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Should I show my customers my costs to prove my value?

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  • 17-01-2012 1:38pm
    #1
    ronan45
    Registered Users Posts: 1,584 ✭✭✭


    Hi there. I do some small time repair work and the company that sells the parts have really jacked up the prices. I cant get the parts anywhere else so im over a barrell. My customers have questioned the prices (in fairness the parts are pricey). I only do a markup of between 15-20% now on the parts
    I used to put 40% mark up on the parts before this crazy price jack by my supplier.
    So basically I only make money on the labour side really because the parts are too pricey , if i put them up anymore the customers will walk.
    Should I show them my invoices for the parts from the manufacturer to prove Im not ripping them off. I have told them I make very little on the jobs but they still seem reluctant to beleive. Or should i tell them Im only marking them up by x amount and they can try get it cheaper else where. (which i know is virtually impossible)


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    #2
    cloptrop
    Closed Accounts Posts: 2,923 ✭✭✭cloptrop


    ronan45 wrote: »
    Hi there. I do some small time repair work and the company that sells the parts have really jacked up the prices. I cant get the parts anywhere else so im over a barrell. My customers have questioned the prices (in fairness the parts are pricey). I only do a markup of between 15-20% now on the parts
    I used to put 40% mark up on the parts before this crazy price jack by my supplier.
    So basically I only make money on the labour side really because the parts are too pricey , if i put them up anymore the customers will walk.
    Should I show them my invoices for the parts from the manufacturer to prove Im not ripping them off. I have told them I make very little on the jobs but they still seem reluctant to beleive. Or should i tell them Im only marking them up by x amount and they can try get it cheaper else where. (which i know is virtually impossible)
    if you are that cheap they cant walk because nobody else couldget the part cheaper so yourovrall price is still better than the competition . dont show invoices no matter what u make off something they wont be happy


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    #3
    Nuttzz
    Registered Users Posts: 3,777 ✭✭✭Nuttzz


    How about you say to the customer(s) that here are the parts you need, my price for them is €x if you can get them cheaper and delivered to your place then I will fix them for €Y

    I have a friend who is plumber and is always told "I saw it on a UK website for £x" to which he gives them the above answer, 5% supply their own, most couldnt be bothered with the hassle or the Uk company wont ship them


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    #4
    The Apprentice
    Registered Users Posts: 1,130 ✭✭✭The Apprentice


    Ya i would personally break it down, it might retain some of those angry terrorist customers that will persist with "sure thats a rip off attitude" ..

    Keep it basic and simple.. i dont think you,ll go too far wrong. If competitors see where your purchasing your parts just be sure that your sourcing the cheapest in case they might get the upper hand will similar tactics.


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    #5
    JD Dublin
    Registered Users Posts: 398 ✭✭JD Dublin


    Why dont you charge the 'retail' price to the customer? That way you are covered. I dont know what you do for a living so there may be no 'retail' price. Maybe there is a retail market for the goods in the UK? If so then you can use those retail prices when charging your customer.

    Then all you have to do is get your labour. By the way, do customers have any objection to your labour charges? Is there any way you can charge for the trip to the hardware shop as part of your labour, if you have to buy the parts locally???


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    #6
    Andrew33
    Closed Accounts Posts: 1,857 ✭✭✭Andrew33


    No!!! if they're thinking that way (rip off culture), no amount of invoices will convince them anyway. In fact, they'll probably start questioning your % margin and start haggling with you on that. If the quality of your work is spot on the vast majority of people will be happy, if you do a shoddy job? People will remember that and not how cheap you were. Sometimes people are suspicious if you seem too cheap.


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    #7
    ronan45
    Registered Users Posts: 1,584 ✭✭✭ronan45


    Andrew33 wrote: »
    No!!! if they're thinking that way (rip off culture), no amount of invoices will convince them anyway. In fact, they'll probably start questioning your % margin and start haggling with you on that. If the quality of your work is spot on the vast majority of people will be happy, if you do a shoddy job? People will remember that and not how cheap you were. Sometimes people are suspicious if you seem too cheap.

    Ok thanks for the feedback peeps. Yeah Ill go with this advice As most of you say I wont show invoices, didnt the last guy i showed an invoice contact supplier direct thinking he could by pass me ! Lesson learned thanks for all your advice.

    Ill just say next time ..........."

    "thats the best price i can possibly do for you . if you want to try get the part yourself i can certainly fit them but i dont think you will find cheaper mate"


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