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Originally Posted by CFESAmasterEGSR about cold side parts, supply house parts, and stuff like hardware store misc supply purchases like pipe fittings or bolts/screws for a particular job and/or consumables like sand paper or grinding/cut off discs or wire brushes or ice machine cleaning brushes. I would say this is part of your markup. It would be tacky to add such on. You wouldn't expect such things as wine glass breakage fee, toilet paper usage fee, child seat use surcharge and such when you eat out at customer's businesses would you? These things cost money. In my opinion such things should be allocated to general overhead in figuring out the labor rate and markup. It's not worth the time accounting for misc consumables. It would be different if it is a special tools or fasteners you had to order specifically from Fastenal at great expenses or a tool you bought with no foreseeable future use or resale value. Take good notes on what you had to buy to do certain jobs and start building a list. You'd then have a reference on high probability supplies to keep on hand so you can reduce the number of job by job Home Depot shopping.
I noticed a lot of people mark up their parts a crazy amount. I'm guessing it works for some people but you have to look down the road and if you want repeat customers, then you shouldnt charge such high markups. Please pay for your advertising. We have a lot of parts for sale. Some are OEM and some are not. If you want to know for sure just give us a call and we can tell you upfront. Also, we purchase a lot of the parts from the same place most of you buy them from but since we buy so many, we get a deeper discount which ofcourse we pass on to you. Our prices are so low that we have repeat service customers all over the country that keep buying from us. Just saying
Originally Posted by jeichenauer We buy most hot side stuff direct at a full discount so we don't have to worry about this in a lot of occasions but in the situation where I do not get a full discount (less then 50%) I usually just look at my relationship with the manufacture (warranty work, part return policy, handling charges, etc) and determine what I need to do. Cold side parts also depends but we do similar to smurphy with basically a tiered multiplier. One place you also might want to check is CFESA and the manufacture websites for local service companies in your area or close. I don't know about others but we do offer a decent discount to other service companies and they can do a local pickup so they wont have shipping charges. They are also going to more likely stock the parts for what kind of equipment your have in the area. We use all of the parts distributors that have been listed on this forum topic. Just be careful where you have the parts shipped. I know sometimes it can be easier to have it shipped direct to the site but then your giving them a customers address to sell direct to and then next time you will be out installing a part they ordered with no margin. I don't mind at all if a customer wants to order their own parts. (Here in NEPA we have many far-easterners who run tax-free convenience stores with the hopes of screwing as many as they can before cashing out and returning to their home country with enough rupees or sheckles to be considered wealthy). As such I will always install a customer supplied part, but when they fail I do not honor the warranty. Several cases this has caused great consternation to the customer, but you cannot have it both ways- i.e. If you buy and supply, you also assume any risk associated with warranty or breakage. No labor guarantee. I'm off the hook. We mark most parts up 1.5-2 times net, however I will honor labor on all parts for one year. Not bad when you consider some parts only have a 30 day guarantee. We use RE Michels a lot for heating and a/c work and their catalog automatically factors in a 100% markup.
Originally Posted by ECtofix I just can't help to ask this, so... What are some of your opinions about Ecolab's Parts XPress? I ask because I once worked for them. I was employed there when it was Commercial Parts & Service (home office in Indianapolis) back in 1998. Great company. Then they were acquired by Ecolab in 2000 - with service vans relabelled under a new title of the "GCS Services" logo. I just ordered from them this week, for an imperial 6 burner range. They told me there was 3 kinds of pilot assembles, listed in inches. I asked her what the difference was? I had a moment, I know it was the tube length, but she didn't. She calls imperial and tells me there were the wrong parts and was glad she called. She has "front, and back assemblies". I said, sure, I need them all. Sends me the "fronts", there are just universal pieces with LONG flex tubes. She could have just sent me all 6 like that since they are compression fittings.... I don't know, I mean, sure, I got them fast, but a little more knowledge (schematics) on both our parts would have been great. I don't have that problem with Ted at Biro (slicers) that guy knows his stuff.
Restaurant Parts and More.....the most helpful and knowledgable people out there.
Originally Posted by RichO Sorry, but you should not charge customers list price on parts. You need to make a mark up. There are parts out there that cost $27.00 with a $30.00 list. I worked for a company who sold & service foodservice equipment. They have been around for over 30 years. Their standard practice is the greater of list vs double the net. You have to keep in mind that if the part is bad out of the box or bad a week later you will have to replace it on your dime, the supplier may warranty the part but the labor will come out of your own pocket. I don't care what list price is, I charge at least double my cost on small parts major parts are usually 1.5 x net up to double net. I've never had any complaints on parts prices and neither has the company I worked for. Don't be sorry. That's great! I DONT NEED to make a mark up.
