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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.
 

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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.
 

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Discussion Starter · #6 ·
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.
Seems to make sense thanks milk man :thumbsup:
 

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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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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.
 

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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.

Profit margin? Or just 40% mark up?
 

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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.
 

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

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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?
 

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

I hate to install. LOL
 

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Why? And 40%

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.
 

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