# parts mark-up...???



## Aliftheplumber (Nov 15, 2009)

Hey All,

I was wondering if someone could give me an idea of how they mark-up their parts? We are trying to keep our costs reasonable but still something seems to be missing, I'd like to make some adjustments at this point in time, but as we've already raised our rates recently to a more competitive rate it doesn't seem fair to do it again so soon.

Any input would be a great help.

Thanks
Alif & Sharley


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## Master Mark (Aug 14, 2009)

*give them the parts*

we are running intothe same troubles...
they go to lowes and see the parts and know
what they are worth..... they they piss and moan about dollar mark up on them....

just give them the parts for cost and bump 
up the labor to cover it.... 

 seems to work for me:yes::yes:


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## Werstroh (May 29, 2011)

Out here in sask Canada if I get a 60000 btu furnace for 800 the going rate is like 1800 so I go with the flow but I usually do thirty percent on most things.


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## Aliftheplumber (Nov 15, 2009)

Well that's where we are having the trouble. We keep our parts decently below store prices and still have a decent mark-up, and any big parts we mark up about 30% and little stuff we can manage about 150% and still be way below store prices. We charge $75/hr across the board which seems just enough to keep us busy. I think if we went up with our hourly rate we would lose that competitive edge, as there are a LOT of plumbers in this town. We try to go by customer service and quality workmanship, but it's just enough to keep us afloat, and we're just getting into our second year. We want to get ourselves a little more established where we can say thanks y'all, we've been doing so well we need to expand and have to raise our costs a little.


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## hroark2112 (Apr 16, 2011)

Anytime someone gets on the "But I can buy at it Lowe's for $10!" whine-fest, I tell them that my price includes my warranty, overhead, and it doesn't really matter anyway , due to the fact that I don't buy my parts at Lowe's!

If they want to pay $10 for something, they can go buy it, I'll install it and my warranty covers nothing. If it leaks 3 hours after I leave, it's full price to return to install the right parts.


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## futz (Sep 17, 2009)

Aliftheplumber said:


> ...there are a LOT of plumbers in this town.


Hehehe :laughing: That's why they call it "The hungry valley", boom & bust capital of B.C. :laughing: I grew up in Kelowna. Left around 1987 and never came back.


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## smudge (Jan 19, 2010)

Aliftheplumber said:


> Hey All,
> 
> I was wondering if someone could give me an idea of how they mark-up their parts? We are trying to keep our costs reasonable but still something seems to be missing, I'd like to make some adjustments at this point in time, but as we've already raised our rates recently to a more competitive rate it doesn't seem fair to do it again so soon.
> 
> ...


 
Is it fair if you go out of business? Not to get in to a debate on how or what to charge, but you need to know what it costs to run your business. The best thing I did was stop breaking down my invoices and itemizing things for people. Small things you can mark up a lot. I also use products that are not available at box stores. I try and sell Gerber or Toto for toilets. You must inform your customers about all the hidden costs ie: flux, solder and such


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## robwilliams (May 6, 2011)

smudge said:


> Is it fair if you go out of business? Not to get in to a debate on how or what to charge, but you need to know what it costs to run your business. The best thing I did was stop breaking down my invoices and itemizing things for people. Small things you can mark up a lot. I also use products that are not available at box stores. I try and sell Gerber or Toto for toilets. You must inform your customers about all the hidden costs ie: flux, solder and such


 
Ditto! I don't break things down either. I give one price that includes the parts/materials and labor. If the customer thinks it is too much, I tell them, I am here now, with the correct parts to complete the job. Do you want me to do it? They say, go ahead. If not, they owe me for a service call and I go to the next job.


