marking up parts

jvegas

Does anyone have a guide line to marking up your parts

Yuri

We used to 2x everything and if under $100 then 2.6x. Plus travelling time to pick it up. Company I work for uses flat rate but for special jobs uses the 2 and 2.6x markup etc.

mechanicalDvr

Cost under $100 x 3, $200 x 2.5, $300+ x 2

jvegas

thanks guys for the guide line

milk man

I read where you need to mark up the small cheap stuff like wire nuts and spade connectors like 3.5 times because there is a lot of spoilage like loosing / forgetting to charge for them.

jvegas

Seems to make sense thanks milk man

beenthere

Very little need to mark up wire nuts, or connectors for service.
If your replacing something that normally needs wire nuts, or connectors. You can either use a misc charge.
Or, include them in the part cost.

EG: A condneser fan motor.
Fan motor+ capacitor+wire nuts+wire ties=X.
X times your mark up = cost of motor to your customer.

Some customers, don't like to see a charge for the little items like wire nuts. Specially, when they know they can buy them for a lot less at a box store.
So its often better to include those kind of items with the part.


Including them in your motor change out, Long method EG:
Condenser fan motor, $80
Dual run cap, $12
Wire nuts/wire ties, $0.25
Spade connector, $0.15
Total = $92.40
92.4 X 3 =$277.20
Plus your labor/service charge.

Easy way. Exclude the wire nuts, ties, and spade connectors.
And add them as a misc cost/price, after figuring out your price for the motor and cap. EG:

Condenser fan motor, $80
Dual run cap, $12
Sub total=$92.0
$92.00X3 =$276.00
Misc $5.00
$276.00+$5.00 misc = $281.00
Plus your labor/service charge.

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How many times must one fix something before it is fixed?

surenuff

I mark up all parts based on a 40% profit margin, and equipment on a 25-30% profit margin. On all jobs requiring the use of wire nits, pipe dopw, soap, solder, etc. I just charge a misc. charge for sealers, welding materials, and the like.

beenthere

Profit margin? Or just 40% mark up?

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How many times must one fix something before it is fixed?

surenuff

Been there, this is sure nuff friend. Profit margin buddy not mark up.

surenuff

I actually take cost times 1.7 which is a little more than 40% but not by much. It ends up being 39.6966966&(#*&@^#%^$_). Or if I have my good calculator, it gives me price at 40% margin, but the 1.7 is so close I don't worry about it. I don't make the price most do on small parts, but I make more on big items than they do. To me this is just simpler, and I need simple.

beenthere

Was just curous.
So many people think multiplying by 1.4 is a 40% profit margin.

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How many times must one fix something before it is fixed?

surenuff

Yea I know. 1.4 won't pay the bills. I use to not be too good with business. I operated my business for years before I started learning how. I was a great tech, but not too good in the office. But I learned alot, and I am still learning. Hey listen. You obviously have a big hvac background, but you spend too much time on all these sites to do much of it now. What do you do for a living?

beenthere

I sell for a friend.
And still run service for myself.

I hate to install. LOL

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How many times must one fix something before it is fixed?

Dinosaur

Do we worry so much about a 40% Cause the garus in the trade established this for us. Ever go to a department store or a car lot or a food store or anywhere? Oh ya you pay 40% there too. ???? NOT! When are we as a trade going to start charging what we need to to make a decent living, have a retirement, and the ETC'S other people have? I like the 1.7 idea, better yet 1.75. Next one do we drive to the supply house to get the part and forget the time that it took? I used to believe if I used the part 4 times a year and I didnt have it on the truck the trip was my cost. Now I believe, as the big guys do, all time energy and materials expended for a job get's billed! Yep the customer complains about the bill but they complain no matter what so make what you deserve.

Dinosaur

Probably older than all here rofl. Love Jr.

beenthere

How old are you.

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How many times must one fix something before it is fixed?

beenthere

PS: If your using 1.75 as a mark up multiplier. Thats about 31.8% profit.

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How many times must one fix something before it is fixed?

Dinosaur

old 64

beenthere

No wonder your math is off. LOL

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How many times must one fix something before it is fixed?