Parts Markup

[Clyde Hollinger]

Paul,

In my opinion it depends on how much a person needs to depend on the markup to
stay in business.  For example, a grocer needs to mark up everything because
sales of products is the only way he can stay in business.  At the opposite end
would be those who sell only their time, for example psychologists.

In the piano industry some of us are at the one end while some are at the other.
The closer one gets to doing only service, the less important income from parts
becomes.  If 99% of your income is from tuning and regulating, you could even
*give* the parts away.  I still wouldn't always do that, since 1% of , say, a
$30,000 annual income is still $300.

To simplify my bookkeeping all my charges are to the nearest dollar.  If a piano
needs 5 flanges at 90 cents each, I will charge the client $4.00, which is 50
cents less.  I give parts away if I feel they cost so little that it's too much
bother to bill for them (a couple punchings, maybe).  For something I don't want
to give away, such as a 40-cent part, I have a minimum parts charge of $1.00.  I
have always felt good about that since I saw in a piano store twelve years ago
the minimum parts charge was $8.00.

Regards, Clyde

Yardarm103669107@AOL.COM wrote:

> 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