Does anyone charge list prices like what is in catologs and manufacture web sites? An example would be a CH BR loadcenter 200a main breaker 40/40 list price $780. Or a Siemens P5 panel board 1200a with main breaker $12,710. Or are the numbers used as a sales tool like "we're giving you this for xx% off list price. Or is it disreguarded on big and small jobs?
Service equipment list prices are ridiculous! That $780 panel is about a 1200% markup over our actual cost. I don't quite understand the purpose of list prices that high. If someone does charge that I'd like to know how they do it.
#43379 - 10/11/0408:46 PMRe: Who Charges List Price?
I always figured it was a marketing tool. A feable attempt to influence the consumer's precieved value of something. Kind of like MSRP on cars. Then they came up with what they call "Invoice". By its name one is lead to believe it's what the dealer paid for it. And WOW! I've heard of people paying under invoice!! Yeah sure!! "We make it up on volume" they'd have you believe.
I'm sorry, I tire quickly from marketing crap. I might as well be listening to a politcal debate if I want to get the straight story. I just get tired of crap.
#43380 - 10/11/0409:15 PMRe: Who Charges List Price?
You do it the same way the plumbers do, New heating unit $3,900 list. Ok i will give you 50% off $1,950 Then go to supply house and pick it up for $975 Plumbers and AC Guy's have been asking these prices and getting them, it's not just your hourly rate, that makes your business grow.
#43381 - 10/11/0409:39 PMRe: Who Charges List Price?
List prices do seem excessive in the catalogs, some are down right scary. Though you do have to cover yourself for those times when a newly installed product goes bad and you have to go back and replace it at no additional charge 'cause you supplied the part. Experience will teach you which parts are more at risk than others, which then require a higher markup over your cost. BTW, some of those catalog prices are so high you could offer free installation, eh?! Andy
#43382 - 10/11/0409:56 PMRe: Who Charges List Price?
Those are the prices you show customers that knock on your door asking why you charged so much for an item. Show them what the book says you should charge and what you charged them and they walk away feeling better. Doesn't matter what they could have gotten it for at Home Depot. It's in black and white in a pricing book. How can they argue? Ron