marking up parts

Dinosaur

See thats what happens when you learn the new math. I actually use flat rate was jjust tryyin ta help/ Lookie now the spelling is off. Actually its the area, How about the last box truck I had Lettered and the guy spelled Air Conditionining.

surenuff

I did not decide what price to charge from asking someone at a restraunt what they were charging. I have read book s from people and been consulted by people who make profitable hvacr business for a living. These people take good companies and make them great. 40% will make a good living and profit. What do you mean make more so you can make it. If you are truely (heavy on the truely) making 40% then you whould be doing well. If you are not, it is not your margins, it is how you are spending money. I have looked at flat rate, and more and more customers do not have a choise. But I think 350-400$ for a psc condensor fan is a bit high. 200$ for a run capacitor. I charge based on time and material, and I don't give either away. I feel like good because I made a profit, and I fell good because I did not bend the customer over. NOT SAYING that all flate rate pricers out there are bad. I know a lot of the programs can be taylored and have prices set at what you want. 1.7 is a little better than 40% I can work it on paper or get out my handy dandy financial calculator, and they both agree with me.

surenuff

And by the way, Labor rates are set after doing break even work sheets and knowing what true overhead and operating expenses are. I am not a accountant or a super great business man but I can read. I am not a very smart man but I know what profit is.

Dinosaur

Based on your reply to BEENTHERE and myself it is clear you are of superior intellect and need no response to your post. Carry on dude Ive got work to do.

Dinosaur

Is there an ignore button on this site?

beenthere

You must be using 10% as your over head figure then.

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

Dinosaur

As my Economics Professor in college used to say,

" Profit in any given economic situation is directly related to the relationship between guns, and butter, therefore we must realistic base our expectations of profit on the entire economy and not on a percentage of our pie".

Could this be the answer?

beenthere

A good part of it. LOL


With few exceptions. I have never known for sure what part/parts if any, a service call will need/use. So there is no way I can know my over head for that service call alone. Let alone for the year.

Many base/figure over head as an absolute cost/fixed value that can't change from one season to the next let alone by the day. When it does indeed vary by the day.

A day with 6 service calls has a lower $ overhead then a day with only 1 service call. But so many calculate the same percentage for the year.


#1 rule of business. There is NO Santa Clause.

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

surenuff

I sure was not saying I was smarter than anyone. I was responding to a remark made back at me about how I came up with my margins. It has worked well for me for many years, and like I said came from advice and reading of people a lot smarter than me. (once again, never said anything about superior intelect.) You say you have too much work to do to talk to me and wish you could ignore me, whatever. YOU sure have the time to come back and bash me when I said nothing about you at all.

Dinosaur

"but you spend too much time on all these sites to do much of it now. What do you do for a living". [/quote]

Not here to bash you here to help. Once again 64 yrs old, learned the hard way, the last ten years have been a double education, both in our economy and going to classes. If I knew then what I know now I would be retired touring the country in a motorhome, naw enjoy the trade too much.

surenuff

I said what I did to "been there" about how much time he was on here because of the job he does here and on the other site. He's here all day everyday, not just evenings and weekends like me. I was not even talking to you. Not here to bash me??? That would be easier to believe if you were not such an ass in what you write. My posts were not attacking anyone, they were defending my previous post where you made the comment that I base my pricing from a restraunt and some other ridiculous ideas. I have only been on these posts recently when I found myself not able to be invloved with the day to day as much as normal. I have learned a lot from this and the other site and enjoy it for the most part, but a lot of people out there are a lot more interested in starting crep than actually sharing some knowledge or helping someone understand their mistakes. Hell, this all got started when someone asked what we use for a markup price, and I said I used a 40% margin. Then BT came back and asked margin or mark up. etc.. then you bashed me and said I was stupid or something.

beenthere

LOL...


Helps when most of your work is in sales.

Not here or other sites all day though. Seems like it sometimes though.

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

surenuff

My mistake then, it seemed that way

beenthere

I do lots of pricing/bidding from my computer.

My email is set to check for new messages every 5 minutes or less. Not sure exactly what I have it set for. But when I get a price or bid request emailed to me. I don't want it to take 30 minutes or more for me to know about it.

So notifications from forums also come in quick. And I respond to them what ever time of day I happen to be at the computer. And have time to answer.

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

surenuff

yes sir, but antime they come in day or night from what i can see. On top of this, you seem to know what is going on on at least two different chat rooms and probably more all the time to the point that you also know where all the posters are from and are involved with the admin of at least one of these sites. I think you should be able to see why I would think you are here all the time.

beenthere

I'm a mod at 2 sites. A regular member of several other sites.

I do a fair amount of estimates. So working out of my home. I have lots of time to access the web.

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

surenuff

I'm just an ole chunk of coal, but I'm gonna be a diamond someday.

John Markl

The flat rate program gives those markups, but I don't have it on this computer. In fact, the book says NOT to mess with the markups.

Dinosaur

Lets break this down: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! 40 % is a mystical number that someone somewhere decided was a fair and profitable number. My referance to car lots or restaurants or food stores is because they set their prices based on what they need to profit and survive. I was not suggesting to go to any of these, just using them as an example of what others do. If a Any of these types of stores say in La were using .40 would it help a small Mom & Pop store say in Erie Pa. to use .40? I tink not economies are different in all areas and .40 may or may not work for all so why do all use the number?

surenuff

who's benifit is this for? I have already heard what you had to say on the subject. My point was that I did not base my margin on what any of those other business did, but what I needed. I said it to answer a wuestion that was posted, and then you were rude as hell. Then I answered back and you got a big kick out of that too. Then you tried to tell me you were too busy for that. Yea right.