tshanks

In a retail environment, what is the suggested markup for parts... i.e. like in a mom/pops computer store...

I currently work for a small computer store in the chicago land region, and my boss tells me that all parts are to be marked up at 1.67 because that is industry standard... That makes a router that costs $58, now retails at $96. Personally, I think he is full of shit when he tells us this, but I just wanted to get an idea what everyone else thinks... And yes, our parts comes from TechData, NewEgg, Best Buy, Comp USA, and other locations...

Thanks
T

killer_cow

Well to be honest, it's all about demand... if you can charge a price, and people buy it for that much you are either charging a price that's too cheap... or just right. (from a business point of view)

Also you can't forget convenience. A lot of people find it hard to shop online for PC equipment, mainly because they don't know what they should be buying. If you offer ***istance in purchasing goods, this costs your company for the time you spend helping someone. There's rent, running costs and all sorts of other expenditures that happen back-stage aswell so it's not uncommon to mark up around by 40-60% in a retail environment.. at least in my experience anyway!


Saying that, as someone who goes to people's houses to help them with PC problems, I love to impress my customers by showing them prices from stores that do charge high mark ups... and then often undercutting that price by about 20%.


Would be interested to hear how RipperRoo's markups compare...?

---