Parts Markup, was: $450.00 Bass strings

[Clyde Hollinger]

Terry,

My perception is that the standard markup is different for different
businesses.  An HVAC man said they usually work with 25%.  On the other hand, I
have heard of some retailers (not sure which now) who use a 400% or 500% markup.

If I understand the Ancott Music Product Directory, most pianos wholesale for
about half the list price.  This is why some dealers can give substantial
discounts and still remain in business.  I do not begrudge them of a hefty
markup, because I would think they have hefty expenses, when one considers
operating a showroom, paying salesmen and everything else.

Even though I usually base parts prices on a 100% markup, profits from the sale
of parts are a very small part of my income.  About the only things I sell from
which I actually make enough bucks worth talking about are the Dampp-Chaser
systems.

Regards,
Clyde

Farrell wrote:

> "Do you all mark up your parts prices?  I don't mark them up 100% like so
> many places but I do want to cover my costs."
>
> My philosophy on this is based on a complex mathamtical/scientific principal
> called gut feeling/what seems right. What I do is mark up 100% on the first
> $100 and 50% on anything over $100. 100% markup on big ticket items seems a
> bit excessive to me. But figuring in your education, time ordering &
> measuring, hassle of returning parts to get correct fit/etc. - so many
> reasons the piano owner relies on your judgement in parts selection. This
> little system seems to work well for me.
>
> Wholesale part cost $85 - Retail price is $170.00
>
> Wholesale part cost $185 - Retail price is $327.50
>
> Wholesale part cost $1085 - Retail price is $1,677.50
>
> What do others do?
>
> Terry Farrell
> Piano Tuning & Service
> Tampa, Florida
> mfarrel2@tampabay.rr.com