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Fredxx[_3_] Fredxx[_3_] is offline
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Default Tradesman - Price markup on parts

On 03/10/2020 22:28:47, RJH wrote:
On 3 Oct 2020 at 20:15:49 BST, "Andrew"
wrote:

On 02/10/2020 21:24, John Rumm wrote:
On 02/10/2020 19:38, GB wrote:
On 02/10/2020 19:23, Chris B wrote:
I have just received an estimate from a tradesman (based on
photographs to save him the time of a visit) which includes £199
Plus VAT for listed parts.


The very same parts are available from suppliers listed on amazon
(not amazon itself) for £96.98 Including VAT and delivery.


I know that part of the tradesman's profit comes from the Sale of
parts but I always thought that they bought parts from suppliers at
trade prices and then billed for them at retail prices.

Is a markup on parts of well over 100% typical in the building
industry or is this a simple indication that he doesn't want the job?


So far I only have one estimate, as I don't like wasting 3 peoples
time for jobs of less than half a day, when only one is going to get
the job.

I am wondering if its worth getting any more or is this typical.



As a professional, I charged for my time. If I bought in services for
clients, I passed them on at cost.

Which if you literally do that (i.e. sell at your buy price), means you
lose money on every part sold - since procurement takes your time, and
bites into your cash flow, warranty replacements then just increase that
loss.

However, I got a quote from a gas fitter recently who charged a fairly
high rate for his time AND wanted to sell me a lot of parts with a
100% mark-up. This made his hourly rate of charge really high!

100% might be taking the pee, although it depends on the market and the
product.



100% is pretty well par for the course in the garage trade. My
ex-MOT-tester neighbour still does it for all the private work
he still does. And he charges VAT on the bull**** 'retail' price
and then pockets the extra 20% on the markup.


Might that explain why any garage I've had dealings with won't fit parts I'd
supply?


Some garages will, but then qualify the fitting where if the item fails
they are not responsible.

I specifically known a local garage fit the owner's supplied discs and
pads without issue.