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5 Things to Know Before Buying oem casting parts company

Aftermarket parts VS. Genuine. False economy or good deal?

This may cause a bit of a stir with you guys, but Ill discuss it anyway.   Some of you are staunch users of genuine, OE, brand name appliance parts.  I am not one of those people.  Appliance parts is an expense in my business second only to labor.  My rough guesstimate is that I spend about $50,000 a year on parts. If I used exclusively genuine, new parts that figure could easily go up 20%.  Perhaps even more. 

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Control boards: 

You can go new, genuine, and pay $200 for it +$60 core, or you can buy direct from core centric (or others) for $98, no core charge.  Sounds like a no brainer eh?  Well, its more complicated than just money.  

1. The defect rate is definitely higher than new.  I have purchased hundreds, and hundreds of reconditioned boards form core centric.  I would say that 1 in 50 will go bad within 30 days, or be bad out of the box.   I can honestly say that I can't remember EVER buying a new board from Servall that was bad out of the box.  

2. You are charging your customer "new board" money.  I was having a moral dilemma with this one for a while.  I was able to find a great solution to this.  Guarantee your work parts+labor for 1 year.  Chances are that you will never hear from them again, I have only had 2 call backs that were in the 60day-1 year timeframe.  The bottom line is this: You are offering your customer MORE than what they would get with a "new" board, and you get to make more money. 

3. The core charge.  I, like many of you, have had north of $500 is core money sitting in your van.  That sucks.  Buying a refurbished board saves that dilemma.  Its all about keeping more money in your pocket!  

 

Non-complicated generic parts:

Lets talk about the Direct drive lid switch part # .  I use at least 3 a week, between COD calls and my shop.  They cost $16.29 at Servall, I get them generic for $2.20. That is a savings of over $14!  I have been using this switch for about 2 years, and I have installed a few hundred, at least.  I have had ONE fail me.  It wasn't even broken, the casting was filled on one of the mounting holes.  If you calculate $14 x the 300 or so I have used so far, you will conclude that I have saved myself over $.   I can apply the same thing to couplings

: servall: 6.89, generic $1.50.  

14.50, generic  $6.50 

15.60, generic $6

Im not even going to tell you how much a complete duet water pump costs.  (hint: its less than $20) 

 

Id like to mention one part specifically, GE gas oven thermostat WB20K8.  You can get it at servall for $86, or you can buy it from ERP for about $65. I know, its only $20.  The thing is this:  Both of those parts are made by the some company, Harper Wyman  They are the EXACTLY the same part. one comes in a bag, one in a box.  

 

I have used many hundreds of these parts, and find them to be as good, or better than genuine.  Again, you will get the very rare premature failure, but its more like 1 in a hundred with this stuff.  If you are using this stuff by the dozen, it makes sense for you financially to use it.  

Electricky complicated stuff like sensors and door locks. 

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Quite frankly I don't use them.  I had a bad experience with some VMW lid locks that were dirt cheap, like $16.  Problem is that none of them worked.  I don't use that many of them, so the saving is not that much to me.   Ref sensors are dirt cheap for genuine, so I would rather buy those.   I will eventually warm up to them again. It takes time. 

 

Conclusion: 

There is a time and place for generic parts. I genuinely believe that there are some aftermarket companies that truly want to make a good product, and want to end the monopoly that is OEM.   Some companies are out there selling cheap junk.  You have to try out a company, or a line of parts before you buy in bulk.  For me its worth the slight aggravation based on how much extra money it puts in my pocket every year.   Ultimately you should do what you think is best for you and your business.  

 

Auto Parts And Original Equipment Quandary

An OES is a third party manufacturer for an OEM Vehicle Manufacturer (most basic definition). The typical car company (like Volvo) simply does not have the ability to manufacturer every part they need to make a car.  It&#;s much more cost effective to contract with existing specialty manufacturers.   This is true with many complex industries and automotive is just one example.  Specialty manufacturers can produce parts more efficiently, faster and many times have more experience to produce a better part.

Typically, a supplier change or engineering/design change results in the OEM superseding the part number to a new number.  There are some Volvo part numbers that were superseded many times. These supersession chains can also be caused by continuing development to use the same part on newer/more models. (i.e. using the stronger axles for a turbo model on a non-turbo model as an HD upgrade can also eliminate the original part)

If the OEM vehicle manufacturer changes suppliers at some point, the new supplier can now be called OES even though that part is not original to the car. So keep in mind that OES does not necessarily mean it is the same as the part that was originally installed on the car at the factory.

Original Equipment Supplier seems on the surface to be really simple.

In most cases, you can get the same OE engineered part just not in a OEM branded box (i.e. blue Volvo branded box.) 

Many times, you can see where the OEM branding branding has been ground off of the castings or stickers removed from the parts.  This is because the OES manufacturer does not have the licensing rights to sell products using the vehicle manufacturer&#;s brand name or trademark.

A good example is the OES Aisin water pumps IPD sells.  Aisin does a manufacturing run for Volvo and produces extra units for their own channel but they grind off the Volvo branding from the casting.  Aisin also does not include new bolts with the pump because Volvo didn&#;t source the bolts from them as part of the pump. Aisin may not even know what bolts are used in any given application since Volvo doesn&#;t have any obligation to tell them.   IPD provides new bolts with our pump kits to make them a direct equal replacement for the Volvo branded kits at a lower price.

Most aftermarket parts sources will label a parts manufacturer as OES since they are OES for some parts but will not differentiate for each model or application. Some just flag a whole brand as OES because they are OES for one car manufacturer. But being OES supply for one part does not make a supplier OES for the entire vehicle.

Generally speaking, OES parts are the most cost effective quality option.  However, there can be aftermarket options that are better.

There are even some OES suppliers that will make lower quality versions of the OE parts for their aftermarket supply channel.  We don&#;t generally see this in the European car market but it is possible.  It&#;s usually not cost effective for lower volume manufacturing runs to retool for a cheaper version. We&#;ve even seen where the original OES manufacturer is still selling the old version of a redesigned part through their aftermarket channel after Volvo re-engineered the part and moved to a new manufacturer.

At IPD, we attempt to match OES parts to OEM parts and make sure they are equivalent.  We don&#;t like to list something as OES when it isn&#;t equivalent to OEM. Many parts suppliers are blurring or eliminating the line between OEM and OES though this isn&#;t really full disclosure.  This is why IPD is moving away from the deceptive OEM terminology and using the term Genuine.

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