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Cut the cost of Volvo part

22nd October 1998
Page 7
Page 7, 22nd October 1998 — Cut the cost of Volvo part
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Which of the following most accurately describes the problem?

by Charles Young • Canny hauliers are hitting back at the price of parts in Volvo dealerships by inventing "competitive quotes" from motor factors which Volvo dealerships then match.

This ploy is particularly rife when a dealership is sensitive to competition from a kx_al factor. If the haulier says the price came front such a competitor, the dealership will often match the price, or come very close to it. In most cases the dealership doesn't bother to chat the quote.

This practice highlights the difference in price between socalled genuine manufacturer parts and parts from motor factors. In many cases once the part is taken out of the box it is identical to the component supplied by the motor factor.

• A compressor for £346.24 from Heathrow Commercials—list price, £577.07.

• A turbocharger for £247 from Volvo Truck and Bus, Perth—list price, £380.

• A brake drum for .E68.60 from Dennison Commercials, Coleraine, Northern Ireland— list price, £114.46.

In each case we posed as a haulier

who had had a quote froi competitor. Once the nam the competitor and the ha er's name was supplied price was matched. Ev price we quoted was lo, than that offered by the c petitor (CM did not go thro with any purchases).

Hauliers who are locked contract maintenance schei are typically offered a 10% rei tion on the list price on parts a 25% reduction on filters.

A spokesman for Vo Truck and Bus says it sells parts to dealerships with a ommended maximum re price. Commenting on the ference between Volvo's pi and those of many factors adds: "You've got to remerr the back-up you get with uine parts. Will the factor a out to the truck 24 hours a < 365 days a year?"

Tags

People: Charles Young
Locations: Perth, Coleraine

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