FCP Euro -- Returning Fluids

[tigeo]

From my YouTube. Info in description. Only change is that I do the PayPal refunded shipping now.

Folks don't seem to realize that companies don't offer these promotions/policies if in the end they don't make money on it. They make money b/c 1) most folks don't take advantage of it 2) most folks think this is so great but won't own the car long enough to ever return any of it 3) it's a hassle and includes shipping 4) while you are there ordering your oil change kit oh wow, what just popped up? Liquimoly additives! I'll take some of those....and guess what? No 100% replacement on those. 5) how many people that have read/participated here just ordered something/will order something from FCP? It's a brilliant system.

 

[ShadyMF]

This is still going eh?

Morning all

 

[reverend_sean]

I feel like I should have FCP stickers all over my car for the "rotors and brake fluid" sponsorship program that they provide me with. In return, I do buy pretty much every other maintenance part from them and champion them to any person that will listen.

 

[tigeo]

I feel like I should have FCP stickers all over my car for the "rotors and brake fluid" sponsorship program that they provide me with. In return, I do buy pretty much every other maintenance part from them and champion them to any person that will listen.
View attachment 226012

They just won. As I said above, brillant.

hOW doES Fcp mAkE mONeY yOU guyS ArE GaminG tHe SysTEM anD IT's unEtHicaL

 

[tigeo]

I just did the math on this magic.

I've spent to-date on my 3 VWs with FCP ~$1,800. I've returned items under the replacement system for ~$400. Obviously some of what I bought is in-use on the 3 cars and will eventually be replaced for free but some will never be replaced or is a consumable not elgible for a refund/free replacement. However, if you do the math, that's effectively a ~20% discount. Again, they aren't losing money here, on average.

 

[HelloNewman]

I just did the math on this magic.

I've spent to-date on my 3 VWs with FCP ~$1,800. I've returned items under the replacement system for ~$400. Obviously some of what I bought is in-use on the 3 cars and will eventually be replaced for free but some will never be replaced or is a consumable not elgible for a refund/free replacement. However, if you do the math, that's effectively a ~20% discount. Again, they aren't losing money here, on average.

That equation is incomplete. You've spent $1800 in purchases, then returned $400 worth of product. If we assume that the company is operating at a net profit margin of 10% (overly generous considering much larger parts companies struggle to achieve even half that: https://www.macrotrends.net/stocks/charts/AAP/advance-auto-parts/profit-margins) they have lost $220 overall (and climbing as you plan to return more product) The company would now need to make an additional $2200 in sales just to break even in profit to cover your return. Realistically the loss is even greater because I haven't even factored for the labor costs needed to process your return, send you out new product, inventory adjustments and ordering, etc. They are absolutely 100% losing money when people return products that can't be resold.

 

[gixxerfool]

That equation is incomplete. You've spent $1800 in purchases, then returned $400 worth of product. If we assume that the company is operating at a net profit margin of 10% (overly generous considering much larger parts companies struggle to achieve even half that: https://www.macrotrends.net/stocks/charts/AAP/advance-auto-parts/profit-margins) they have lost $220 overall (and climbing as you plan to return more product) The company would now need to make an additional $2200 in sales just to break even in profit to cover your return. Realistically the loss is even greater because I haven't even factored for the labor costs needed to process your return, send you out new product, inventory adjustments and ordering, etc. They are absolutely 100% losing money when people return products that can't be resold.

Not that I disagree, but what about those parts you buy along with returnable that won’t necessarily won’t get returned? Or items you buy that can’t be returned?

 

[jimlloyd40]

That equation is incomplete. You've spent $1800 in purchases, then returned $400 worth of product. If we assume that the company is operating at a net profit margin of 10% (overly generous considering much larger parts companies struggle to achieve even half that: https://www.macrotrends.net/stocks/charts/AAP/advance-auto-parts/profit-margins) they have lost $220 overall (and climbing as you plan to return more product) The company would now need to make an additional $2200 in sales just to break even in profit to cover your return. Realistically the loss is even greater because I haven't even factored for the labor costs needed to process your return, send you out new product, inventory adjustments and ordering, etc. They are absolutely 100% losing money when people return products that can't be resold.

I've wondered how they can do it also but obviously it's profitable or they wouldn't continue doing it.

 

[mrmatto]

They're probably marking up a slightly higher profit margin as well as getting manufacturer rebates for sales quantity.

 

[SnailPower]

seems immoral?

My thoughts too. It's like that MoviePass company that you pay like 12 bucks a month for unlimited movie watching. Obviously they went under.

Just how long can this company give out free oil before they have to change policy or they go under? I understand a nice gesture of support they want to show, but isn't this almost taking advantage to the extreme? To the point where you're hurting a business that is trying to be one of the better ones with their return policy? In turn ruining it for everyone else?

