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John Rumm John Rumm is offline
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Default Tradesman - Price markup on parts

On 03/10/2020 19:34, DJC wrote:
On 03/10/2020 14:40, John Rumm wrote:
On 03/10/2020 12:17, GB wrote:
On 02/10/2020 22:24, williamwright 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.

I always marked parts up 30% to allow for stocking, warranties, etc.

Bill

Is that 30% above trade price, or 30% above retail? Anyway, 100% on
top of retails seems like **** taking.


Not if you are buying at retail price yourself and then selling on.

Many small businesses find that their "trade" prices are often only
very slightly below retail (if it at all), and in some cases they can
be higher!

So if a customer wants you to supply both materials and service, they
will have to be prepared to pay the higher prices on the materials.



The difference between 'trade' and 'retail' is very vague these days. A
small tradesman is probably not getting a significantly better deal than
anyone else prepared to shop around.


Indeed - and lots of it comes down to buying power, if I need something
in 1s and 2s now and then, I am unlikely to get the same pricing as an
online discounter buying in the 1000s. Which often means I can get a
product into a customer hands cheaper buying from ebuyer than I can
going to one of the big disties like Ingram, especially when you factor
in delivery costs etc.




--
Cheers,

John.

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