Parts mark up

RBoots

Well-known Member

Went over tonight to work on a combine that the owner believed ran out of fuel. He had been trying to bleed it, had plenty of fuel to the pump but none out of it. First thing I checked was power to the shut off solenoid, has power. Checked the solenoid itself, toast. This is on an IH 1440 combine with a D414 and Ambac pump. Take the solenoid out, see if the combine runs, it takes right off, runs a bit rough. It turns out, it had run out of fuel, as well as the shut off solenoid burned up. He had already put 10 gal of fuel in it and pretty much had it bled out, but still couldn't figure out why it wouldn't run, and that's when he called me. So, apparently he had that bad of luck that it ran out of fuel and burned up the shut off solenoid at near the same time. He was letting it run to charge up the batteries and get things moving before he moved it out of the way of his implements. Anyway, I call the local IH dealer, and that solenoid alone is $1100! Ridiculous. But the solenoid has an Ambac part no, and above it, a Lisk part no. So I Google the Lisk part no. and it is a reasonable (not) $647. Turns out, GW Lisk company makes the shut off solenoid for IH, Ambac, what have you. Then IH marks it up to $1100, a mere profit. Pretty expensive for such a common device.

Ross
a220737.jpg
 
Thankfully it's not mine, but I don't believe so. The plunger goes into the injection pump, and when you screw the actual solenoid into the pump, it seals it up. It has to pull the plunger into the solenoid coil (away from the pump) for it to run.

Ross
 
Holy Moses! And I thought $50 was high for that Hockey puck sized field cultivator part Deere tried but failed to sell to me.
 
Yup, it's a total ripoff, I worked at a outdoor power equipment dealer for a few years, I'd have to look up parts for different things, a cylinder or jug for a artic cat 440 Suzuki snowmobile engine was $215 dealer cost, but resale to the customer was $525, I couldent believe the mark up on parts.
 
At those prices, I would be looking into salvage yards for a used one. Is it made of gold or platinum? At those prices, it should be one or the other!!!
 
LOL, I told him I didn't want the whole injection pump, just the solenoid. He sheepishly told me, "that IS the solenoid..."

Ross
 
for that much I would try to make that one in a manually operated valve like
my massey has
pull it out like a choke to shut down in to run
in your case it would be the reverse
mines connected by a rod into the cab where it easy to reach from the seat for starting or shut down
good luck
 
Looks like they might be close to 100% maybe, I've seen 100% mark up before but usually not on more expensive parts like that. Some of the little things like small gaskets, o-rings, nuts n bolts could have 1000% mark up or more.

$.30 bolt x 2000% mark up = $6.30
$550 dollar solenoid x 100% = $1,100

We've all spent crazy money on little things, and probably never realized they probably marked it up real high, of course they are paying the rent selling the little stuff.
 
LOL! Last year, I went to my local FORD dealer to purchase a oil seal for my rotary cutter. I
told him the part number and he got the seal from the bin. He looked up the price and said it is
$4.00...but, then said "this is the price listed in the computer for 2012. So now I feel the
price should be $16.00".

I left the store without the seal. Now, I just fill the gear box full of grease before I use it.
 
Salvage will be half of dealer new retail, putting it at just about the lower price he found for the NEW Lisk unit!
 
Hi The guy needs to think himself lucky he hasn't got a Landini Mythos tractor. There are 6 or 8 solenoids on that tractor to run the trans and some other functions. they are now around 800 to $1000 each with the Canadian $ being worth nothing. I got a customer who is going through changing them all one at a time as they fail. In my opinion that tractor wasn't worth $8000 new. He's had other expensive issues to. The dealer for them in this area won't even bid on them to trade now if they are 10 years old or over 3500 hours, so he has no faith in them either!. I hope that combine lasts until the guy retires, He's going to get a nasty shock if he buys a newer one with everything electronic or solenoid controlled. Then find he has to pay the dealer to fix most of it to!
Regards Robert
 
Crazy price for the solenoid but I can understand the markup local Deere dealership pays
$20,000 a month rent and they can't find anywhere else in the area cheaper so basically every business day they are a little less than $1000 in the hole before they unlock the door.
 
Went to the super duper new deere dealer for a radiator cap $52 old dealer 20 mile away, $46 he got it down to $26 by going after market. same part as in deere box.
 
It is common to practice to temporarily mark up the price of slow moving inventory before disposing of them. This is especially true for items a company buys from smaller manufactures. The company gets a high tax right-off for the items they intend to sell-off or scrap. It's likely the company will have the smaller manufacturer (Ambac) maintain an inventory of those same parts to sell and ship to directly to dealers, skipping a few unnecessary steps in a long distribution channel.
 
(quoted from post at 05:13:28 03/22/16) Greed has worked its way into capitalism more and more in the last 10 to 20 years.

I don't know about that. Back in 1980 I was home on leave and stopped in to see a guy I had gone to high school with who had opened up a parts store. I made a couple of smart ask comments about him having a license to steal. TO my surprise he laughed and then showed me the markup put out by the national chain he was associated with. His cost to wholesale to a repair shop for a spark plug was 50%, to a walk through the door customer 100% and the markup recommended to the repair shop for their customer almost 100% of the wholesale price. Specialty parts were even worse with some expensive parts being very close to 50 to 60% markup between his cost and wholesale. He knew there was a good markup but didn't know how much until owned the store. That was in 1980, a lot more than 10 or 20 years ago.

Rick
 
That's why most around here remove the plunger, back out the low idle screw and rework the throttle linkage to shut it down like the tractors, with the throttle. That solenoid was used on some trucks too, might find some in a bone yard.
 
Chuck it in the lathe, cut the coil housing off, and figure out a way to improvise a cable to pull and release it. I know it is not yours, but it would be a good challenge and nothing to lose. I also know that this was not the point of your original post.

Garry
 

We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today.

Back
Top