[CAUT] Parts Mark up

[Porritt, David]

As an employee our first responsibility is to the people who sign our
checks.  I've set up accounts with the suppliers in the school's name so
they can buy direct.  I have a school credit card that I use for these
purchases.  This keeps me and my personal cash flow out of the mix and I
have no ethical decisions to worry about.  When I was a
contractor/vendor it was different.

 

dave

 

David M. Porritt, RPT

dporritt at smu.edu

 

From: caut-bounces at ptg.org [mailto:caut-bounces at ptg.org] On Behalf Of
McNeilTom at aol.com
Sent: Wednesday, June 11, 2008 12:15 PM
To: caut at ptg.org
Subject: Re: [CAUT] Parts Mark up

 

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
	
	





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