DealersEdge Professional Forums

by **tmundal** » Wed Dec 10, 2014 5:50 pm

My local WD is selling to my wholesale customers at what would be cost +10 for me. Issue is, I think I stock more than they do and i have heard they are struggling financially. So the question is.. do I let them take that business, or sell for nothing and try to put them out of business? Now I do use them from time to time...but kill or be killed I suppose?

by **cville1987** » Wed Dec 10, 2014 5:54 pm

I would bet with the god awful return percentages of most wholesale customers, they will slowly put themselves out with only maing 10% plus paying hourlies. I would just let them bury themselves. Not worth the returns and bs warranty claims because they can't diagnose or get their customers to come back.

by **X476** » Wed Dec 10, 2014 9:41 pm

I would just let them bury themselves. Not worth the returns and bs warranty claims because they can't diagnose or get their customers to come back.[/quote]
I would agree, you cannot pay good help and drivers and all other overhead on 10%. If they are struggling they will not be able to do this very long, before raising prices back to normal. If you lose a customer or two they will be back, if not then they probably were not that great of a customer anyway.

Good customer service and parts advisors will beat pricing with quality customers.

by **tmundal** » Wed Dec 10, 2014 9:53 pm

I suppose you are right... but I'm not against a little dirty warfare.. They took my discount away....and that karma guy...he can be a bastard.

by **cville1987** » Thu Dec 11, 2014 1:26 pm

Independents only call us when they have to because they can't get something aftermarket. The big wholesale dealer here sells at 10%-40% over depending on how much business they get from a particular shop, but they are 25 miles away and only deliver twice a day and their wholesale guys are used to mostly answering the phone and hearing "check a number" so there skills can be lacking and wrong parts is a common occurance which is a problem compounded by only getting two trucks a day. So I get most of the wholesale business in my town, at least the ones worth dealing with and I do it at 40% over across the board and I don't deliver because I don't have a driver. Depending on your location and situation, wholesale usually isn't worth the headache and is a money sink in the long term. I get wanting to get them back, but rather than lowering your margins just hire a 20 yr old blonde with DD's to deliver good lord you should see how well it works. :shock:

by **X476** » Thu Dec 11, 2014 3:51 pm

I get wanting to get them back, but rather than lowering your margins just hire a 20 yr old blonde with DD's to deliver good lord you should see how well it works.