Originally Posted by legionxxii
I must ask this if you guys are the makers of this then what is the difference between list price and bpd price. Wouldnt the list price be the bpd price since you made it or is this another marketing gimmick to make people think they actaully save $200? Im not bashing BPD at all cause when it comes to the 6.0 you guys dominate I just dont understand the whole price ordeal
Sorry for the economics lesson...
List price is the suggested retail price. It's also a marketing gimmick to some small degree. So are free t-shirts/hats/etc. It would be very rare for you to walk in off the street to an automotive parts store and pay list price. In order to remain competitive, part stores can (and often do) lower their price below the list/retail price, while showing the list/retail price on the invoice so consumers feel like they are receiving a better value.
Repair facilities, in order to be profitable must be able to make money on the parts and labor they provide and warranty. Selling parts for the suggested retail or list price to their customers enables them to legitimately (in the eyes of the customer) capture a percentage of money charged. This extra money is called Gross profit. Gross profit and Net profit are 2 different things. The money collected as Gross profit generally goes toward paying the fixed and variable costs of running and maintaining the business and facility. After these costs are paid, whatever is left over is the Net profit.
Net annual profit for a honest, well run automotive repair business is rarely more than %5-%10 of gross annual sales in my experience.