Ethic's

[Mike8560]

Well 90% of my customers like to get a discount for the best quality work/materials etc. Who wouldn't.
I believe I price each job competitivly & so not keen to give them one.  :P
One particular guy beat me down on a job lot of covers, then ask for something to be included FOC & still wanted the IVA (Tax) knocked off  ???
Most of them want the tax knocked off, but I still have to pay it  >:(. So simple solution is I add the tax twice  :o Then I can be so generous to knock it off the bill, the customer is happy & so is I.  ;D
I don't have a problem with it, they sure don't mind if I loose out so why should I by keeping things level.  :P

gre o do tou write up two contracts. One for the customer a d one for be books that shows the real cost showing the tax?

[Mike8560]

I think the bump and discount is used all the time by retailers. I don't like it, but it's there.

I don't do this on my projects and I don't offer discounts during the normal season unless they want multiple projects done on their boat, or it's a large project.

I do however offer winter discounts depending on the project size. The quote is normal, not bumped. It's a necessity here up north if you want to have work during the winter months.

Let's face it. When pricing out a job, we need to include a mark up on materials to cover shipping and handling. And your hourly rate should cover all costs (payroll and operating costs), and a profit. After all, every business needs to make a profit for the lean times.

So, when I offer winter discounts, I essentially lower my material mark ups and my hourly rate.

That's my opinion, but you know what they say about opinions.  :D

I used fo h s a sale in march to encorafe owners to dif there boat out of be back tard and get work started a month or so early when I was up
north. Regal.

[Darren Henry]

I am having a hard time with this. I feel it is unethical and I need to be able to look myself in the mirror every morning and know I did right by people.

I'm the same way,and I couldn't comfortably do the bump and cut B.S thing.

If I picked up material on sale ( clear outs,full roll pricing, etc..) I would pass that along to the customer as a discount over suggested retail. I would offer added value promotions like " let me do your boat top over the winter and I'll give you free storeaqe to save you $350 renting from someone else" , but that's it. My margins where way to tight to do any more. ( did I mention I'm no longer self employed.)

[stitcher_guy]

My brother handles advertising for the largest locally owned furniture store in Central Illinois, as well as three different stores for one of the largest national chains of furniture stores. In the last 17 years of doing the local store's advertising, there hasn't been a single week that I know if that they have NOT offered 10-20-30 whatever % off. That's just how it's done in that industry. Furniture also routinely sees a 300% markup for retail, with the intention of "slashing" "chopping" "hacking" the price. The also will buy a container from a Chinese cargo ship, sight unseen, full of chairs and sell them at barely above cost. These pieces of junk get people in the door. Those that can only afford these pieces usually get financing, so money is made off them. The other customers are steered to the more expensive pieces.

The difference. They only buy and sell, buy and sell. They move a commodity through their store. It could be furniture, cars, widgets or wankles. It doesn't matter. No one has to know how to make the pieces they sell, and no one puts the hours of building into it that we all do.

I do the standard industry markup on material, and charge for true hours worked. I don't have time to figure out how much more to mark up to offer a discount, and if that's not all figured out, then there's a risk of losing money. The only discounts I offer are through our local Farm Bueau for materials to farmers. It's not much, and it's a true discount not inflated, but it is a source of advertising for me.

I don't begrudge car dealers, furniture sellers or anyone marking up and discounting. There's always going ot be someone willing to pay the inflated price, or really think they're getting a deal with the discount. It comes down to getting all the money that's on teh table. Let the buyer decide.

[Mike8560]

That's like every spring down here when the snowbirds Leave a local regaled had a 50% sale on shirts and shorts. That when I go.