Marking up merchandise

John Ross jrpiano@win.eastlink.ca
Mon, 14 Nov 2005 17:47:03 -0400


I think we have to determine, if the mark-up, is based on the selling 
price, or the product price.
50% of the selling price, is the same as 100%, of the buying price.
Or am I wrong?
John M. Ross
Windsor, Nova Scotia, Canada
jrpiano@win.eastlink.ca
----- Original Message ----- 
From: "Alan Barnard" <tune4u@earthlink.net>
To: "Pianotech" <pianotech@ptg.org>
Sent: Monday, November 14, 2005 5:02 PM
Subject: RE: Marking up merchandise


> Man, that seems low to me. My markups are more in the 80 to 100 
> percent
> range & shipping on larger items.
>
> Let's hear from others ...
>
> Alan Barnard
> Salem, Missouri
>
>
>> [Original Message]
>> From: Wayne Walker <wayne.w@musicstop.com>
>> To: John Dorr <a440@bresnan.net>; <pianotech@ptg.org>
>> Date: 11/14/2005 1:29:53 PM
>> Subject: RE: Marking up merchandise
>>
>>
>>
>> -----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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>
>
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