Parts Markup, was: $450.00 Bass strings

[Douglasmahard@AOL.COM]

In a message dated 03/05/2001 9:05:22 PM Eastern Standard Time, 
Yardarm103669107@AOL.COM writes:

<< Terry:
 Here's a thought for you and any others who want chime in. I believe that we 
 have lost the art of valuing ourselves and translating that value into the 
 costs we transfer to others for the services we perform for them. If we 
 really think hard about what we are worth as a function of what we need to 
 live happily in the world, then why do we need to mark up parts at all, 
other 
 than carrying costs? 
 Paul R-J >>

Hi Paul,
To me "valuing ourselves and translating that value into the costs we 
transfer to others for the services we perform for them" is not "lost" in 
parts mark up. The parts mark up is an indication of valuing ourselves (our 
expertise is what their paying for) and time. I call it extra profit over and 
above what one may have factored into their hourly compensation for a profit 
margin. Customers don't expect to pay wholesale prices for anything unless it 
is advertised that way. This includes you and me as consumers contracting 
with any service provider for what ever reason. 

For me, "to live happily in the world" means figuring out exactly how much I 
need to make in order to stay in business, float all the other financial 
obligations, and fund life's little pleasures that I don't want to deny 
myself. These would include socking money away for retirement, vacations... 
All this translates into marking up parts because if I take that out of my 
economic equation I have to raise my hourly rate to a level that probably 
prices me far and above any other technicain in my market. That would be a 
bad business decision on my part.

Sincerely,

Doug Mahard