I just can't figure how an aftermarket company can sell the same engine so much cheaper than the manufacturer. Needless to say, my local dealers won't be getting my money.
The dealer is not the manufacturer. They have to buy their stuff from the corporate giant just as everybody else does. Unfortunately, at least with regards to Ford stuff, most, if not all of the "others" can buy at the same price if not cheaper than what the dealer can buy it for. Hard to believe I know, but absolutely true. Combine that with a warehouse that may or may not open to the public (I'm speaking of a local irritant in my neck of the woods) and the public's stupidity on the most basic procedures in repairing cars (meaning the warehouse doesn't have to explain how to check continuity in a wire, etc.), they then only need to keep help on hand that can match this part with that invoice and nothing more which then undercuts the dealer. I mean, don't most people expect the dealer to have all the answers, since it's their product? What I mean is, when you're standing at the Napa counter and you ask about the power steering hose or the air conditioner compressor and you ask a question, you don't expect that person to know everything there is to know about that part. But if you ask the same question at the dealer, don't you expect more from them? Isn't that worth something?
Pretty soon, we won't have a local dealer because everyone is buying from online places. The only way Jegs/Summit can stay in business is due to volume. $8 an hour help doing nothing but pulling and shipping orders, while the parts guy down the street that's been doing it for 20 years has to try and explain how to use a $2 test light and not get paid for the info and smile after the slap in the face once he tells the customer the part is $200 dollars, when O'reillys has it for $25. And we all know that parts aren't of the same quality, right? Except, now, the dealer has to compete (somehow) with O'reilly's selling the same Ford part, cause they bought it direct from Ford. How many of you are tired of the teenagers manning the counter at your local parts house? Could they employ 20 year veteran automotive experts and pay them what they're worth while still selling everything as cheaply?
I'm getting a little off subject here, and if you couldn't tell, LOL, this is a subject a little dear to me. Maybe it's the wave of the future, and we just don't know it yet. The end of dealerships as a whole. You'll order your car online and pick it up at Sam's club. If you need routine maintence, you'll just go to Jiffylube/Valvoline/Walmart, and if you have warranty work, you'll have to go to Sears, Firestone or Pepboys. The small independent shops will not be able to keep up with all the technology, and the service information will become proprietary.
It's just that, and to be more to the point of the original poster, the Jegs/summit places have basically killed the majority of the speed shops around here. People were going into the speed shop to check out/see/fondle the part in question, then going home and ordering it from whomever at a discount. Hard to maintain a decent inventory and keep the doors open that way. I can't say you should purposely pay $300-$600 more for something just because, but some would argue it's something similar to the argument of Walmart moving in with cheap stuff and putting the mom-n-pop operations out of business. Heck, I've done the same thing with the last 3 or 4 motorcycle helmets I've bought. Go to the local shop that has the $700 helmet on display, check it out, try it on, then go home and buy it off ebay for $500. Maybe we reap what we sow?
Edit: While I can't say it's true with GM, we have also run into places selling our own Ford reman engines below what we can buy them for from Ford. Doesn't seem fair, does it?