Mark-up (was Steinway parts)

[Dean May]

>>Marking up parts to enhance profit blurs this edge we have and want to
keep. 



Do you charge for the time on the phone to the parts supplier, the time to
gather the shipment before going to the customer's house, the time it takes
to manage the overhead of having a supplier with an open account, the time
invested in managing an inventory of parts (let alone the costs of the
cabinets and boxes to store them), the opportunity cost of money invested in
an inventory of parts? 

 

There is a real cost involved in handling parts and maintaining inventories.
Setting a markup is only allowing yourself to make a profit from that
investment of labor and resources. Failing to set a markup only means you
are losing money (or failing to value yourself), unless you pad your
standard labor rates. It's simple economics. 

 

Dean

Dean May             cell 812.239.3359 

PianoRebuilders.com   812.235.5272 

Terre Haute IN  47802

 

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From: pianotech-bounces at ptg.org [mailto:pianotech-bounces at ptg.org] On Behalf
Of paulrevenkojones at aol.com
Sent: Wednesday, February 13, 2008 1:26 AM
To: pianotech at ptg.org
Subject: Re: Mark-up (was Steinway parts)

 

David:

Since we started this business (now businesses) lo these many decades ago,
our original posture was to evaluate our "value", set it in a dollar/hour
labor cost, and never ever add on to parts costs. It forces us to
continually do the hardest thing we as independent business people do:
calculate our own worth in world on a regular basis, balance what we need
and want, and then make decisions for the profitability of our businesses.
Culturally, we're trained to be valued by external forces (you're worth X,
so that's what we'll pay you because it's the "competitive" value that's
been established). Valuing ourselves is likely the hardest, but most
productive, business activity we can undertake. Marking up parts to enhance
profit blurs this edge we have and want to keep. 

Paul

 

 

-----Original Message-----
From: David Andersen <david at davidandersenpianos.com>
To: Pianotech List <pianotech at ptg.org>
Sent: Tue, 12 Feb 2008 8:56 pm
Subject: Re: Mark-up (was Steinway parts)

I don't use a mark-up either; I just charge a hell of a lot for my labor....

xoDA 
 
On Feb 12, 2008, at 12:46 PM, A440A at aol.com wrote: 
 
> 
> << Me thinks that the issue is that most techs (as well as mechanics, 
> computer repair, plumbers, etc) build in a profit margin on parts > and if

> the general public knows the ACTUAL cost, they might raise a stink > about

> it. >> 
> 
> I suppose this is so, however, I don't use any mark-up. I > tell my 
> customers that the price they are charged for parts is my cost, and > the
reason 
> my prices are higher than my competitors is that I charge a lot > more for
my 
> labor. They don't seem to mind, especially when they have been > given a
higher 
> price for parts by another tech! 
> Regards, 
> 
> 
> 
> Ed Foote RPT 
> http://www.uk-piano.org/edfoote/index.html 
> www.uk-piano.org/edfoote/well_tempered_piano.html 
> <BR><BR><BR>**************<BR>The year's hottest artists on the > red
carpet 
> at the Grammy Awards. Go to AOL Music.<BR> 
> (http://music.aol.com/grammys?NCID=aolcmp00300000002565)
<http://music.aol.com/grammys?NCID=aolcmp00300000002565%29%3C/HTML> </HTML> 
 

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