Sales question for those of you in sales

Shawn1112

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Long story short, my boss and lead salesman passed away about 6 months ago. I have had to learn sales on the fly and have been able to cross-reference some stuff he has done to help me out. In my industry average mark up is 30%. I have a shelving quote I'm working on and have a question.
Should I quote 30% over my cost or over list price? Our cost is 58% off list price. Looking back at older jobs my boss sold, I can only find one where he actually broke cost down by line item vs grouping the whole job together. On that job we paid $588 for the product and he sold it for $1642. That was for the same customer asking me to quote some new shelving for them.
I dont want to sell my self short, but dont want to lose out to a competitor either.
 

Shawn1112

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So the one reference you have is roughly 35% margin. If it's a repeat customer and you're looking to be competitive I'd do 30% above cost for the shelving. Do your bids include labor? What's your labor rate if so
Yeah but that is 35% over list not cost
Does not include labor, my labor rate is $60hr and delivery will probably be $250.
 

Shawn1112

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There's profit built into delivery and installation. I'd be looking at the total profit $ for the entire project. What I am getting at is that you might be able to lower the cost of the shelving and make $ back on the services.
If it was a larger job, then I get it.
This is just 2 bays of shelving that shouldnt take any of my installers more than 2hrs to set up.
 

Grabber

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Dec 11, 2007
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Wheeling, IL
Based on how Datum structures themselves, I believe they also sell direct to business, but, not at dealer pricing. Most likely, they'd be quoting list price to a random business vs. a large volume dealer.

I would mark up the percentage off of your cost and add the labor rate and delivery as separate line items.

If you mark up over list, you're shooting yourself in the foot as there are more and more small businesses that will lowball the ever loving hell out of things and make less than 10% just to get an order. Most likely, this won't be the case for you.
 

boostedguy05

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my markups are always over my cost. but in my industry there really isnt a "list" price. its just the price :rofl: The people that come to me can only get the items through me, unless they are buying used parts off e-bay.

and everything depends on the cost. but usually anywhere from 50%-15% markup
 
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