Steve Firth wrote:
ARWadsworth wrote:

So if anyone wants a pullswitch fitting give me a call and I'll fit
it for £400 anywhere in the country:-)

I hope you took careful note of the explanation offered by a plumbing
firm to the new plumber on the block.

On the lines of:

If you've got the part in the van tell the customer you have to get it
from a supplier. Take an hour to go and get it, charge the customer
for the time.

Thats plain dishonest. If I have the part on the van I supply it & mark it
up. If I have to go & get it there are 2 scenarios. If its a part a
handyman could be expected to carry, I don't charge for the time getting it,
but I will still mark it up. If its a part I couldn't be expected to carry,
I charge for the time & mark it up.

For example, I don't carry multiquik WC connectors as there are about 6
variations. If I were a plumber I would carry one of each.


When you get the part go to a nearby supplier and get
the cheapest part, get a receipt but tell the customer that you only
deal trade account and can't show them a receipt.

Why should you show the customer the receipt? Would a garage show you the
receipt for the parts they fitted during a service? Would Tesco show you
their receipt for the loaf of bread you bought?

I itemise parts & labour on the bill, but the receipt is mine.

The only exception to that is if its an expensive item & the customer is VAT
registered (I'm not). In that case I ask for cash from them, get the item &
give them the change & the VAT receipt.

When you charge the
customer mark the part up according to how wealthy they look, about
40%[1].

[1] Actually based on usual markups this seemed a bit low, most
tradesmen mark up by 50%[2] (i.e. charge the customer twice what they
paid for the part.)

[2] This is under the "daylight robbery" technique for marking up
prices where the percentage is caculated as markup/(markup+price
paid) if it were done properly (markup/price paid) it would be 100%.

Small traders especially need to mark up parts. All business's do.

My general policy is to buy online & sell at Homebase price - 10%. That
gives me a very good margin because the Homebase et al mark up is far higher
than any small trader - 400 - 800% in some cases.

For example - 300mm flexible tap connector (compression) - I can buy for £1,
Homebase sell them at £8.99 - and they must pay much less than £1.


--
Dave - The Medway Handyman
www.medwayhandyman.co.uk