Re: What a Scam!

From: Jerry G. (jerryg50_at_hotmail.com)
Date: 03/12/05 

Date: Sat, 12 Mar 2005 02:28:20 -0500

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. 

-- 
Jerry G.
======
"Chris F." <zappymanREMOVETHIS@hotmail.com> wrote in message 
news:7vqYd.18248$oh4.659099@ursa-nb00s0.nbnet.nb.ca...
  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.

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