Basic Law of Mark up

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philosophy

philosophy

Gouging is when customer complains and you do not collect money and incur legal expenses. You Loss all the way around including in customers. Loss = no business. So if your customers are complaining always about same thing then one must evaluate ones philosophy. So can you tell me why you are in business and what is your business philosophy? Is it just to get as rich as you can, or is it to be the best electrician in the community, or is it to offer a service that no one else does; so what is your philosophies? First examine why you are in your own business and work it your own way. If you want to spend your life entertaining your customers give away your service. If you want the American dream then charge more. If you want to strive for massive size than do the corporate business system. Yet they all cost us a price and each one is different so you make the call. I choose enough work to pay the bills and if we want to go fishing we go fishing. If I want to go to Grandsons school events during middle of day I go. So what is important to you? Every customer is the boss we only want to believe we are. Buy the way if customer says he can get it cheaper at home depot, it is then a time and material job you give him an itemized shopping list and let him go before he is done he will pay your price and smile.
 
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I will use customer supplied material, BUT.....
I make it clear that I will not warranty the job. The only exception is if they are providing fixtures.

Also, there's no way I will give them a shopping list. It costs me too much to stock my truck for a sale I will not make.

If they do supply materials, I will charge them T&M to go pick up what they failed to supply.
 
Gouging is when customer complains and you do not collect money and incur legal expenses.
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NOt necessarly, some customers are just complainers...Hoping you may cut your price.


A fair price is the figure you and the purchaser agree upon prior to beginning work.
 
brian john said:
As for gouging even in Florida during the hurricanes, if someone can get 3 times the price for a generator, why should the government stop him/her?
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The price gouger and the looter get convicted and sent to jail in Mississippi for that. Obviously, you haven't experienced a hurricane or other natural disaster. The above doesn't apply if the end user shoots them first.
 
This is a state law that they are working on in Louisiana.

Current law prohibits the sale of vital consumer goods at an "unconscionably excessive price" during natural disasters. The law specifically says that a price may be considered excessive if there is a gross disparity between the price charged before and after a market disruption and the price increase is not attributable to higher costs imposed upon the seller.

The law does not quantify the term "gross disparity." The Attorney General is proposing that the law be amended to specify that an increased markup of 25 percent or more would constitute a presumption of price gouging. In addition, Spitzer is recommending that penalties under the law be increased to $500 per violation plus three times the gouger?s profits.

"Current law does not provide a strong enough deterrent to price gouging. We need to amend the law as soon as possible to ensure that unscrupulous individuals to not take advantage of future disasters," the Attorney General said.
 
cowboyjwc said:
Current law prohibits the sale of vital consumer goods at an "unconscionably excessive price" QUOTE]

unless, of course, its the oil companies, drug companies, or insurance companies
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