mark up on materials.

B

Bodd

Hello All

I tend to put fro 10 - 20 % mark up on materials. Depending on the job.
I feel its right to do so but I can't help but feel aa bit uncomfortable with it.

How do you feel it justified or just wrong.

Bod
 
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Hello All

I tend to put fro 10 - 20 % mark up on materials. Depending on the job.
I feel its right to do so but I can't help but feel aa bit uncomfortable with it.

How do you feel it justified or just wrong.

Bod

You are running a business. Think about it ;)
 
you supply materials you are responsible for them
they fail you have to fix at your time and expense
you also have to pick them up using your time
 
Some people like to use the cost of materials to hide what they actually charge the customer if your not comfortable with this dont do it, be honest and say you want eg £80 for a job and not £60 with £20 added to part .
It is so easy for people to check mats costs on the net and have them thinking you are ripping them off even though as has been said you have incured a cost sourcing it
 
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When I had my van serviced at Ford main dealer, I asked what the £8 was for? they said it was to phone the MOT garage over the road to book a MOT for my van! :eek:

Every company has a good mark up, as said before you are running a business

Also do you charge more money for materials carried in your van? I do.

Andy
 
Marking up trade prices is one thing, marking up retail is another. At the end of the day, you may price yourself out of a job so there is a thin line between reasonable and unreasonable. If you go too far, you will know because you won't be working, unless you do everything T&M rather than fixed price but most customers would shy away from the unknown costs of T&M if they have any sense.
 
When you buy goods from your merchant he has a mark up,he may offer you a discount because you by x amount materials and you have been a loyal customer,how ever this mark up is there because he needs to make a profit same as you need to make a profit to stay in business.
 
Some people like to use the cost of materials to hide what they actually charge the customer if your not comfortable with this dont do it, be honest and say you want eg £80 for a job and not £60 with £20 added to part .
It is so easy for people to check mats costs on the net and have them thinking you are ripping them off even though as has been said you have incured a cost sourcing it

It is irrelevant what is on the net. What matters is that you make a profit commensurate with the risk. I am totally upfront now, and when discussing a job, I will mention that they could possibly buy it cheaper off the net - but they do the running around, and take the risk of a short time failure, which will be their problem, not mine. I have yet to have anyone go down that route when offered.

Incidentally, I was having a new tyre fitted a couple of weeks ago, and there was a big sign saying they don't fit customer supplied parts.
 
I do tend to tell customers in conversation but don't put it on an estimate.

In future I may as a footer explain my reasons for puting a markup on materials.

if I fit a boiler or an Unvented cylinder I tend to mark up maybe 5 %. As at least if they go wrong the manufactures will come and remedy the problem. Even if it still takes up my time.

I don't want people to think I'm ripping them off but to understand why.

Bod
 

I don't want people to think I'm ripping them off but to understand why.

I wouldn't Bod. It give an opening for discount discussions. I don't recall seeing a sign in Presto's telling us their mark up. Behave and act like a businessman, you will lose the odd customer, but you will get more respect. IMHO, of course. When I tell punters about cheaper stuff on the net, it is often genuinely more expensive than a proper merchant, but I tell them I am disinclined to go net bargain hunting.
 
Its not irrelevant what is on the net for those that add a lot to trade price if a customer looks on the net and sees ten places selling a part for 70 quid and the guy is trying to charge 150 quid for it then the customer will think that person is ripping them off as it will be roughly same price from a merchants(rightly or wrongly) .
Thus cancel job and tell 20 people that you where ripping them off so no matter how few jobs you lose it is multiplied ten fold in conversations

Also the net does not mean cheap and cheerful parts as some of the biggest parts suppliers are on there supplying next day which is sometimes quicker than merchants.

Why would it matter what tyre companies do , do you not fit customers own fires ,cookers, rads etc
 
5% mark up??? WTF is that!! we make at least 25% on everyvthing we sell on you can't tell me TESCO work on a 5% mark up!!

What if when that boiler you fitted breaks down the Manufacturer rocks up and won't uphold the warranty?? that's your problem then!! a 5% mark up won't help you in those circumstances

If you a frightened of applying a realistic mark uo you shouldn't be running a Business! ( sorry if that seems harsh -
I hope you will see it as a reality check!) ;)
 
gas112";p="2782848 said:
Its not irrelevant what is on the net for those that add a lot to trade price if a customer looks on the net and sees ten places selling a part for 70 quid and the guy is trying to charge 150 quid for it then the customer will think that person is ripping them off as it will be roughly same price from a merchants(rightly or wrongly) .
Who mentioned imposing a 115% mark up? The point is, we are not volume merchandisers, and why would anyone take a financial risk for nothing?

If you put all your expected income from the job , they will just think you are ripping them off for labour!

Also the net does not mean cheap and cheerful parts as some of the biggest parts suppliers are on there supplying next day which is sometimes quicker than merchants.

That is, sadly, perfectly true. However, have you read the T&C's concerning non arriving part and faulty gear? They are not "lost" until they are at least 7 days late.
 
Boilerman.
Should you not be fitting a boiler from a reputable manufacturer who upholds there warranty and doing the job correctly so they have no get out on the warranty .
 
My customers dont think they are being ripped of by my labour charge because even if its dear they know they are getting an honest price with nothing hidden within any element of the job .
Customers dont mind paying for an honest job but it really whinds them up if they think they have been lied to regards part prices.
Each to there own my method works for me and i never struggle for work
 
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