STRATEGIC PARTS MULTIPLIERS SYSTEM
The idea behind Strategic Parts Pricing is to assure
that our company produces a reasonable gross profit on all parts and materials
sold thru its service department. Due to the fact that our overhead is higher
(as a percentage of sales price) for low cost parts, we must mark-up these
parts higher to produce the same reasonable net profit. The rational for this
is simple: Lower priced parts typically do not have a manufacturers warranty and
if they did, the part is usually not returned for credit upon failure. Low priced
items also have a tendency to disappear from inventory and are more likely not
to get recorded or charged to customer invoices. This policy is for the service
department only.
Please
use the following table to find the proper retail sales price of all repair
parts and materials. Simply take the wholesale cost of the item and multiply it
by the following multiplier. Then round the result to the next highest dollar.
Example: You have a gas valve that cost
you $26.00 at the local supplier. To find the proper retail-selling price:
Multiply $26.00 by 3.375. The answer is $87.75. Round this number to the next
dollar. Your price is $88.00.
|
$0.00 |
$0.49 |
6 |
$80.00 |
$89.99 |
2.5 |
|
$0.50 |
$0.99 |
5.75 |
$90.00 |
$99.99 |
2.3332 |
|
$1.00 |
$1.49 |
5.5 |
$100.00 |
$139.99 |
2.2499 |
|
$1.50 |
$1.99 |
5.25 |
$140.00 |
$169.99 |
2.1666 |
|
$2.00 |
$2.49 |
5 |
$170.00 |
$199.99 |
2 |
|
$2.50 |
$2.99 |
4.75 |
$200.00 |
$239.99 |
1.855 |
|
$3.00 |
$3.99 |
4.5 |
$240.00 |
$269.99 |
1.8225 |
|
$4.00 |
$4.99 |
4.375 |
$270.00 |
$299.99 |
1.7862 |
|
$5.00 |
$5.99 |
4.25 |
$300.00 |
$349.99 |
1.75 |
|
$6.00 |
$6.99 |
4.125 |
$350.00 |
$399.99 |
1.725 |
|
$7.00 |
$7.99 |
4 |
$400.00 |
$499.99 |
1.6875 |
|
$8.00 |
$8.99 |
3.75 |
$500.00 |
$749.99 |
1.6 |
|
$9.00 |
$9.99 |
3.625 |
$750.00 |
$999.99 |
1.55 |
|
$10.00 |
$19.99 |
3.5 |
$1,000.00 |
$1,499.99 |
1.5 |
|
$20.00 |
$29.99 |
3.375 |
$1,500.00 |
$1,999.99 |
1.45 |
|
$30.00 |
$39.99 |
3.25 |
$2,000.00 |
$2,999.99 |
1.4 |
|
$40.00 |
$49.99 |
3.125 |
$3,000.00 |
$4,999.99 |
1.35 |
|
$50.00 |
$59.99 |
3 |
$5,000.00 |
$9,999.99 |
1.3375 |
|
$60.00 |
$69.99 |
2.75 |
$10,000.00 |
$24,999.99 |
1.3333 |
|
$70.00 |
$79.99 |
2.625 |
$25,000.00 |
$49,999.00 |
1.33 |
In order to ease customer
concerns with regard to the pricing of common and easily accessible parts, we
will use the following reduced multipliers for the parts stated. Generally
speaking: The more sophisticated the part, the higher the gross profit margin.
The least sophisticated and most commonly available components generally
warrant a lower gross profit margin.
DESCRIPTION OF COMPONENT
|
ALTERNATIVE RETAIL PRICE |
| Pilot Safety Switch (old name: Thermocouple) | $ 16. |
| Refrigerant (R-22)
|
$ 12.00 per lb. |
| Disposable Air-Filters
|
x 2.00 |
| Electronic (set-back) Thermostats
|
x 2.00 |
| Standard Thermostats
|
x 2.006. |
| Oil nozzles (oil furnaces)
|
x 2.50 |
| ___________________________________
|
x ____ |
| ___________________________________ |
x ____ |
| ___________________________________ |
x ____ |
| ___________________________________ |
x ____ |
|
|
Copyright
1996-2001 by MrHVAC.com Inc. and James R.
Leichter