Posted by NCWayne on June 17, 2010 at 14:04:32 from (166.82.79.195):
In Reply to: Re: Nancy's Oil Change posted by Nancy Howell on June 17, 2010 at 10:41:19:
Hey Nancy, don"t ever apologize or feel sorry for being frustrated over the cost of things nowdays. I get trade magazines and 90% of the time the articles are geared toward OEM"s being able to mfg parts at a cheaper cost than ever before by using new technoligies. The problem is that these parts savings rarely get passed onto the customer. In fact often times these new technologies make every part OEM specific which means that even though the part is being made cheaper, since it is available nowhere else, the OEM can now charge whatever they want for the part because it is "special" and make even more money. Personally when I mark up parts it"s usually in the neighborhood of 10% to 15% or less, depending on the part cost, whether it"s a cash item or put on an account, etc. That pretty much ofsets the cost of any paperwork involved plus the cost of keeping the money tied up until a job is done, and it makes me a little bit of profit to boot. When you start marking up in excess of 25% then things are getting a bit crooked in my opinion. Want one even better on the markup scale? Dad and I did a machining job for an equipment dealership some years back. He handed the guy the bill and was standing there talking to someone else when he happened to turn and watch the first guy put our labor cost down on the invoice to their customer. The markup they put on our labor was 100%. Basically they made more than $1500, over and above what they charged for their own labor on the job, and never lifted a finger for it beyond maybe 5 minutes of paperwork. Dad said if I could have taken the bill back and charged the dealership more it would have served them right but then again he knew it would get passed on to the customer. That is one of the reasons he left the dealerships and went into business for himself back in "86 because he got tired of watching the customers get cheated. In that case alot of it was the customers getting charged by the flat rate book. Basically the company was consistantly getting paid say 10 hours for a job that only took 5 and the guys busting their butts doing the work never got anything out of the deal but being asked to do more, faster so the company could turn even bigger profits and the fat cats could get fatter.......
Like I said the other day in todays world if you do good work and are both fair and honest you"ll probably never get rich.....
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