Price guarantee?

[Martin]

A subject that has been touched on a few times here and one that is so everyday a subject that crops up in our daily business lives.

More and more of our customers use the Internet to search for information and ultimately help in fixing their appliances. Often as not they have found via the Internet search facilities, that the problem with their machine (say?, is for example) the module?

Now, assuming they have diagnosed the problem correctly enough and priced up the cost of the part. They then contact you to fully diagnose the problem and quote for the job?

You call and confirm that indeed the fault is the module and divulge the cost of the part, your labour charge (and VAT if applicable?).

How much mark-up does one place on a module? (for example in this case). Bearing in mind they have already established the module cost to them, from the manufacturers, delivered, all in, is £100! That same module purchased at trade price is not far short of that (perhaps about £85 to £90?).

You commit yourself to a 12 month warranty (if you belong to a Trade Association or Trading Standards COP that is. :wink:). So that part has to not only work and solve the problem but to live on for at least twelve months thereafter to absolve yourself from blame or come-back!

So, your purchase price has surely got to be ramped up to a sustainable level in order to cover any unforeseen eventualities otherwise if the shoosh hits the fan on this job, you’re gonna be out of pocket!

This brings me to my point here…….And that those smart ar££es that suss out the price of spares, never include the insured value of that commodity. That furthermore if they themselves go out and buy a Module, then that part carries no guarantee whatsoever from their supplier. Break open the seal on the packaging and the warranty has gone! Therefore to expect and demand that the very same part you supply and fit should carry a 12 month (or whatever?) guarantee, should at least come at a price?

Given the example then on a £100 module (retail), what percentage of the purchase cost should be added to include an unconditional replacement guarantee? Insurance companies always relate their mark-up to the ‘risk factor’ and price accordingly. But then insurance companies never divulge their costs either!

What’s your mark-up? 😉

[petalpop]

Re: Price guarantee?

i normally put the vat on twice
so my mark up is 17.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}

[pup]

Re: Price guarantee?

i try put 30{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} mark up

[cornwell40]

Re: Price guarantee?

Same as PUP. 30{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}

TC

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