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## smudge (Jan 19, 2010)

Aliftheplumber said:


> Well that's where we are having the trouble. We keep our parts decently below store prices and still have a decent mark-up, and any big parts we mark up about 30% and little stuff we can manage about 150% and still be way below store prices. We charge $75/hr across the board which seems just enough to keep us busy. I think if we went up with our hourly rate we would lose that competitive edge, as there are a LOT of plumbers in this town. We try to go by customer service and quality workmanship, but it's just enough to keep us afloat, and we're just getting into our second year. We want to get ourselves a little more established where we can say thanks y'all, we've been doing so well we need to expand and have to raise our costs a little.


you charge 75.00 to keep busy! You need to charge enough to make money! If 75.00 is enough to make a good profit then so be it but if you want to last in business you better find out what you need to make. You can sit on your arse and not make money,why go out and plumb not to make money. Sorry if I'm harsh, but them is the facts.


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## Aliftheplumber (Nov 15, 2009)

smudge said:


> Is it fair if you go out of business? Not to get in to a debate on how or what to charge, but you need to know what it costs to run your business. The best thing I did was stop breaking down my invoices and itemizing things for people. Small things you can mark up a lot. I also use products that are not available at box stores. I try and sell Gerber or Toto for toilets. You must inform your customers about all the hidden costs ie: flux, solder and such


We've been going through a pretty big learning curve and figuring things out as we go. We finally have an account with the supplier and we do charge extra for shop supplies as well, on top of the parts. We're getting better customers now that the word is out about who we are, but it seems odd to be constantly changing things. I'll be taking a 'how to run your own business course' pretty shortly I think!


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## Aliftheplumber (Nov 15, 2009)

smudge said:


> you charge 75.00 to keep busy! You need to charge enough to make money! If 75.00 is enough to make a good profit then so be it but if you want to last in business you better find out what you need to make. You can sit on your arse and not make money,why go out and plumb not to make money. Sorry if I'm harsh, but them is the facts.


Criticism is what it is, just depends on how you take it. I asked the question - you gave an answer! :thumbsup:

We're just trying to get our name out there, and people weren't hiring us for more than that previously. Contractors out here will definitely not hire us for that much. Too many others that are willing to undercut the little guy, whether we do a better job or not.

We started this company when everyone was still feeling the hit of recession. Nobody was hiring, but people still need plumbers and were calling us, enough to keep busy. Before the company started we were charging $50/hr for friends and family, then we started at $70, but it was a lot of people we knew and little old ladies hemming and hawing over the prices. We figured a $5/hr hike was big enough for our loyal customers, and the past few months, after winter, we got busier than we imagined we would. 

Anyway thanks for your answers everyone, I'm definitely going to get looking into our overhead and see what we can do. You think another $5 hike before summer hits would do it? :whistling2:

PS Here's a good one. If you aren't itemizing parts, how do you keep track of inventory? I know our accountant was sort of keen on making sure that was up to date...


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## Aliftheplumber (Nov 15, 2009)

futz said:


> Hehehe :laughing: That's why they call it "The hungry valley", boom & bust capital of B.C. :laughing: I grew up in Kelowna. Left around 1987 and never came back.


And a lot of people with nothing better to do with their time than build new houses! We actually don't mind those sometimes, cuz then we get to fix a LOT of mistakes!:thumbup:


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## Ashleymc (Nov 14, 2009)

*how much..*



Aliftheplumber said:


> Hey All,
> 
> I was wondering if someone could give me an idea of how they mark-up their parts? We are trying to keep our costs reasonable but still something seems to be missing, I'd like to make some adjustments at this point in time, but as we've already raised our rates recently to a more competitive rate it doesn't seem fair to do it again so soon.
> 
> ...


are the docs and drug companies gonna mark up their products and services after your knees,back and elbows are blown out after 30 yearss in this trade??
In Ct. $75 hr is a giveaway ..I dont itemize anything cept my price and tax.
And i average $150hr or so PLUS the call charge..Take it or leave it.
I know some competitors charging more!Much more.
Ask a national chain like RR what they get
Why should anyone work for less? 
You can work hard or smart ..:jester::jester:


