On Sunday, April 3, 2011 5:01:10 AM UTC-7, amdx wrote:
In doing all of this work I have done a bunch of shopping around and I
am amazed at the variation in prices for parts.

I helped a boat owner replace a microswitch on his steering control.
He mentioned they sure want a pretty penny for those switches, I had
to ask "how much". He said they were $70 or if you bought 5 they
were $50 each.
I did an online search and found them for $14.71, with over 2000 in stock,
and I found 3 for $8.95 and I found them for $8.53 minimum purchase 100.
Same manufacturer, same part number.

In this case, it's a boat manufacturer's markup on a part he gets from
a distributor who marks it up from the factory. The boat manufacturer
buys a small stock for replacement, understands that the stock may
have to last five or ten years, and adds on tax + interest for the full decade
when he decides his pricelist. Meanwhile, the factory sells overstock
or otherwise lowers the part price. Or, improves it.

Paying the boat manufacturer for a switch is ...paying inventory
and monopoly taxes on top of the part price. The boat manufacturer
can make it VERY hard to bypass his parts store, by relabeling all
those switches and suchlike and eliminating the factory part number.