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Greedy beef: who is responsible for the high prices for auto parts in Russia

  • July 17, 2023
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The cost of maintaining a car in Russia is still high, although prices for spare parts and consumables for many models have fallen sharply since last year. Professional

Greedy beef: who is responsible for the high prices for auto parts in Russia
The cost of maintaining a car in Russia is still high, although prices for spare parts and consumables for many models have fallen sharply since last year. Professional market players have figured out the reasons why prices are so high and found ways to normalize them.

Since the beginning of the sanctions period, the Russian car market has fallen into the heady 1990s: lies, scammers, counterfeits, loose batches, “leftist” schemes and monstrous deceptions. A year and a half without official deliveries and equally official suppliers not only led to an industry of cheating, but also sent the prices of spare parts and consumables skyrocketing. Everyone earns and the ultimate buyer pays.

Professional industry participants in personal conversations say that the number of scammers just rolls on and on: sometimes it is scary to accept even better offers or contact new suppliers, because the chance of being left without money and without spare parts is almost 100% is.

So, according to the most conservative estimates, the final price of car parts on the counter is 2-5 times too high: such prices are primarily directly related to the “new logistics”, requiring each part to be transported through third countries and an incredible number of “links”, all of which he wants to “weld”, and secondly, without group discounts.

All lots are single, wholesale and therefore there is simply no discount. In addition, new names are entering the market, smelling the opportunity to make a lot of money right now, while there is a shortage and the demand is greater than the supply. So even beginners tighten the nuts to the maximum and “release” the pull extremely slowly.

The final sellers are not left behind: realizing that they have a scarce product in their hands, which will surely find its buyer, it is only necessary to indicate and confirm its presence, they raise the price by 40% -60%. For the “perfect storm” we saw last year, which is in no hurry to stop completely, there are two breakwaters.

First, the situation will change radically when official suppliers, either themselves or through affiliated companies, return to Russia. The “official” must not only make a profit, but also sell a certain volume, which will be the decisive factor in lowering prices.

The second argument is marketplaces, which are increasingly pushing traditional commerce from the counter to the sidelines of the market. And there the requirements are strict: the price must be lower than anywhere else. Once these two lines intersect in space, auto parts prices will begin to fall and reach their real, not inflated indicators. Not before.

photo longstreetautobody.com

Since the beginning of the sanctions period, the Russian car market has fallen into the heady 1990s: lies, scammers, counterfeits, loose batches, “leftist” schemes and monstrous deceptions. A year and a half without official deliveries and equally official suppliers not only led to an industry of cheating, but also sent the prices of spare parts and consumables skyrocketing. Everyone earns and the ultimate buyer pays.

Professional industry participants in personal conversations say that the number of scammers just rolls on and on: sometimes it is scary to accept even better offers or contact new suppliers, because the chance of being left without money and without spare parts is almost 100% is.

So, according to the most conservative estimates, the final price of car parts on the counter is 2-5 times too high: such prices are primarily directly related to the “new logistics”, requiring each part to be transported through third countries and an incredible number of “links”, all of which he wants to “weld”, and secondly, without group discounts.

All lots are single, wholesale and therefore there is simply no discount. In addition, new names are entering the market, smelling the opportunity to make a lot of money right now, while there is a shortage and the demand is greater than the supply. So even beginners tighten the nuts to the maximum and “release” the pull extremely slowly.

The final sellers are not left behind: realizing that they have a scarce product in their hands, which will surely find its buyer, it is only necessary to indicate and confirm its presence, they raise the price by 40% -60%. For the “perfect storm” we saw last year, which is in no hurry to stop completely, there are two breakwaters.

First, the situation will change radically when official suppliers, either themselves or through affiliated companies, return to Russia. The “official” must not only make a profit, but also sell a certain volume, which will be the decisive factor for lowering prices.

The second argument is marketplaces, which are increasingly pushing traditional commerce from the counter to the sidelines of the market. And there the requirements are strict: the price must be lower than anywhere else. Once these two lines intersect in space, auto parts prices will begin to fall and reach their real, not inflated indicators. Not before.

Source: Avto Vzglyad

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