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I wonder if the business model is only viable because auto parts tend to be much more expensive. It's probably easier to justify shelf space for an item that's
by autoexec 7y ago
I wonder if the business model is only viable because auto parts tend to be much more expensive. It's probably easier to justify shelf space for an item that's $50-$200 than using that space for several $0.03-$0.50 components.
- axaxs 7y agoIn part. I used to work parts. They are absurdly marked up, but protected almost in a cartel like manner. New parts typically had a 100 percent markup, others much more. A rebuilt alternator, for example, cost us around three dollars. Depending on the vehicle, they sold for between 30 and 100 dollars.
- bluGill 7y agoI think it is viable because there is a lot of demand for parts. There are a lot of cars around and they all will need fixing at some point in their life. This large demand ensures it will be filled well. Radio Shack used to have a similar markup: charging $.70 for a $.03 part.