What a Scam!

I was aware that manufacturers charged high prices for replacement parts, but I wasn't aware of just bad the problem was until recently. I was looking for a replacement DVD laser pickup for Hitachi (see my earlier post) and finally located one from a Hitachi parts distributor. The price? $205 Cdn. I can't believe anyone would have the nerve to charge such ridiculous prices for a replacement part, especially when an entire new unit can be purchased for much less! Obviously, plain old greed is the motivation for this scam, but I have to wonder about a couple of other things.... 1. How do the mfrs actually make this kind of money from replacment parts? They must be making it somehow, or they wouldn't bother to jack the prices up so high. 2. Could enough techs band together to force some kind of legislation, limiting the prices of replacement parts? (not likely, but I thought this could make for some interesting discussion) One thing about working in this industry; you certainly get to see the greedy, money-loving side of society. Be it while buying replacement parts, trying to make a sale, or just giving an estimate to a customer. Anyone still working in the repair industry today is probably there for one of two reasons; they enjoy the work, or they don't have any other options available (both apply to me). Money obviously isn't the motivitation! Just another $.02 of mine.

Reply to
Chris F.
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Maybe by claiming that the parts have an extreme value, they can leverage warranty work by being able to write off these high part prices as business losses on their taxes.

legislation,

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Seams that the sum of all individual parts prices should never exceed the price of a complete item. IOW, I should be able to buy all the individual pieces of a complete car engine from GM for less than a new crate motor costs. All the individual pieces of a car should cost less than a built car, shouldn't they? It seems to me like the makings of a reasonable fair trade law that could end this abuse of the customer.

Auto manufacturers have gotten ridiculous with this stuff. I had to buy some steel pickup tubes for a Camaro fuel tank. All because the fuel level sending unit was welded to the tubes and couldn't be purchased as a seperate part. It only cost $600.00 for a few feet of cleverly built soft steel tubing and a sending unit. After looking at the quality of the sending unit, I'm afraid to think that it actually has electricity flowing thru it.

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Reply to
Anthony Fremont

parts,

looking

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Price a plastic radiator fan for an auto (no motor). Molded price ex factory? Less than $1. Your price? $50+

N
Reply to
NSM

Many years ago I was doing some work for a copper mine in Chile that involved (among other things) a review of all 35,000 spare parts held to identify duplications, upgrade descriptions and part numbers etc. I came across a "battery charger repair kit" for a common peice of earth moving equipment. When looking at the kit I noticed that some of the items in the were also held as discrete spares. A little investigation showed that, in fact, all of the kitted items were also stocked individually. I cannot remember why, but I located all the pricing for the individual parts and compared it to the kit and found that my client was being charged USD$483 for the plastic bag, ie the kit was $483 more than the sum of the individual prices.

Wayne McDermott

Reply to
Wayne McDermott

Don't forget they had to pay the monkey that put the parts in the bag!

N
Reply to
NSM

parts,

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purchased

They price it so high so that nobody buys them and they don't have to deal with having authorized shops stock them. You can get the part if you

*really* need it, but there's no demand so people just buy new units, exactly as planned.
Reply to
James Sweet

What about the cost of packing them as individual parts, cataloging them, shipping, sorting and stocking them individually? None of this is nessesary if the whole thing is bought assembled.

Reply to
James Sweet

It is like that for everything when you look at the true cost of the part itself. They manufactures have high administration and operations costs. If something is not moving very fast off the shelves, then its effective cost is higher.

You also have to consider that when you are servicing your own devices, the labour is actually very expensive. A very good skilled tech has to be paid at least $20 US or more per hour. To operate a business, you would have to charge enough on top to have the operating costs, taxes phones, a vehicle, utilities, and administration costs also to be paid. This is why many of the service centres are charging more than $50 per hour to work on appliances, and home electronics. If you look at the total operating costs for a typical business, there has to be a fair amount of money coming in, or they would have to close down.

As for the low to medium end CD players and VCR's very few people are servicing them. The cost for the labour alone, is just too high to make it worth it. For the low end units, many of the manufactures are no longer supplying or stocking replacement parts. It just does not pay.

