Marking up merchandise

[Wayne Walker]

-----Original Message-----
From: John Dorr [mailto:a440@bresnan.net]
Sent: Sunday, November 13, 2005 12:55 PM
To: pianotech@ptg.org
Subject: Marking up merchandise

Hi John,
I noticed nobody has reply to your request. I usually use 30-50% mark up on
most items. You should inquire to see what other tuners in your area are
charging for items  like Dampp-Chaser system and base your price on that.
The smaller items like punchings, key button etc., I bill out as shop
supplies. These are not in our inventory as such but charged against the
acoustic piano service department. Items like glue and lubes also go as shop
supplies.
New set hammers cost 250 plus mark up and labour is the norm. You need to
make money on the parts and don't forget shipping cost on these items.


Wayne Walker
Piano Tuner & Technician
MUSICSTOP LTD
1005 Dow Rd, New Minas, NS
B4N 3R4
Cell 902-221-1540
Fax 902-681-1463
wayne.w@musicstop.com <mailto:wayne.w@musicstop.com>
www.musicstop.com <http://www.musicstop.com>

Hello all,

I've been an idle newbie watching this list.  I'm a PTG associate member and
have been growing my business for about 5 years now.  This is my first
question to the list.  If you think it's inappropriate, please don't flame
me!
 I just thought I might get a great variety of opinions from which to
choose.

What is an appropriate mark-up on the "Merchandise" part of what we sell?
If
WE buy a set of hammers for, say, $250, do we charge $500 for just the
hammers
and add labor to that?  Or, give the hammers at cost and be happy to make
the
labor price to install them?

Are smaller goods that might be thought of as "supplies" (like key buttons,
felt punchings, etc) treated differently?  Maybe just include a "Supplies"
charge on repairs, like automotive shops do?

What's a typical Gross Profit Margin?  I'm in retail also, working part-time
for a music store, and retail GPMs have eroded considerably over the years,
thanks to mail-order, discount music stores, and the internet.  It used to
be
typical back in the "good ole days" to make a 50% GPM (buy for $1, sell for
$2), but now you're usually deliriously happy with 30-40% on big ticket
items
(because NOBODY pays list price) and try to make it up on accessories
(drumsticks, guitar picks, et al) that are not "shopped" for low price.

Help me find my way.  I'm marking up a Damp-Chaser, for example, to approx.
35% GPM.  Maybe that's all my market area will take, maybe I should be
getting
50%, and maybe I'm being greedy.  I'd like to know some others thoughts.
And
I really don't think we're violating any anti-trust laws by discussing it.

If you'd rather just email me privately to keep your thoughts less public,
my
address should be listed here, but if it's not, mail to a440@bresnan.net

If the subject is taboo, tell me nicely and I'll slink slowly back into the
shadows.


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