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nike123
15-01-2009, 11:12 AM
How you guys (and girls) charge your replacement parts! What is construction of your price for part?

Most of the customers here in Croatia think they should be charged same as in store! Of course that I say that is bull**** and I add to part price my expenses and small profit, but I need some argumentation about practice in countries like EU countries, US and Australia etc..

Does anyone have any study or documents by economist how that price formation for service call (parts and labor) should be done.
Thanks guys and girls!

paul_h
15-01-2009, 02:13 PM
Most suppliers have a list price which is public knowledge (print and website), so that's what I charge.
The suppliers of course give trade discount, and the more business you do with them, and the more you spend or negiotiate, the higher discount you get from the suppliers of that public list price.

IE, me or any new guy usually gets 20-40% off list price, so if you charge the customer list price, your markup is 20% as minimum.
If you've managed to negotiate 40-50% off list price, then your markup is 40-50%. There's no reason to pass on your savings to the customer, that discount is what you've earned.

Although sometimes I get a crap price or something is really expensive etc I don't mark up at all, just charge for petrol or delivery costs. But standard is 15-30% for me, depends on what it is and how much it costs eg a $30 capacitor from a wholesaler who gives me a discount will have 30% markup, or a $400 daikin PCB who don't give me a discount will have 15%.

edit: Except for refrigerant, thats 100% as the standard down here :D

BTW large discount retailers like the cheapest places to shop at for food and clothing etc, have a 20-25% markup*. That's like what you are when buying from wholesalers and selling parts to customers like a retailer.
*Of course you can charge more than 20-25%, all the small retailers and specialty or luxury goods shops do too, more like 40%+