Like if I bought my 2k turbo and it blew eventually and I could return it to them. That is pretty damn cool. Yet Joe and Schmoe here ran them out of business because they continued to return their 60 dollar oil changes (read this last portion with anger if you choose. It was meant for both ways )

 

[Agray]

My thoughts too. It's like that MoviePass company that you pay like 12 bucks a month for unlimited movie watching. Obviously they went under.

Just how long can this company give out free oil before they have to change policy or they go under? I understand a nice gesture of support they want to show, but isn't this almost taking advantage to the extreme? To the point where you're hurting a business that is trying to be one of the better ones with their return policy? In turn ruining it for everyone else?

Like if I bought my 2k turbo and it blew eventually and I could return it to them. That is pretty damn cool. Yet Joe and Schmoe here ran them out of business because they continued to return their 60 dollar oil changes (read this last portion with anger if you choose. It was meant for both ways )

You evidently haven't read the policy or viewed the videos from FCP where they educate the consumer how to properly return their fluids. There is nothing immoral about this... it's encouraged by FCP, and they have a clear policy outlining what they will and won't accept. It's a numbers game between the "loss" they take on warrantied items and the customer acquisition costs. As others have said, they wouldn't be offering it if they couldn't justify it.

 

[SnailPower]

You evidently haven't read the policy or viewed the videos from FCP where they educate the consumer how to properly return their fluids. There is nothing immoral about this... it's encouraged by FCP, and they have a clear policy outlining what they will and won't accept. It's a numbers game between the "loss" they take on warrantied items and the customer acquisition costs. As others have said, they wouldn't be offering it if they couldn't justify it.

You're right. I did not read it. Though hey, I'm glad to hear they're encouraging it and they can stay in profit. As long as they're good, we're all good

 

[StorableComa]

That equation is incomplete. You've spent $1800 in purchases, then returned $400 worth of product. If we assume that the company is operating at a net profit margin of 10% (overly generous considering much larger parts companies struggle to achieve even half that: https://www.macrotrends.net/stocks/charts/AAP/advance-auto-parts/profit-margins) they have lost $220 overall (and climbing as you plan to return more product) The company would now need to make an additional $2200 in sales just to break even in profit to cover your return. Realistically the loss is even greater because I haven't even factored for the labor costs needed to process your return, send you out new product, inventory adjustments and ordering, etc. They are absolutely 100% losing money when people return products that can't be resold.

My thoughts too. It's like that MoviePass company that you pay like 12 bucks a month for unlimited movie watching. Obviously they went under.

Just how long can this company give out free oil before they have to change policy or they go under? I understand a nice gesture of support they want to show, but isn't this almost taking advantage to the extreme? To the point where you're hurting a business that is trying to be one of the better ones with their return policy? In turn ruining it for everyone else?

Like if I bought my 2k turbo and it blew eventually and I could return it to them. That is pretty damn cool. Yet Joe and Schmoe here ran them out of business because they continued to return their 60 dollar oil changes (read this last portion with anger if you choose. It was meant for both ways )

Both of you are ignoring that suppliers often give cash bonuses and steep discounts to shops that move a lot of volume. The free oil returns could just be their way of moving more product, ensuring they get a nice fat bonus and the ability to purchase the oil for pennies on the dollar. Companies do things like this because just buying something for cheaper than you sell it isn't the only business model that can make money. Seeing as they've been in business for quite a few years and ALWAYS encourage the use of their return policy, also while employing a sizable workforce would seem to say they are not in fact losing money.

I've bought plenty from FCP that will probably never be returned. That P3 Boost gauge that I paid more than I could get it from another shop to buy from FCP? Probably won't shit the bed before the wheels fall off my car, but if it does I'll be damn glad I bought it from them. Because you don't understand the economics or how high inventory movers are rewarded by suppliers and parent companies doesn't make anything immoral or wrong, it just makes you ignorant.

But please continue to tell us how a company encourages and posts about returning oil so they can go out of business sooner.

 

[SnailPower]

lol, I feel I've struck a nerve with blaming people for FCP going out of business. I'm sorry for not reading the return policy. It clearly states they encourage this so by all means, continue returning your oil.

 

[StorableComa]

It's more just the ignorant or flat out stupid things that people feel they are justified in spewing when they don't understand things as a whole.

FCP will rarely be the cheapest place to purchase your parts, if you're looking to save money in the now you'll have much better luck with ECS, USP motorsports, Shop DAP and a dozen other sites. These people have been in business since 1986, so I'm inclined to believe they've figured out how to make money and offer their sweet, sweet return policy. I'm not trying to say anyone is stupid, I'm just trying to educate them to their ignorance in attempting to shame people people for taking advantage of a policy that is a main selling point for that company. Their return policy is plastered all over their website, they full expect people to choose them because of the buy once, cry once mentality and they are making money off it.