Supply house confidentiality on prices

gordon stelter lclgcnp@yahoo.com
Tue, 15 Oct 2002 18:08:44 -0700 (PDT)


Me too. If they grumble, I tell customers that if I
don't charge for time and effort to order something, I
can't eat or pay my utilities, stay in business, and
the next person who wants my expertise will have to do
without! This they usually understand. Sometimes I
also say: "I'd love to do that, but, unfortunately,
Bell South and Georgia Power aren't as kind, so I
really need to charge "X" to pay these bills." 
This, as it is true, usually engenders sympathy! I DO
find it curious, though, that SO MANY customers who
would think nothing of paying $60/hr to have a
high-school drop out work on their car will grumble
about a $40/hr house call by a clean, relatively well
educated and mannered, experienced tehnician! 
     There is also the education factor. In many
occupations one goes to a college or university,
spends a great deal of money then enters some field
and is paid more as their expertise continues to grow.
Years doing 30$ tunings and gathering experience by
working on stuff too cheaply is like that educational
investment, and at some point we need to repay the
"student loan". If customers don't like it they can
hire someone cheaper with little experience and take
their chances. It is up to us to educate customers on
the difference ( nicely, if at all possible ) so that
they can make the choice that is right for them.
     It is degrading to let customers "dicker you
down", ( especially when they're far wealthier than
you ) and I don't let them unless there is a some very
clear and present hardship ( mine or the customers ).
     Gordon

--- Susan Kline <sckline@attbi.com> wrote:
> It seems to me that the only reason for complaint
> is that we don't want customers to know how much
> we mark up.
> 
> What would happen if we let it all hang out, and
> just
> told them that we mark up X%? Is the markup
> defensible,
> or is it not? If the size of the markup doesn't
> embarrass
> us, there's no reason to worry -- just tell the
> customer that if they want to order the stuff
> directly,
> and Schaff will sell to them, go ahead -- but if
> they
> have a problem with it, or if it's too much nuisance
> for them to order it themselves, the cost of us
> handling
> it will be X. They already know that if they buy
> something in a store, the store bought it wholesale
> and marked it up. Why should it be different, buying
> from us?
> 
> Sometimes we seem embarrassed even to be in
> business.
> Why should we?
> 
> Percentage markup versus a handling fee ---
> Is percentage really the best way to mark up items?
> Shouldn't we mark up something depending on how much
> time and effort is needed, how much trouble is
> anticipated, and how long we have to keep it in
> stock? Do we need to measure for the item? Will it
> have to be fitted? Is it heavy for us to carry?
> Can it be drop-shipped or will we have to haul it
> ourselves? Does it need installation?
> 
> I drop-shipped several Edwards string covers, and
> the owners put them on. They were made to fit from
> the
> model number -- I didn't need to measure for them.
> On the other hand, if they hadn't fitted (they did)
> it
> would be a hassle to pick them up, measure the
> piano,
> and return them; but the shipping would be very
> little.
> 
> I drop-shipped a narrow door piano truck -- I had
> to show the people which trucks were available,
> get them a quote for the narrow doorway truck
> with estimated shipping cost, explain to them that
> they were going to have to install it themselves,
> measure the piano, order it, pay for it ... it was
> delivered, and they didn't see how it was supposed
> to go. I had to go back, measure the truck, measure
> the piano again (perfect fit) and then phone them
> to explain how they should go about installing it.
> I also had a week or so of wondering if I'd made
> a mistake with the measuring, and if so, who was
> going to pay for it. (One guess ...)
> 
> In retrospect, I should have marked it up a lot
> more than I did, and the string covers didn't need
> as much markup.
> 
> I believe it was Tuners Supply which issued a price
> list which included 100% markup. This always seemed
> sleazy to me, since the only reason I saw for it
> was to show to customers, to try to pretend to them
> that retail was wholesale. I'd much prefer for
> everyone to know exactly what was going on.
> 
> Just MHO.
> 
> Susan
> 
> _______________________________________________
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