Tradesman - Price markup on parts
"Andrew" wrote in message
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On 04/10/2020 15:01, tim... wrote:
"Andrew" wrote in message
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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.
However perverse it sounds, charging VAT on top of a vat-able price for
products bought retail is the correct thing to do
useless he wants to risk getting caught at a VAT audit he will be passing
this VAT on, not pocketing it
He isn't VAT registered !.
so he's committed a fraud by adding 20% VAT onto his invoice
simples
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