Tanner-'op wrote:
Dave Plowman (News) wrote:
In article 483f0c75@qaanaaq,
Andy Hall wrote:
All of which can be avoided if the tradesman supplies and fits......
Then everybody knows exactly where they are and there is no argument.
You certainly don't know 'where you are' since he could be marking up
the parts over the cost to him. If you pay direct for the suite at
least you'll know what he's charging for labour.

Dave,

If you run the business 'properly' then 'supply and fix' is the norm. If
you go for a meal in a restaurant, do you take your own, uncooked food in
and then ask the chef to cook it based on his hourly rate? If you did, it
would be you in the cooking pot!

And think of the profit aftermarket car component suppliers are making on
*every* part!

Lesson begineth:

In business, the 'tradesman' negotiates a cut-price rate with his suppliers
of around 10 - 40%, they will also arrange an extra discount for a prompt
settlement of the suppliers monthly invoice to the tradesman of around 5 -
10% but the tradesman will then pass supply the materials to the customer
at the 'full'price and possibly even adding a further 10 - 20% for
overheads.

Now, if the tradesman wants to look good in the customers eyes (or just to
get the job), he now has enough leeway to offer a 'discount' to the customer
and still make a profit - without having to cut his labour charge - and
that's how the system works and it certainly did in my last job.

Lesson endeth - patronising though it may sound.

By the way, going back to my analogy of your meal - if you have a meal in a
pub, the *profit* margin there is at least 60% on *every* meal and the same
goes for the top-notch restaurants!

Tanner-'op



This approach cannot be universal - for some things it makes sense, for
others not.

If I want a painting on my wall, I am not going to get a workman to
supply and fit. I might get a person to fit it (i.e. hang it on the
wall) and he might supply a hook and a wall plug. Indeed, it would be
unusual for the customer to supply the hook unless it was some unusual
fitting.

The first time I dealt with a serious building job, the contract
specified what mark up the builder could apply. (It was based on a
standard form of contract from RICS or some similar organisation.) And I
was happy for that to be applied. The approach of getting a cut-price
from your supplier, charge a full-price plus extra markup to the
customer would not be appreciated by me. (I accept that you would get a
reasonable prompt payment discount.) Especially now that it is so easy
for customers to see what the amrket prices are for many goods.

It is (maybe 'was' these days?) traditional in some fishing locations
for the kitchen to cook the fish caught by the punters. So 'fit only'
*can* apply even in catering.

--
Rod

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