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Thread: going rate

  1. #21
    Join Date
    Sep 2002
    Location
    Clark County, NV
    Posts
    2,696

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    I do much smaller jobs than you do. Doubling a $30 material bill for me going to get it is different. No charges are hidden.

  2. #22
    Join Date
    Oct 2005
    Location
    Bulverde, Tx
    Posts
    1,244

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    True. Small stuff is a bit different.
    Don


    '06 Trailblazer 302
    '06 12RC feeder
    Super S-32P feeder

    HH210 & DP3035 spool gun
    Esab Multimaster 260
    Esab Heliarc 252 AC/DC

  3. #23
    Join Date
    Mar 2006
    Location
    Ocean City, Maryland
    Posts
    951

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    [DDA42] I too do smaller jobs than you. So you charge the customer what you pay for material? I dont jack up anything. Its called wholesale and retail. There are no surprises. I charge what I bid. None of my customers can buy material for what I pay for it. Same with truck parts. I buy a Caterpiller ECM[computer] for $900.00 and resale for $1200.00. If I buy a sheet of 10GA for $105.00 I'll resale [include in bid] for $142.00. 40% mark up. You have to get paid for your time and that includes calling the orders in or picking up material. If you don't make some money off material [or parts] its lost profit. I'm sure the local welder supllier doesn't sell you a welder for what he pays. I don't condon gouging anybody.
    Scott
    HMW [Heavy Metal welding]

  4. #24
    Join Date
    Oct 2005
    Location
    Bulverde, Tx
    Posts
    1,244

    Default

    I didn't say anyone was gouging. I am saying that if you buy at retail and mark it up again, say the 40% you said, that isn't going to fly here. If you had to pay taxes on it, chances are very good you are buying retail. My steel supplier will charge the individual off the street the same as he charges me. This area will not support that kind of markup at all. I do a thousand small jobs of 150 bucks or less per year. My material costs are usually around 40-75 bucks. If i was to mark them up, I would be out of business. You should hear them scream about the $2.50 fuel surcharge we were forced to charge. In my trucking business, I will loose business over 5 bucks or sometimes less. It is that tight. Mark it up and it will cost you, plain and simple. Using the welder supplier is a flawed arguement. You are buying retail from him. You expect to pay the mark up in that case. He has to pay his employees, rent, taxes, and overhead associated with selling his wares. The avg welding shop is not selling materials. They are the middleman and not the end user. If I pay retail, I charge retail. I simply refuse to mark up from there. I don't like it when it is done to me and I won't pay it if possible. That is all I am saying. I charge people for pick up, sometimes handling and delivery. I just won't mark up prices more than a few bucks to round it off. That is MY perogative and the way I choose to do business. It may also be why I have been around a lot longer than some of my competition. Do what you will, I don't care. I simply stated what will and won't work in my case.

    FWIW, I am on a job now that has over $10k in materials. A 10% on top of materials would have cost me the job. 40% and they will never call again. This is a medium sized job for me. My profit on materials will be in the 500 buck range. Lots of times, it isn't that much. The market is too tight, plain and simple. I pass up a lot of work because I refuse to work for free. When the market relaxes some, it may be different. But that may be a long time from now. In the mean time, I have to do what I have to do to work and make money.

    My mechanic does the same thing. He charges me the exact same, unless there was a handling fee, for my parts. He knows I can go and pay the same
    thing he does.....and I do. All the time. Without a resale certificate or tax exemption cert, here, you are buying retail.
    Don


    '06 Trailblazer 302
    '06 12RC feeder
    Super S-32P feeder

    HH210 & DP3035 spool gun
    Esab Multimaster 260
    Esab Heliarc 252 AC/DC

  5. #25
    Join Date
    Sep 2002
    Location
    Clark County, NV
    Posts
    2,696

    Default

    And every single job is different. My markup is sometimes nil, sometimes double, often somewhere in between. The smaller the job, the bigger the markup to cover going to get it.

  6. #26
    Join Date
    Sep 2005
    Posts
    843

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    I think its up to each person to do what they can to treat their costomers fairly. If your market supports a 50% markup and you dont loose 50% of your business because of it, thats fine. In my area I find atleast half my business comes from word of mouth, I have to be consistant or those people will soon compair their costs and question me. Thats how I came up with my mark up of 10%, if the job has a $100 in material-$110 is fair, now if its $1000- charging $1100 isnt going to cost me the job, I dont see jobs that go over $5000 in material so I never make a killing on mark up.
    Some of you are doing this for a side job out of your home/shop and dont have the over head to deal with that others of us do- here again I will mention that when I run for materials I have to have someone in the shop while I leave, so it costs me money just to get the material, I am not in business to loose money , so the costomer helps me cover the costs. If I were doing this work as a side job it would be different.
    I think the new spin on this thread (other then the 2 Dans thing) should be what do we do to get our customers ? Actually I think I will start that thread next. Stay tuned.

  7. #27
    Join Date
    Mar 2006
    Location
    Ocean City, Maryland
    Posts
    951

    Default

    Don

    I'm not finding fault with the way you run your business apparently its doing well. As much material as you buy I'm sure your not paying retail for it. So. You pass along the "wholesale" cost to your customer? I'd be surprised if your customer pays what you pay for steel . I do have a sales tax number and am not charged sales tax when i puurchase steel or parts, but I do have to cahrge sales tax on any item re-sold. INcluding steel. As far as your mechanic goes if he doesn't mark up parts you'd better keep him. I've been in that business for 27 years and have 11 mechanics that work for me. ALL parts are marked up[spent 250K with napa and 150K on GM parts last year]. I don't know of any one that does not mark up material. Carpenters, plumbers, electricians etc. Again i see nothing wrong with not doing it I just didn't know anybody did it that way. Great subject, probably the longest I've seen. always curious to see how everyone else does things
    Scott
    HMW [Heavy Metal welding]

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