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11 January 2017

MYTHBUSTING: THE 1000 PER CENT MARK-UP

Recent media has suggested that a mark-up of up to 1000 per cent is being applied to genuine parts.

Depending on the size, make and complexity, the modern motor vehicle is made up of between 3,000 to 4,000 individual components.

If each of these components is produced, stored, inventoried, priced separately, then individually packaged and shipped, with import duties and GST applied, the sum total of all the parts would be greater than that of purchasing one complete vehicle.

Of course, building a car from individually procured genuine parts would be more expensive.

But this is exactly the same that would apply for any other complex manufactured product, especially one which is required to satisfy the rigorous durability, environmental and safety standards of the modern motor vehicle.

Only by purchasing genuine parts through the manufacturer’s authorised supply chain can consumers be absolutely certain that their vehicle will perform and protect its occupants to the levels specified by the factory.

Purchasing from outside the manufacturer’s supply chain is also taking a risk, as there have been numerous instances where non-genuine car parts – including safety-critical devices like airbag triggering units – have appeared and are packaged in an almost identical way to the genuine part.

This story illustrates the scale of the problem: https://genuineisbest.com.au/news/chinese-raid-captures-counterfeit-car-parts-destined-for-australia/

Manufacturers test and back the parts they sell. That’s why Genuine Is Best. Always.

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