Hardware purchase and markup?

[shutterstuff]

So, none of my distributors have a lockset a customer wants in stock. Home Depot and Amazon both have it and it is about the same as I would pay my distributor for. If a customer knows what a local store sells something for, what do you do about markup?

Do you sell it near cost and just make it up in labor?

In question is a Schalge BE365 electronic deadbolt for a garage door and an F60 handleset for the front door.

[billdeserthills]

I think the safest thing is to mark it up 20-25% and just charge your regular labor, but you must meet your
cost of doing business or you won't be able to continue staying open

[GWiens2001]

As Bill says, you can't stay in business trying to match the big-box stores and their pricing. You need to have a markup to meet your expenses, and raising the labor is probably not a good idea.

A suggestion may be...

"This lock will cost you $XXX.XX, installed. That is including parts, labor, fuel cost, tax, title, license and beer money."

If they want a breakdown of the pricing, then you can give it to them. But then you tell them that it costs you time and money to go get the parts.

Just my two cents.

Gordon

[shutterstuff]

Thanks for the replies. That was where I was heading, with the 20-25% markup instead of the usual list. I just wanted some sounding off from others.

[billdeserthills]

I usually don't do a breakdown on my bills, even when charging sales tax, I'll just put part cost= total parts purchased and then I will tax that amount.

[shutterstuff]

I usually don't do a breakdown on my bills, even when charging sales tax, I'll just put part cost= total parts purchased and then I will tax that amount.

I like it. I have been very detailed on my hand written bills. I will probably scale down for residential work but will keep the details for commercial work. Most of those get invoices via Quickbooks anyway.

[billdeserthills]

I usually don't do a breakdown on my bills, even when charging sales tax, I'll just put part cost= total parts purchased and then I will tax that amount.

I like it. I have been very detailed on my hand written bills. I will probably scale down for residential work but will keep the details for commercial work. Most of those get invoices via Quickbooks anyway.

I just feel like if a client wants to use my itemized bill, to maybe find a lower price, I won't make it easy. Commercial or residential, don't like it, I'm sorry it is our policy
I will just write:Lock Service Call 60.00
Install Passage Latch--$28.50
Install Door Closer --195.00
2) Deadbolts Installed-230.00
total parts cost=$258.50 Sales Tax 24.04
Total

[jeffmoss26]

When I do cabling work it's typically a flat fee per drop which includes all parts.
Sometimes I do break it down but I don't include part numbers.

[cledry]

We like to provide a somewhat itemized bill. If I am installing a Schlage lever lock, grade 1 that is the information on the estimate and on the invoice, not the model number denoting style, finish keyway etc. The exceptions are a few commercial customers (NSPs) demand that the actual part number is on the estimate, some only want LCN closers etc. They already know what they want and what they pay (they pay what I pay near enough). I have no trouble if the customer buys their own locks and hardware, but they also understand I cannot warranty what they supply. We have set our business plan to never discount labour but if we do discount something it will be a part.