As for legislation to make price control, this will never happen in our society. If this starts, this will be the downfall of the way we live. There is the aspect of price and demand. If a company starts to charge too high, they will find that they will not be in business much longer.

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Jerry G. ======

Reply to
Jerry G.

Have you ever worked in manufacturing? I worked as a production and engineering test tech. Lets say I needed a 0805 SMD resistor. Our cost was a little over 1 cent. On the other hand the paperwork and time to look up the part number, request the part, have it pulled from the stockroom and get it to my bench was over $5.00. I finally got permission to get these parts 100 at a time to reduce overhead. I used a lot of SMD resistors, so I had over 100 different values of 1% & .1% resistors on my bench, along with common SMD ICs and a few crystals.

In other words, you have to live it to understand it. You are asking for a very fragile and expensive part that wouldn't be sold every day if it was five dollars. It needs special handling at all stages and a lot of administrative costs, not to mention outrageous taxes on spare parts inventory. Why do you think companies in the US try to use the lousy J.I.T. system? It looks good in theory, but leads to shortages and no spare parts.

The additional costs for spare parts doesn't bother the government because they are just giving back the taxes you paid, along with the cost of the part.

It isn't worth 2 cents.

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Michael A. Terrell
Central Florida
Reply to
Michael A. Terrell

I was told this indirectly but it explained the astronomic parts costs for the company involved ( scope manufacture ). At a regular review period, annually or two-yearly I don't remember, they would divide the parts stock in 2 , sell off at auction one half and double the price of the remainder.

electronic hints and repair briefs , schematics/manuals list on

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Reply to
n cook

I realize that you have to have a certain amount of markup, to conpensate for such expenses. But I think that mfrs could probably sell replacement parts at much lower prices, and still make a decent profit. As someone else implied, they simply want to make their products unprofitable to service - and I still think that's the primary reason for such costly replacement parts.

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Reply to
Chris F.

These days the way they can pack things by machine and do it all in China it does not cost that much to stock parts . The bottom line is they dont sell those high priced DVD lazers on porpose and dont even have them in stock because after a 200$ quote anyone would go buy a whole new player for 45$ . If someone is dumb enough to pay 200$ for one of those can get it .. One of the workers at the plant in China holds a coffee cup under the lazer pooping machine & catches one , chucks it in a box & off it goes .

Reply to
Ken G.

My .02. The high cost of replacement printer cartridges; compared to initial cost of a printer. Does not compute!

Reply to
Terry

initial

Ink jet ink costs much more per ml than the finest vintage wine.

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Reply to
NSM

There exists legislation that manufacturers must stock spare parts for out of production equipment for seven years (or some length of time like that.) This was enacted in the 80s in response to consumer complaints that manufacturers were gouging consumers by forcing them to buy new models when a spare part costing a few dollars would have kept the equipment chugging along fine for a few more years. The manufacturer's work around to comply with the law was to make replacement parts prohibitively expensive. Of course original equipment is so inexpensive these days that repairs are never worth the time and effort even if one has the inclination to tinker.

Reply to
PaPaPeng

If this was ever true, it isn't anymore. The manufacturers are only required to support their product for the duration of the stated warranty, and this can include factory-only repair or just exchanging with a like or "equivalent" product. (How many computer monitors are imported with NO spare parts?)

Company policy and market forces are all that determine parts cost and availability. Certainly laser pickups are overpriced as a rule, but this just means the companies in question aren't interested in selling parts out of warranty, but still stock them (or previously did) for warranty repairs. Eventually they'll sell them in bulk to MCM or somebody else.

Mark Z.

Reply to
Mark D. Zacharias

Where exactly is this legislation found? Enacted in the 80s?

Leonard

Reply to
Leonard Caillouet

Hell, I ended up paying $300 for a heater blower motor for my car when it went south - couldn't find any in the local boneyards. An el-cheapo motor worth about 15 bucks.

Reply to
JW

Also there are military prices. I was told that when the army wants mil-spec bolts as parts they order them as needed, 4 at a time. The makers said they give the bolts to the army for free, shipping free as well, but the army wants a full set of paper work each time and that's what they are billed for.

N
Reply to
NSM

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