# Parts Mark Up



## mialle30 (May 10, 2010)

How do you guys mark up parts? Do you use a straight percentage or a tiered method such as $1-10 is 50%, $11-20 is 45% ect.


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## OldSchool (Jan 30, 2010)

just multiply everything by 2


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## Redwood (Sep 8, 2008)

I double the price or, triple the price if I feel like it... :laughing:


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## ranman (Jan 24, 2010)

OldSchool said:


> just multiply everything by 2


same here


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## gear junkie (Jun 20, 2008)

30% for everything.


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## SummPlumb (Feb 19, 2010)

The cheaper items, ie..wax seals...8.00 Commode bolts, 10.00...You get the point? 

More expensive items, 20% or more.


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## AKdaplumba (Jan 12, 2010)

i think 30% is fair.


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## rocksteady (Oct 8, 2008)

For most things that cost more than $25 I'll go 30% to 35%. For the cheaper stuff I usually double it.







Paul


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## Phat Cat (Apr 1, 2009)

Same as above with the following exception:

Box store / common knowledge items have slightly less mark-up.

Specialty items are marked up more.


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## DUNBAR PLUMBING (Sep 11, 2008)

Emergency calls get different product pricing over normal rate pricing.


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## Mongrel (Mar 4, 2010)

Interesting, since I've been struggling with this for awhile.

A couple questions...

1. Do you pay tax on your supplies when you purchase them?

2. If you do pay tax do you mark up before or after adding the tax? (potentially stupid question I know).

3. Do you mark up those items that you may be or had to purchase at a home center or do you deal exclusively with supply houses?

4. On a related note, do you find that the home centers actually beat your supply houses on stuff? Based on the prices I'm getting from my two local supply houses, I can easily beat them on stuff if I went to Lowe's or HD. Should I just tell my supplier this and hope I get the better pricing? (admittedly this is probably because I'm a 'new' guy. BUT I pay CASH on everything I purchase, so it pisses me off a bit).

Anyway, what I have been doing so far is marking up 25% on everything before tax. Seems like I may be leaving money on the table. But, as someone mentioned above, it seems potentially awkward charging $12 for an item the home owner can get for $6 at the home center. 

Great topic by the way...


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## smellslike$tome (Jun 16, 2008)

Mongrel said:


> Interesting, since I've been struggling with this for awhile.
> 
> A couple questions...
> 
> ...


They always have the option of going to the home center and purchasing that product themselves at which time they can return to their homes and install it themselves.


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## Redwood (Sep 8, 2008)

smellslike$tome said:


> They always have the option of going to the home center and purchasing that product themselves at which time they can return to their homes and install it themselves.


Or, I'll gladly install it for them at my normal rate and the only guarantee from me is that I installed it correctly...

If the part they buy is defective or, dies a month down the road, "Sorry to hear about it."

My money is in the pocket and stays there...:laughing:


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## Phat Cat (Apr 1, 2009)

> Mongrel said:
> 
> 
> > 1. Do you pay tax on your supplies when you purchase them?
> ...


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## OldSchool (Jan 30, 2010)

Mongrel said:


> Interesting, since I've been struggling with this for awhile.
> 
> A couple questions...
> 
> ...


We pay the tax up front and charge it to our customers. As for mark up it is on our total expense plus tax. 

We multiply product plus tax by 2.

The product is in our truck and it is still a lot cheaper to pay me more for the part at my rates than run to the hardware store thinking you are saving money.

You should think about opening accounts at the wholesale level... pricing wil be much better once you know your discount for any given product.

From there you can negotiate a better discount with your supplier.


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## Mongrel (Mar 4, 2010)

I wanted to let everyone know that I appreciate their responses to my questions, and to apologize to the OP if I'm treaded on their thread...

Also, I became aware of the home center pricing while picking up some plywood for an unrelated project, figured I wander over to the plumbing section and see what John Q. Public was paying for 'his' stuff... Talk about an awakening, I'm paying over a $1 more a foot for L copper, more for glue and primer, more for my abs and pvc fittings, and so on. I need to have a chat with the guys at the supply house I guess. When I was active in the field I knew the owners, but they sold the place a few years back and I have no relationship to the new guys-they just know I'm legit.

Like I said, I'm still figuring out how to make this all work without screwing anyone (myself included) over. I have nightmares of someone calling the DCA because I charged them $10 for a flapper.

