making money on materials??

[cagedanimal2010]

i work for a bloke at the moment, when ever he gets a quote for materials from the wholesalers he would add 15/20% on to the job quote price, is this normal practice?

 

[Phil]

yep. i personally would get the best price on materials and charge them out accordingly. don`t forget if it stops working within the 12 months it`s you running back to the wholesalers to replace it. my diesel runs around picking bits up and my time is taken etc. so i don`t have an issue with a mark up.

 

[cagedanimal2010]

that makes sense, just the few people i work for always want to see a copy of material prices, is there anyways around this? am i legally obliged to do so?

 

[Phil]

yeh mate tell them to pick the materials up and then you are not responsible for any of the running around and laying the money out. either that or charge for your time on top of the job for the time taken running around to get it mate. nothing is free and certainly not fuel at the prices it is now.

 

[kw1980]

that makes sense, just the few people i work for always want to see a copy of material prices, is there anyways around this? am i legally obliged to do so?

The wholesalers i use will give me a copy of a quote with whatever price i want on it. Its a national company with three letters in the name in case you were wondering who.

 

[cagedanimal2010]

cheers boys!!

 

[BluSparx]

I always add mark up to my stock - otherwise how are you going to make a profit and let's face it we wouldn't be in the game if we didn't want to earn money.

We could all just sit on our backsides and sign on but we all go out to earn a living. You wouldn't hear tesco saying should we add markup on our stock or sell it for cost price would you?

Saying that most of my customers are domestic but the odd landlord who asks me to see an invoice I just tell him that if he doesn't want to pay my price to purchase the materials upfront and just pay me the labour but then MY product liability won't cover any faults that develop as I didn't supply materials ----- that normally keeps them quiet.

 

[DiscoDave]

just had a simliar conversation with a customer, - can i have the tickets so i can claim the vat back? no you can't! i need them to balance my books!

i put 10pc on my stuff, every little helps and who can honestly say they've never forgotten to price for something in a job?

 

[martysparky]

even if you don't forget there is always something that comes up that'll cost you.

contingency funding is needed before or after but preferably before.

They can see the receipts if they like after the job as then they have signed the contract that states all with reasons and they can keep them if they pay upfront for materials.
I don't like to give credit thats what destroys business'.

you can include, order picking, courier and design fees along with time on tools to your invoice.
I think people look up prices and feel ripped off if your not upfront.

but then again they do all ways so horses for courses.

Thats my take.

 

[Markc]

You are no more obliged to show a customer your "cost" price than Tesco's are for you weekly shop. You are, if asked for by a customer, obliged to show a breakdown of costs for materials and labour but at your rates. If the customer wants to know the price of a individual item then it is up to them to source a supplier and ask for a price directly. I doesn't matter if this is more or less than your cost even if it has been supplied via the same merchant.

I don't know of any company that will sell items at cost price. The 15 or 20% mark up is not out of the way and on some items it can be a lot more. I know of different and industries where hundreds of % is very normal.