<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:st1="urn:schemas-microsoft-com:office:smarttags" xmlns="http://www.w3.org/TR/REC-html40"> <head> <meta http-equiv=Content-Type content="text/html; charset=us-ascii"> <meta name=Generator content="Microsoft Word 11 (filtered medium)"> <o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="PostalCode"/> <o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="State"/> <o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="City"/> <o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="place"/> <o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="PersonName"/>  <style>  </style> </head> <body lang=EN-US link=blue vlink=blue> <div class=Section1> >>Marking up parts to enhance profit blurs this edge we have and want to keep. <o:p></o:p> Do you charge for the time on the phone to the parts supplier, the time to gather the shipment before going to the customer’s house, the time it takes to manage the overhead of having a supplier with an open account, the time invested in managing an inventory of parts (let alone the costs of the cabinets and boxes to store them), the opportunity cost of money invested in an inventory of parts? <o:p></o:p> <o:p> </o:p> There is a real cost involved in handling parts and maintaining inventories. Setting a markup is only allowing yourself to make a profit from that investment of labor and resources. Failing to set a markup only means you are losing money (or failing to value yourself), unless you pad your standard labor rates. It’s simple economics. <o:p></o:p> <o:p> </o:p> <div> Dean<o:p></o:p> <u1:PERSONNAME u2:st="on">Dean May</u1:PERSONNAME>             cell 812.239.3359 <o:p></o:p> PianoRebuilders.com   812.235.5272 <o:p></o:p> <u1:PLACE u2:st="on"><u1:CITY u2:st="on"><st1:place w:st="on"><st1:City w:st="on"><u3:place u4:st="on"><u3:City u4:st="on">Terre Haute</st1:City></u3:place></u1:CITY></u3:City> <u1:STATE u2:st="on"><st1:State u5:st="on"><st1:State w:st="on">IN</st1:State></u1:STATE></st1:State>  <u1:POSTALCODE u2:st="on"><st1:PostalCode u6:st="on"><st1:PostalCode w:st="on">47802</st1:PostalCode></u1:POSTALCODE></st1:PostalCode></st1:place></u1:PLACE><o:p></o:p> </div> <o:p> </o:p> <div> <div class=MsoNormal align=center style='text-align:center'> <hr size=2 width="100%" align=center tabindex=-1> </div> From: pianotech-bounces@ptg.org [mailto:pianotech-bounces@ptg.org] On Behalf Of paulrevenkojones@aol.com Sent: Wednesday, February 13, 2008 1:26 AM To: pianotech@ptg.org Subject: Re: Mark-up (was Steinway parts)<o:p></o:p> </div> <o:p> </o:p> <div> David: Since we started this business (now businesses) lo these many decades ago, our original posture was to evaluate our "value", set it in a dollar/hour labor cost, and never ever add on to parts costs. It forces us to continually do the hardest thing we as independent business people do: calculate our own worth in world on a regular basis, balance what we need and want, and then make decisions for the profitability of our businesses. Culturally, we're trained to be valued by external forces (you're worth X, so that's what we'll pay you because it's the "competitive" value that's been established). Valuing ourselves is likely the hardest, but most productive, business activity we can undertake. Marking up parts to enhance profit blurs this edge we have and want to keep. Paul<o:p></o:p> </div> <div> <o:p> </o:p> </div> <div> <o:p> </o:p> </div> -----Original Message----- From: David Andersen <david@davidandersenpianos.com> To: <st1:PersonName w:st="on">Pianotech List</st1:PersonName> <pianotech@ptg.org> Sent: Tue, 12 Feb 2008 8:56 pm Subject: Re: Mark-up (was Steinway parts)<o:p></o:p> <div id="AOLMsgPart_0_595afc1e-11be-4d18-9e20-fe51673e0a4d"> I don't use a mark-up either; I just charge a hell of a lot for my labor....  xoDA    On Feb 12, 2008, at 12:46 PM, <a href="mailto:A440A@aol.com">A440A@aol.com</a> wrote:    >  > << Me thinks that the issue is that most techs (as well as mechanics,  > computer repair, plumbers, etc) build in a profit margin on parts > and if  > the general public knows the ACTUAL cost, they might raise a stink > about  > it. >>  >  > I suppose this is so, however, I don't use any mark-up. I > tell my  > customers that the price they are charged for parts is my cost, and > the reason  > my prices are higher than my competitors is that I charge a lot > more for my  > labor. They don't seem to mind, especially when they have been > given a higher  > price for parts by another tech!  > Regards,  >  >  >  > Ed Foote RPT  > <a href="http://www.uk-piano.org/edfoote/index.html" target="_blank">http://www.uk-piano.org/edfoote/index.html</a>  > <a href="http://www.uk-piano.org/edfoote/well_tempered_piano.html" target="_blank">www.uk-piano.org/edfoote/well_tempered_piano.html</a>  > ************** The year's hottest artists on the > red carpet  > at the Grammy Awards. Go to AOL Music.   > (<a href="http://music.aol.com/grammys?NCID=aolcmp00300000002565%29%3C/HTML" target="_blank">http://music.aol.com/grammys?NCID=aolcmp00300000002565)</HTML</a>>   <o:p></o:p> </div> <div> <div class=MsoNormal align=center style='margin-top:7.5pt;text-align:center'> <hr size=2 width="100%" align=center> </div> More new features than ever. Check out the new <a href="http://o.aolcdn.com/cdn.webmail.aol.com/mailtour/aol/en-us/text.htm?ncid=aolcmp00050000000003" target="_blank">AOL Mail</a>!<o:p></o:p> </div> </div> </body> </html>