Robert Young wrote:
[snip]
> I have personally observed the price shift.  Got some low-ball bids on
> the part price but when I asked for a total to prepare the purchase
> order they started to fuss and wouldn't be exact.  Needed the parts so
> just went ahead and ordered.  Bill came in such that I could have paid
> easily 30% more for the parts alone and still been under their total
> with fees and shipping.  In other cases I've had exorbitant shipping
> charges, much more than 5 times actual cost.  I can understand 2x
> shipping cost to cover time and materials but 5x is a bit much.

That's pretty bad (although it does happen a lot). However, this has nothing 
to do with companies trying to work together to try and keep the prices up.

> Another example (and I wish I could provide you with the web site where
> I did this) I used a locating service's web page to locate stock on an
> obsolete part.  The page it popped up was a list of companies from which
> I could buy the part, their estimated inventory and a contact # or page.
> Weird thing was that many of the companies were listing the SAME
> quantity available.  I knew what the tube quantity was and it wasn't an
> even number of full tubes.  Just an oddball quantity, like you would
> expect from left over inventory.  Turns out these were brokers quoting
> through their own web pages from the same recovery company in Taiwan.
> It was spooky.

Makes sense. But this doesn't mean they're working together, I would 
actually think they were working against each other. They weren't offering 
the same price on the part, were they?

> As to the companies talking among themselves, this does happen.  Some
> companies focus on small quantities while others are simply brokering
> deals between other brokers (B2B sales).  Thus you get some fooling
> around with the prices based on perceived demand.
>
> The term "master database" is a bit misleading and I can't really
> provide a better description but does convey the concept of shared
> information.

Well, the thing is, you said originally:

> many of these companies
> talk amongst themselves and there are a few "master" databases (over
> simplified but close enough) and the more traffic some of them see
> concerning a particular part number, the higher the price will become
> when you finally locate the quantity you need.

You're saying there's a conspiracy among the surplus parts companies. I 
don't believe that's the case. Although it's virtually impossible to prove 
either way, there are simpler explanations for what you described. And the 
difference is important.

If what you're saying is true, then you should avoid "creating traffic" by 
submitting multiple requests for quotation.

>From my personal experience, it pays to shop around. The prices I get from 
different sources are usually different (they would be the same if the 
companies were in a cartel agreement). And sometimes I'm able to get a 
better deal by pitting the suppliers against each other ("Bill said that 
he'll sell X units for Y$/each ").

Of course, if there's only one supplier, and they know it, they'll make you 
pay through the nose. Welcome to capitalism. :)

Best regards,

Vitaliy 

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