Parts Markup

JIMRPT@AOL.COM JIMRPT@AOL.COM
Wed, 7 Mar 2001 21:57:48 EST


Richard W. wrote:
<<" Jim- I followed your logic right up to the "aint' dat right"- you left us
all hanging there by not telling us what you would charge for the
hypothetical casters- I know many businesses would mark up the delivered
price by 30% or more, which would put the retail price for these at $55.00
or more.   Would your customer baulk at this price?">>

Gollleee Richard don't put me on the spot like this! :-)

 Generally speaking my personal markup on any small accessory item is 100% 
...buttttt it also depends on what pricing is on the item...for instance
that set of caster cups which cost me $21 I would probably "mark up" 100% + 
shipping......... but let's suppose they cost me $90...in this case I would 
stick to the MSRP "mark up" of 40% for a final cost of $126. I would never 
sell any accessory for only cost plus shipping...although that being said I 
quite frequently include such things as caster cups at 'no charge' to my 
customers as part of a rebuild or even a major repair job. In these instances 
though I keep a stock on hand and don't have to order as a one time thing so 
the cost is spread out, there is no extra delivery involved and it makes me 
feel good...this is a customer service as well as 'self' service.

 There are really two things that we need to keep in mind in the accessory 
area and that is our time and the cost of our money.

 The money comes from customers, of course, but if we have to dedicate a 
portion of it to buying accessories for a partcular customer then that amount 
is unavailable to us for other uses which might be more needed or profitable.

 Our time is of course the only thing we have to sell and the only thing that 
does not involve merchandise and while we can readily get more merchandise we 
can never get more time......value your time...it's all youv'e got.
Jim Bryant (FL)


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