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  1. #14
    Join Date
    Feb 2007
    Location
    Fremont, Indiana
    Posts
    1,560
    Quote Originally Posted by smurphy View Post
    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
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    A Einstein

  2. #15
    Join Date
    Dec 2012
    Location
    Illinois
    Posts
    319
    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

  3. #16
    Join Date
    Mar 2002
    Location
    fort walton beach fl.
    Posts
    790
    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.
    http://acfwb.com/

    "The best preparation for good work tomorrow is to do good work today"

  4. #17
    Join Date
    Dec 2012
    Location
    Illinois
    Posts
    319
    Smurphy- so what is your multiplier for a/c parts?

    Thanks.

  5. #18
    Join Date
    Jan 2013
    Posts
    6
    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!!

  6. #19
    Join Date
    Feb 2007
    Location
    Fremont, Indiana
    Posts
    1,560
    Quote Originally Posted by iceman44 View Post
    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
    Member of the "Work Exchange Program"
    "Will work for knowledge"

    "Everyone is a genius. But if you judge a fish on its ability to climb a tree, it will live its whole life believing that it is stupid"
    A Einstein

  7. #20
    Join Date
    Jan 2013
    Posts
    6
    If I marked up everything 100% I would be retired.

  8. #21
    Join Date
    Mar 2002
    Location
    fort walton beach fl.
    Posts
    790
    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
    http://acfwb.com/

    "The best preparation for good work tomorrow is to do good work today"

  9. #22
    Join Date
    Jun 2003
    Location
    Gainesville
    Posts
    14
    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?

  10. #23
    Join Date
    Jun 2011
    Location
    Decatur, IL
    Posts
    56
    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.

  11. #24
    Join Date
    Jun 2011
    Location
    Decatur, IL
    Posts
    56
    Also remember a lot of these parts distributors hate each other so work them against each other as much as possible.

  12. #25
    Join Date
    Dec 2008
    Location
    In the country in NE Kansas
    Posts
    75
    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.

  13. #26
    Join Date
    Aug 2013
    Location
    Florida
    Posts
    159
    Quote Originally Posted by iceman44 View Post
    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.

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