Sure rebuilders get a discount.
Sometimes it is a very big discount.
While with Borg Warner Automotive Parts Division I sold clutch and
pressure plate parts to rebuilders at huge discounts. They bought by the
truck load, pallet load, 55 gallon drum and by the thousand lots.
Unless the rebuilders are on a straight to the factory warehouse parts
contract the parts get inflated with every step, importer, distributor,
mfg. or sales rep, local warehouse so in the final "system analyst"
terminology ........ they ain't that cheap.
Each level of distribution or marketing has 2.5 children at home needing
shoes and school supplies.
Its the American way, let everybody make a little money.
I, for one would rather sell and ship parts that I could get in abundance
rather than buy and install parts.
There are many limitations and expenses to manufacturing, building,
rebuilding that are hidden from public view but those matching Social
Security Taxes 7.+ %, Federal 1.8% and State Unemployment tax 3.7%,
Structure rental, Structure Insurance, Utilities, Solvents, Shipping
Supplies, Inventory expenses in tracking, storing and then that giant
Advertising in the Yellow Pages rivals the local long distance bill.
It takes a great deal of courage to start and run your own business
............. hence the stock market = shared risk.

Stan Wilder

On Fri, 25 Oct 2002 15:17:49 -0400 Kim Brennan <kimbrennan@MAC.COM>
writes:
> On Friday, October 25, 2002, at 11:37 AM, Kenneth Wilford wrote:
>
> > 2 new heads- $790
> > 1 new set main bearings- $75
> > 1 new set cam bearings- $9
> > 1 new of pistons cylinder and rings- $275
> > 1 new oil pump- $25
> > 1 complete engine gasket set- $120
> > 1 set of rebuilt rods- $140
> > 1 set of new lifters- $72
> > 1 reground cam- $80
> > 8 pushrod tubes- $72
> > Total- $1658
>
> The stupid system analyst in me asks...are those retail prices, or
> wholesale prices? Another place that a profit can be had, is in the
> parts themselves. If the builder gets these parts at a discount,
> and
> then charges retail (or higher) prices for them, they make
> additional
> profit outside that which you've indicated.
>
>

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