We are a new business and would like input on the going rate (mark up) for parts sold to customers. Not just copiers but printers as well. Any input would be greatly appreciated. We are not a big company. We work with medium to small companies.
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Re: Parts Markup ????
Good rule of thumb that I use is 33% and adjust accordingly. Good luck! -
Re: Parts Markup ????
My company is more than 50%, but most of our customers have contracts, and its very few who are time and materials.Comment
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Re: Parts Markup ????
last 3 companies I have worked for 50% is the going rate -at least for most of the parts, supplies might be marked up less and nothing less than $20 minimum for parts no matter how small, inexpensive or insignificant if it is what will get a machine going (plus labor of course)jesus loves you! (everyone else thinks you're an assh*le)
street cred: CompTIA A+ & Network+ Certified; Konica Minolta Gold Seal x2,
Konica Minolta Outward ASSociate, Ricoh, Sharp, Lexmark trainedComment
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Re: Parts Markup ????
I cant believe we are discussing this in open forums.
I wont discuss my prices where end users can see.Comment
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If you'd like a serious answer to your request:
1) demonstrate that you've read the manual
2) demonstrate that you made some attempt to fix it.
3) if you're going to ask about jams include the jam code.
4) if you're going to ask about an error code include the error code.
5) You are the person onsite. Only you can make observations.
blackcat: Master Of The Obvious =^..^=Comment
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Re: Parts Markup ????
I ask my buyer how much she paid for it and make up my own mark up based on how much I like the customer. After reading the thread about how much you guys charge for a service call, my hourly rate is much lower than most of you, and if I have a higher mark up on parts, I still come in lower than most for an overall service.The greatest enemy of knowledge isn't ignorance, it is the illusion of knowledge. Stephen HawkingComment
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Color is not 4 times harder... it's 65,000 times harder.
They call it "TECH MODE" for a reason. I have manual's and firmware for ya, course... you are going to have to earn it.Comment
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Re: Parts Markup ????
I'm not putting private info up but there's some guidelines you can follow:
1. Little dinky things that are a few bucks have higher mark-up tolerances.
2. Very expensive parts (hundreds or thousands of dollars) tend to have lower percentage markups but higher dollar value profits.
3. DON'T, I repeat DO NOT try to be the lowest priced guy. Overall, and I know it's hard to grasp at first, but overall, PRICE ranks way down there on the importance list to customers. It took me a long time to get this in my head but it's true. Actually if you strive for the lowest price, you'll be a commodity and attract penny pinching losers...and here's the big surprise...99% of the potential customers out there won't even know that you're the lowest price unless you spends thousands and thousands advertising yourself as so. Not worth it.
4. This is what I do when faced with a customer statement that so and so company is cheaper. I ask for the quote in writing, find the equivalent product or identical product and if doable quote them a price of one PENNY less than their other quote. Psychologically this is disturbing to customers because they were really hoping to price gouge the hell out of you and save tons of money. Practically this is AMAZING for you because they can no longer use PRICE as a reason not to buy from you because you are now the cheapest option. You should focus on other facts anyway on why they should buy from you.
5. Keep pricing relatively simple, it's easier for you and saves labor. It's also less confusing to customers.
6. I find that getting rid of stupid discounts such as for non-profits, churches, schools, and governments is best. Try to go with one FAIR price for everybody. Focus on having price discounts based on volume instead of based on who is buying. I know this is another hard thing for people to grasp, but the truth is, if church A, or nonprofit mission this is a worthwhile entity then they will get the funds to stay in operation. If they can't afford daily operational expenses then they need to grow first and work harder at getting more investors, donators, or supporters.
7. If you're going to have varying pricing schemes, I recommend charging more for Joe Schmoe who buys the part from you and that's it, and charge less for the person buying the part from you but having you fix/install it.
8. PROFIT is a wonderful thing...it makes the world go round and pays for EVERYTHING. I charge more to make sure I get a cut as an owner and I make sure I can make enough to pay for my student loans which is almost as much as my mortgage. In short, if you employ (including owners) people with more advanced training, certifications, college, and more experience, you should charge more...one, you have to and two the customer is getting a better deal and higher quality.
9. As you go along, if you find you're charging less than brick and mortar competitors, online competitors, then raise the price...accordingly, if market prices are lower than what you're charging make an adjustment if no one is buying it.
10. If you're the only guy around you can charge more. If you're a dealer and you can't get the part online, you can charge more.
11. After you've done all of this you should be in good shape. Also, don't be afraid to "fire" a customer or walk away from a deal. I'd generally rather sell less at a higher mark-up and have less hassle then sell a lot at a lower markup.
12. HAVE FUN! Remember why you got into this business. Hopefully you enjoy it and wanted to make an honest living at doing it!Comment
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Re: Parts Markup ????
good post....you put a lot of thought into it.....thanksComment
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Re: Parts Markup ????
We use the Suppliers RRP usually its about 40-50% on Cost priceComment
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