I have to be careful, as I only have so much money set aside to purchase stock, I can't just go in an buy $5000 worth of supplies in order to get the best pricing

Interestingly enough, I did check out some of the online plumbing supply houses (one was called Hodes Co. I think) and if you don't buy like 5 or more of each item, their prices are higher in a lot of instances than the home center pricing.

I know we're supposed to hate those big ugly boxes, but at what point are you cutting off your nose to spite your face? I have to eat, and if I can save over a dollar a foot for copper, why should I feel obligated to a supply house to pay more?

Anyway...basically I'm just pissed cause I feel like I'm not getting any respect and it will probably take me a few years to get to the point where I'm purchasing enough to get it.

Anyone know what the pricing structure is between a single truck shop and a company with a 20 truck fleet? I'd be interested to know how great the difference is. I could imagine one guy paying .58 cents for a flapper and the next guy paying $1.58, I guess that's just how it works...

Thanks again for the responses...

ps-double? You guys are doubling your prices? Man, I'm really losing money! LOL


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## Plasticman (Oct 14, 2008)

If jane/joe home owner wants to leave you at their house while you wait for them to return from the box store cause they can get it cheaper there then fine. Clock is still ticking plus you honor no warranty on the part that they bought or even the labor. That usually shuts them up.


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## Phat Cat (Apr 1, 2009)

Mongrel - You really need to check with your supply houses. In the beginning we did not buy a lot and some supply houses worked with us and others charged us more than every other plumber in town. Fergusons treated us the worst and we still will not buy from them. Ask to speak to the manager and say something like "Hi, my name is XYZ and I've opened up ABC Plumbing. I specialize in ????? and would like to open an account at your supply house. I pay my bills on time. The other day I noticed that the big box stores are cheaper on a lot of items that I purchase from you. I understand I may not be a big buyer yet, but one day I hope to be. Is there anything you can do to work with me?"

Their answer may just surprise you. You may just have to ask for better pricing.

If they cannot compete with the big box and you cannot find it cheaper online, then you have exhausted your resources. Shame on them for pushing into the big box. Can't fault a man for making wise purchasing decisions.


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## Plasticman (Oct 14, 2008)

big box stores carry a line of moen and delta faucets that our supply house can not get, its called diy faucets. They are cheaper and are not of the same quality as we buy. Try telling that to a home owner. They think you are out to rob them blind. These faucets don't even supply the water supply nuts cause they figure the ho will buy a flex supply to go along with it. Some have a crappy rubber gasket to use instead of plumbers putty. Ho is thinking, " what the hell is plumbers putty" ?


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## Mongrel (Mar 4, 2010)

Plasticman said:


> big box stores carry a line of moen and delta faucets that our supply house can not get, its called diy faucets. They are cheaper and are not of the same quality as we buy. Try telling that to a home owner. They think you are out to rob them blind. These faucets don't even supply the water supply nuts cause they figure the ho will buy a flex supply to go along with it. Some have a crappy rubber gasket to use instead of plumbers putty. Ho is thinking, " what the hell is plumbers putty" ?


Thanks, I do understand this part and the difference in quality. So far 90% of the people I've done work for have all provided their own faucets\valves\trim. They had purchased them before they even called me.

The part I'm having a problem with are the bread and butter parts, like ball valves, stops, wax rings, copper tube, PEX, PEX fittings, solder, flux, etc. All the 'traditional' stuff you at one time HAD to go to a supply house for. Heck, I wouldn't mind paying more for a decent plumber's grade faucet-I'd almost expect it. But flux? Solder? Ball valves? No way I should be paying more for that stuff in my opinion.

I have to talk to these guys...soon...


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## Herk (Jun 12, 2008)

I've always separated my material into kinds. For example, if it's bought in a 20' stick and sold by the foot, you have to mark it up more for waste and so on. Small parts can easily be marked up 100%. Faucets and so on I usually get about 50% on and the same with water heaters. Of course, I'm flat rate so the customer seldom sees the cost of the item and labor separately. 

And if they supply their own I have owner-supplied prices so that I still get a markup. There was a time when I asked all the other plumbers in the area whether they mark up materials that are supplied by the HO. They all said yes. These days, they might be giving in and just charging (far too little) for labor. There's always pressure to give yourself away for nothing.

But I'm with Frank Blau on this one. If you have to depend on a markup, you simply aren't charging enough. What do you do when you spend two hours on a faucet and your only material is faucet washers? How can you survive if you're depending on material sales for a good part of your selling price? You need to have a price that you can survive on without dependence on the material markup.


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