Originally Posted by iceman44 Yes we always charge list on food equipment parts. (Hobart excluded) Sorry, but you should not charge customers list price on parts. You need to make a mark up. There are parts out there that cost $27.00 with a $30.00 list. I worked for a company who sold & service foodservice equipment. They have been around for over 30 years. Their standard practice is the greater of list vs double the net. You have to keep in mind that if the part is bad out of the box or bad a week later you will have to replace it on your dime, the supplier may warranty the part but the labor will come out of your own pocket. I don't care what list price is, I charge at least double my cost on small parts major parts are usually 1.5 x net up to double net. I've never had any complaints on parts prices and neither has the company I worked for.
I use partstown 95% of the time, I get a nice discount and free shipping on large orders. As far as mark up goes on non OEM parts or ACR parts, I do 100% on most cheaper parts (<$100), 50% on mid range stuff ($100-500), and 25% on most anything above. I charge travel both ways and bill per half hour on site (I also charge time for picking up parts). If you're good your customers won't mind a bit. And if they ever give you grief about cost you can afford to throw them a bone.
Also remember a lot of these parts distributors hate each other so work them against each other as much as possible.
We buy most hot side stuff direct at a full discount so we don't have to worry about this in a lot of occasions but in the situation where I do not get a full discount (less then 50%) I usually just look at my relationship with the manufacture (warranty work, part return policy, handling charges, etc) and determine what I need to do. Cold side parts also depends but we do similar to smurphy with basically a tiered multiplier. One place you also might want to check is CFESA and the manufacture websites for local service companies in your area or close. I don't know about others but we do offer a decent discount to other service companies and they can do a local pickup so they wont have shipping charges. They are also going to more likely stock the parts for what kind of equipment your have in the area. We use all of the parts distributors that have been listed on this forum topic. Just be careful where you have the parts shipped. I know sometimes it can be easier to have it shipped direct to the site but then your giving them a customers address to sell direct to and then next time you will be out installing a part they ordered with no margin.
I agree with you Kamersoutdoor... We do not always mark up 100% but mostly do. While we are on the topic, how do you guys bill your labor? Hourly? trip charge? fuel charge?
Cold parts multiplier $0 to $50, X3 $50 to $100, x2.75 $100 to $200, x2.5 $200 to $300, X2 $300 to $400, X1.75 $400 and above, X1.5
If I marked up everything 100% I would be retired.
Originally Posted by iceman44 We also charge mark up 20% on consumables. I've heard of some companies doubling cost. I have a new account that paid $120 for a $60 fan motor by the previous service provider... WHOA talk about get rich quick lol!! Only $120??? Get rich quick????? How are you making any $$$ sent from my Samsung Galaxy Note
We also charge mark up 20% on consumables. I've heard of some companies doubling cost. I have a new account that paid $120 for a $60 fan motor by the previous service provider... WHOA talk about get rich quick lol!!
Smurphy- so what is your multiplier for a/c parts? Thanks.
Hotside parts I charge list price. Sometimes I add 10% if the list is close to my cost and depends on the customer, but it all pretty much evens out. Cold parts I mark up using the same multiplier as I use with a/c parts. Consumables, nuts, bolts etc. I list as miscellaneous materials on our proposals. Normally I mark up 20% for items from a hardware store.
Good question smurphy! So, what about Hobart parts? AND what about cold side parts, supply house parts, and stuff like hardware store misc supply purchases like pipe fittings or bolts/screws for a particular job and/or consumables like sand paper or grinding/cut off discs or wire brushes or ice machine cleaning brushes. Sorry, long rambling list. Just curious what everyone else does. What I do is for anything with a list that we get a discount below, I charge list and take the discount as the markup (common). Hobart we don't get pricing on obviously so we do 30% over. And anything that is bought retail I just pass the cost on. A lot of times I'm billing the time to go get stuff anyway
Originally Posted by smurphy Just wondering. Are you guys charging your customers list price for the parts? I rarely exceed list, except for a few occasions sent from my Samsung Galaxy Note
Yes we always charge list on food equipment parts. (Hobart excluded)
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