead of a one time big coin purchase...:rolleyes:

Exactly I called a local speed shop inquiring on a $20 part and he said ...get it off eBay or something. he is dealer for which part I needed so I call the place that makes what I needed and it costed me 34 instead of twenty .so I came into 6 grand and bought more stuff from the internet because that guy didn't want to help me and this particular place I'm speaking of is very well known here on Sbz.I will defend summit or jegs on this aspect ...when I get a wild hair to buy something in the middle of the night you can call them and spend money.customer service fast shipping and good prices ...no bankers hrs! Open 24/7...and yes I spent all of the money on my car right after that ...

[Adam@S&MMotorsports]

Just out of curiosity which shop was this?


Exactly I called a local speed shop inquiring on a $20 part and he said ...get it off eBay or something. he is dealer for which part I needed so I call the place that makes what I needed and it costed me 34 instead of twenty .so I came into 6 grand and bought more stuff from the internet because that guy didn't want to help me and this particular place I'm speaking of is very well known here on Sbz.I will defend summit or jegs on this aspect ...when I get a wild hair to buy something in the middle of the night you can call them and spend money.customer service fast shipping and good prices ...no bankers hrs! Open 24/7...and yes I spent all of the money on my car right after that ...

[pegasus]

Chill out guys I didn't want this to turn into a bitch fest you know what for every bad experience you can find from a business I could find 100 for summit or jegs I've had summit not only ship to the wrong city but send to the wrong state. I called jegs up and asked if they had a part in stock in the east 11ave store since I was in town anyway it took them an hour to tell me it was on back order the sales guy didn't even say sorry just I don't know what to tell you here's another thing are you going to get the same kind of support from jegs as you would from the small guys I don't think so all jegs is going to do is put it off on some one else here call this number that's only open from 9-5 mon-fri when most of us are miles away from the car or motor or trans ect... Mike stayed after hours to get me taken care of when he could have been chilling at home with his family

[pegasus]

Don't forget the1800 number is open 24hr a day not to help you get your parts but to get your card number I'm not saying I never use the big 2 or even that I never will again but you buy from small business your not just paying for parts you also pay for some one that has your back and there is nothing wrong with a shop making there money from installs most gas stations don't make there money from the sale of fuel they make it from the pop an chips.... I think I just had a Stan from South Park moment woow hello 245 am

[Mista Bone]

Another issue is shipping charges. Summit/Jegs/Tire Rack etc get lower shipping rates due to volume.

After a long rant by cracker, I will ONLY buy from Jegs if I stop in the store off 71, that has only happened once and it was for a tool I'd forgotten to pack while headed to Mid Ohio for an emergency transmission build.

Give the locals a shot. Yes, Craig has said, I can't tough that price get it from Jegs/Summit. But if you need your bottle filled, like the kits Super Shops sold, you got sent to Craig.

I'm a dealer/installer for a Honda Parts company. If I order 1-4 of the part, I get 20% off retail, if I order 5+ I get 25% off. So when I order bearing and seal kits, I order quite a few at a time but there is no way I will order 5+ LSD's at a time at $600 a crack.

Mine you I'm just a hobby guy working from home. Tp prevent getting stuck with a LSD I ask for the cost of it up front went tranny is dropped off for install, the balance when tranny is delivered.

Thanks to Craig, Gene, Gene Jr. @ R&R, Rob @ TPR I've seen both sides of the counter. I prefer to be in the back wrenching :)

[Mista Bone]

Another note to add. Craig was trying to get me some M/T slicks from I guess Keystone, now LCQ (?). The size was listed on a M/T promo flyer I got from Cincy Speed. He tried for weeks to get an answer, nothing.

One weekend while in Delaware, Ohio having lunch with Joe'e and someone I didn't know, Joe'e asked about the slicks. That person made a phone call only to inform me M/T (Avon) never produced that size even though it was on the flyer. All I was told by Joe'e in the person is part of the (Jegs) family.

When I get around to installing gauges in the CRX, I'll stop in on Vine for him to order it, grab a pop and BS a bit.

PS: I once took the boy with me to the speed shop, let him wear the free Jegs hat he got, LOL!

[1baddlx]

Just out of curiosity which shop was this?

Id rather not say but it wasn't yours ....:bigthumb I need to get my car re-tuned would u be interested in doing that?

[Adam@S&MMotorsports]

Id rather not say but it wasn't yours ....:bigthumb I need to get my car re-tuned would u be interested in doing that?

Yes sir just give me a call whenever you are ready.:bigthumb I just wanted to make sure it wasn't me:lol: We can all get busy and overwhelmed but I try not to be a dick and provide the best advise and customer service that I can. Hell my shop phone is my cell number for those emergency calls after hours.

[NXcoupe]

Adam, I've gone to that as well. It gets old coming in and dealing with a bunch of after hours messages that could have been handled as they came in. I try my best to get everything I can to folks as fast as I can. I for one get tired of telling a guy how much a part is and then adding the outrageous shipping we get hammered with on top of it for a cheap part they can just buy and get shipped to them for less. I feel bad doing it. The worst is the one call wonders, catch you at a bad time, call late in the evening and your there trying to get something done, and you don't handle them with your usual service, and then you get badmouthed to anyone that will listen about it. I realized early on it's just not possible to please everyone and haters gonna hate. Lots of people in this world.

[chrisb1961]

I would much rather go to Adam than jegs because I've known him for a long time and would rather support his business than jeg coughlins. The shipping rate is steep unless you can wait for a big order to be placed though so either way its kind of a crap shoot

[Gene]

Summit, Jegs and now Amazon have pretty much destroyed what little margins there were on parts for a shop. I have some pretty solid pricing on import parts through some really good suppliers, but I'm pricing out an exhaust for a friend's BMW and he can get the same stuff from Amazon for $50 less than my COST.

Some of the import parts manufacturers at least have Minimum Advertised Price policies that protect their dealers a little, but you still have people whoring parts out for 10% margins out of their garage...you can't sustain a shop on that kind of margin.

Most performance shops these days have to make their money on the labor side. You can't make it just slinging parts, and it doesn't make sense anymore to inventory items when just about everything is two days shipping away.