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## OldSchool (Jan 30, 2010)

It doesn't matter what a customer can buy parts for at home depot or lowes...The stuff you supply is being delivered by you and it is a matter of convience...So for convience of coarse the customer is going to pay more than a box store...You guys got to start learning .... to stop thinking what the customer might say and do what you have to do..... and that is to make a profit.....mark up things ... as high as you can ... minimum 30% adverage 65% and on smaller stuff 100% plus...But always remember... don't rely on part sales to make a living.... your hourly rate should cover it all...... materials sales is just the gravy to your meat and potatoes


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## Chetter (Oct 4, 2008)

.10 to $5.00 x3
$5.01 to $10.00 x2
$10.01 to $50.00 x 1.67
Over $50.00 x 1.5


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## Plumberman (Jul 7, 2008)

Cheeter, stop by the intro section and post one up, if not your fixing to have some heat flying your way...


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## RW Plumbing (Aug 16, 2010)

OldSchool said:


> It doesn't matter what a customer can buy parts for at home depot or lowes...The stuff you supply is being delivered by you and it is a matter of convience...So for convience of coarse the customer is going to pay more than a box store...You guys got to start learning .... to stop thinking what the customer might say and do what you have to do..... and that is to make a profit.....mark up things ... as high as you can ... minimum 30% adverage 65% and on smaller stuff 100% plus...But always remember... don't rely on part sales to make a living.... your hourly rate should cover it all...... materials sales is just the gravy to your meat and potatoes


I completely agree on this one. I have these parts in my trailer, they don't have to get them. Also I bought a super cheapo popup from Home Depot, and compare it against the ones I put in when a customer complains about I can get this for this. It was the best .99 cents I ever spent. I take a pair of channelocks and snap off a small peice and say if you want this go to the big box, if you want quality then use my parts.

It took me a long time to realize that your #1 goal in business is to make money. I get calls all the time for people looking for a price on this or that, they're always thinking like 20 bucks and i'm in the hundereds. It will be done right when I leave, not hacked together.

I sell lots of repipes. I make a good dollar on them, and the reason is I offer a 5 year warranty no questions asked on piping. If you do it right, it will last 25 years easy. I don't put in CPVC garbage, and I don't use Home Depot pex fittings. Professional products yield professional results.


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## pxt (Jun 28, 2011)

Its important to make money from parts. Alot involved!.......1. you have to know where to get parts 2. know what to get 3. get it back to job. All for free..... no way!


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## cityplumbing (Jun 12, 2010)

I would analyze a few things and maybe make changes there like trips to the supply house which costs a company labor and gas..
Try buying more of what you are using by analyzing some past supply-house receipts and popular service calls.
See if you can get a better price on the material your buying and sell it at a price comparable to the big home stores..
Also point out that the materials that are sold at the big home stores are of a lesser quality than what you sell which I know for sure some faucets and fixtures are made differently to be able to meet those prices and of course they are being delivered by you and you know exactly what they need...


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## AllAces777 (Nov 23, 2010)

Prices are something that are constantly analyzed on a daily basis. Most of the information found here could be placed in beginners guide to business, its all good reading. Thanks to everyone for posting on this, it is definitely one of the most time consuming and stressful factors in the biz.


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## Tommy plumber (Feb 19, 2010)

Chetter said:


> .10 to $5.00 x3
> $5.01 to $10.00 x2
> $10.01 to $50.00 x 1.67
> Over $50.00 x 1.5


 





I like those numbers, maybe I'll use 'em when I make my new flat rate book.


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## mtfallsmikey (Jan 11, 2010)

Tommy plumber said:


> I like those numbers, maybe I'll use 'em when I make my new flat rate book.


My old markup curve was a little higher than that, anything up to $25 or so got 100%.

The "I can get it at Blowe's cheaper" arguement gets shot down real quick by saying "But I delivered it to you".


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