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I>’ LIke to know how other builders handle markup on large ticket items(kitchen cabinets and/or appliances). For example, if while shopping with your customers, your sales person shares list price information with your clients(whom never ask), then your sales person mentions package pricing(appliances, for example), and later gets back to you with a package price that is 20%-30% less than when priced individually, but your markup is 35%-40%. What kind of a package deal is 10%-15% over individual pricing? I know that I have time invested in shopping with my clients, and I know that my yearly overhead expenses are a fixed % of my total sales. Truly, if I markup just to cover my overhead, I’ll exceed the individual pricing. What kind of business deal is this for me? If I resort to having my clients purchase their own large ticket items, I lose complete control over this area of the project. How do you guys handle this scenario?
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Greg, check into the Proof Management System. All overhead is
place on labor, thereby allowing you to mark up all subs and
materials, including big ticket items, 15%, for a net profit of about
13%.
*You're right Sonny. I have always been annoyed with the client being able to walk in anywhere and get close to the same price I pay for an item. Essnetially you must have a total percentage that covers overhead. You can put it in labor or material or seperate under insurances. I have always adjusted my pricing strategy to the prospect. If the client has been shopping material I give them the price they know then increase labor on the item or add for insurance coverage which is easily justified at 35% comp & liability.
*10% to 20%........no less.......no matter how much the ticket is.Ed. Williams
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I>' LIke to know how other builders handle markup on large ticket items(kitchen cabinets and/or appliances). For example, if while shopping with your customers, your sales person shares list price information with your clients(whom never ask), then your sales person mentions package pricing(appliances, for example), and later gets back to you with a package price that is 20%-30% less than when priced individually, but your markup is 35%-40%. What kind of a package deal is 10%-15% over individual pricing? I know that I have time invested in shopping with my clients, and I know that my yearly overhead expenses are a fixed % of my total sales. Truly, if I markup just to cover my overhead, I'll exceed the individual pricing. What kind of business deal is this for me? If I resort to having my clients purchase their own large ticket items, I lose complete control over this area of the project. How do you guys handle this scenario?