Supply house confidentiality on prices

[David Love]

I don't see any reason to jump into the confessional here.  Though it is
understood that there is a markup, I don't consider it sleazy to withhold
the
wholesale price.  There are very few industries where the cost of the item
is a matter of public knowledge.  The point is really whether or not the
wholesale price is, in fact, a wholesale price.  If I am reselling something
for profit and buying that product from a supposed wholesaler, then I should
be able to trust that a retail customer without an account cannot also buy
the same item at the same price.  If Schaff or any other supplier wants to
offer its products to the retail market, that's fine, but they should be
consistent in their representations.

I think it can be embarrassing if it turns out that the price we are marking
up is already the retail price.  If I knew that beforehand, it would
probably change what is a commonly accepted practice of marking up for
profit.  If someone wanted me to order a retail item for them, then I would
charge a fee for my labor and efforts depending on, as you mentioned, the
time involved.  But the markup on an item does not always represent a fee
for time and effort.  Presumably, the wholesale price given is in
consideration of volume, transportation, capital considerations with respect
to maintained inventories, and other market considerations by the suppliers.
Whether or not you choose to charge a handling fee or a markup, or both, is
really not relevant to the issue of the suppliers' obligation to be
consistent in their policies.

David Love


----- Original Message -----
From: "Susan Kline" <sckline@attbi.com>
To: "Pianotech" <pianotech@ptg.org>
Sent: October 15, 2002 5:00 PM
Subject: Re: Supply house confidentiality on prices


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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pianotech list info: https://www.moypiano.com/resources/#archives