[CAUT] Parts Mark up

[McNeilTom at aol.com]

Dear Steve, and Colleagues -
 
Staff technicians, whether full-time or part-time employees, should  consider 
it part of their responsibility to obtain parts and materials for the  
employing institution at the lowest cost to the institution.  Then the  institution 
purchases the parts directly from the supplier, and the tech is then  serving 
as (or assisting) the institution's purchasing agent.  And that's  the 
cleanest way to do things.
 
If the tech is working as a vendor to the institution, he is selling  both 
his time/expertise and the parts and materials.  He should  'mark-up' the 
supplies as is the usual practice in his or her business.   Remember that supplying 
parts is one of several 'profit centers' in the  business.  (When you get your 
car serviced, you usually pay a mark-up on  the oil filter, part of the 
garage's profit.  If the garage sells the parts  to you at their cost - which a 
very few very small shops still do - it has  to increase the labor charge 
accordingly to achieve its profit target.)   My preference is to be uniform in my 
mark-up practices, same mark-up for  all clients.  Too hard for me to keep track 
of various levels of preferred  customers.  And besides, almost all of my 
clients would rate as 'preferred'  in one way or another!
 
An ethical dilemma, or conflict of interest, occurs only when the tech is  an 
employee and a vendor.  Most government  institutions (e.g., state 
universities) and larger private institutions have  regulations prohibiting or limiting 
this duality.  In such cases the tech  should engage in supplying such parts 
only under a separate contract or purchase  order within the applicable rules 
of the institution.  If in doubt about  this, seek guidance from the purchasing 
department.
 
~ Tom McNeil  ~
Vermont Piano Restorations
VermontPiano.com

346 Camp  Street
Barre, VT 05641
(802) 476-7072  

 
In a message dated 6/11/2008 12:11:06 P.M. Eastern Daylight Time,  
shsnyder1 at verizon.net writes:

Dear  Fellow CAUT"S


I was wondering what  you do regarding   parts mark up
for the institutions you work for.  This has  always
been a fuzzy area for me.   I'm not sure if we  can
discuss this or not, but any input would be
appreciated.  Just  want to be sure I'm doing the
equitable and ethical  thing.

Regards,
steve








**************Vote for your city's best dining and nightlife. City's Best 
2008.      (http://citysbest.aol.com?ncid=aolacg00050000000102)
-------------- next part --------------
An HTML attachment was scrubbed...
URL: https://www.moypiano.com/ptg/caut.php/attachments/20080611/7b2bae3f/attachment.html