sundance-communications.com Forums General General Telephone & Systems Information Mark Up of Equipment

What is a reasonable amount to mark up telcom equipment?

Racks, patch panels etc.

Thanks,

This really should not be posted as many endusers visit this board.......

It has possibilities of hurting our income even more.......

I think Mitch is right---but we CAN talk theory. Everyone knows that if you buy something and sell it---you either make money or lose money. If you sell the item at the same price that you bought it for--you lose money because you have time invested (purchasing, bookwork, on the phone, research, handling etc, etc.) and you have shipping costs to you, and shipping costs to your customer (you have to take it out there).You also have to consider "Warranty". What happens if the piece of equipment goes bad after 1 week or so. You have to go out there, pick it up, replace the thing, then send the other piece back or have it repaired--or repair it yourself--and have it in your inventory. Money, money, time, time.
When a customer thinks he can get a piece of equipment for less than I am offering---I GLADLY let him go for it. It saves me money to NOT sell it to him. Now I'm talking about stuff that anyone can get--on the web, or in retail stores. I can't compete with Radio Shack, Best Buy, Sam's etc on PRICE. I can't compete with E-Bay most of the time --on PRICE. But I don't care to. I use those prices as guides to where MY price should be. I don't want to gouge anyone---but I will NOT sell something and not get paid for what I have invested in the piece of equipment. What I try to get paid for mainly, is my expertise, and the information I bring to the situation. I solve problems. If the problem is a "no cable, no jack" situation--it costs the customer a flat rate for me to solve that problem. I don't get into charging for cable, jack plates, inserts, screws, scotch locks etc.
So--what's the mark-up??? I know some people who charge 3.0 (3 times their cost) and I know people who charge 1.1 (10% added to their cost)---I'll bet they both end up to be the same or close to the same on TOTAL price when labor is injected into the equation.
To sum up: I knew an old telephone guy who would work backwords. He would look at a job, and decide that he wanted X dollars in his pocket at the end of the job. He would then figure out all of his costs--material, labor (on everything) and add the X dollars ---and THAT would be his price to the customer. He would not budge a dollar!! IF he had mis-judged the jobm a bit, he would tell the customer and most of the time, would be compensated for the extra time or material needed. He died a happy and successful man. Good Luck.

Excellent subject for the Business Owners Forum??

There is also a variance between a overhaed markup of a full-sized company that has so many more costs than a single owner than uses his house or leases a small office and doesn't have a fleet of vehicles and 6-12 technicians and supporting staff.
And I'm sure that most of the cost in NYC/LA are different than Cleveland or Akron Ohio. Some of the larger dealers actually have contracts with suppliers getting a larger discount on the Racks, Patch Panels, etc., so do they mark it up on a list or discounted price? There are many ways and many more factors to the madness. Quailty also is a varing issue on product, a Ortronics versus a panduit patch panel?
All for now...and YES this should be in the Owners forum.


[This message has been edited by Toshiba Bob (edited April 30, 2005).]

Topic moved to Installers forum.

Mark Up of Equipment