Reasonable profit margin or a rip-off?

[lesweeks]

I needed some copper tacks - quite a lot actually. So I googled and got the usual on-line swindleries come up with their 25gm packs (about 65 tacks per pack) as well as some of our better known 'Classic' suppliers who'll sell 'em by weight. The differences in price are staggering.

On the basis of buying 2kg;
the 25gm poly bag boys (and I looked at 4 of them) varied between £61.38 and £90.12 (all including P&P & VAT).

That's a lot. So the intelligent thing would be to buy them loose by weight, yes? No!

Our 'Classic/Traditional' friends, for the same weight (all inclusive) want £113.40 or £120.84!!!

A little more googling brought up Frank Shaw (Bayonet) Ltd. - you know them, little blue & yellow boxes. Four 500gms boxes of bright, shiny, copper tacks, total price £43.20. Ordered mid day, delivered the next.

Now I don't mind paying a LITTLE extra for a chandlery service (bearing in mind that on-line is generally cheaper than paying over the counter so you're not exactly supporting the local guy), but I object to being ripped off.

What do you think?

 

[jstarboat]

Hi Les,
The reason for the different in price from place to place is the ever increasing price of copper on the world market. Where the price is lower is because they have old stock on their hands and have not increased the price in line with new stock prices. They will get a big surprise when they come to restock their stock. Other outlets get bigger discounts because they can buy in large bulk where others can not.

I hope this answers your question.

Regards

 

[lesweeks]

Simon,
I accept your argument to a point; the chinese have a lot to answer for when it comes to mineral resources etc. but to claim this has led to a difference of up to an extra 200% in retail prices is a bit simplistic. I could have quoted other examples - I will......

Decking canvas, 2.74m wide - £15.50/m (before extras) from a chandlery, £4.68 for the same from an on-line distributor. Another 200%+ extra. I don't believe the chinese are buying up all the world's decking canvas!

Adhesive; £86.55 as opposed to £66.24 - only 31% extra - bargain!
etc. etc.

Economy of scale; as I said in my original post, I expect to pay a little extra from a chandlery (I pay more in my local village shop than in the supermarket 'cos it's convienient), but an extra 200%?

Fair profit or rip-off?
Les

 

[pyrojames]

You might find that the mark up is more like 500% for a lot of simple engineering items. Gearbox bearing for Volvo for example £60 from VP, £12.50 from engineering supplier. I have genaerally found boths/screws etc to be similar. The copper mentioned by the OP is slightly different. Metal prices do fluctuate wildly, by 100s of percent on occaision.

 

[jstarboat]

Hi Les,
When it comes to the boating industry the price depends on how much you can get away with and have the balls to do it. This is highlighted by the different in pricing of boat jobs around the country and how much people are willing to pay for the work and the way boatyard owners think that they have the right to charge the the earth for the simplest little job.

Regards

 

[Seanick]

"This is highlighted by the different in pricing of boat jobs around the country"

Nothing to do with the different costs of living, house prices, wage rates, demand etc around the country then !

 

[jstarboat]

If people were not so greedy about how much they were worth, and their self important. I have asked people in the industry and they say they charge what they can get away with and there is people who are proper to pay this price.

Regards

 

[Seanick]

Sorry, could you check your grammar,as I am not sure I understand you.

 

[jstarboat]

People charge what they can get away with,
how greedy they are,
and how cold hearted they are to their fellow man

 

[Seajet]

Don't even get me started on Volvo spares prices, £22.00 for a 10mm stainless castellated nut, and that was in 1988 !

The surefire way to a mega-% markup is to write 'marine' on anything, which is why when things are suitable - say stainless steel sinks, flexible gas hose and possibly interior lights etc I recommend caravan shops.

We can take heart in one thing though, if 'aviation' is written on something it's 3 x the price of even 'marine' stuff !

 

[fuss]

Don't even get me started on Volvo spares prices, £22.00 for a 10mm stainless castellated nut, and that was in 1988 !

The surefire way to a mega-% markup is to write 'marine' on anything, which is why when things are suitable - say stainless steel sinks, flexible gas hose and possibly interior lights etc I recommend caravan shops.

We can take heart in one thing though, if 'aviation' is written on something it's 3 x the price of even 'marine' stuff !

But for aviation, there are standards of both product and workmanship. Both are rigorously proofed and tested. Anything under these values is not tolerated.

The aviation industry works this way because safety is taken very seriously. Safety in the aviation industry is very important.

 

[Alpha22]

Market forces and convinenence play a large role.
I don't mind paying 70p for a single stainless washer or split pin from the chandlery on a Saturday morning, knowing that without it, I am not going sailing.

I would object to playing that price for a dozen in the winter if I was planning to re-bed some hardware.

The sad fact is that I know I am doing my local chandlery out of their profits and we will all be angry when they close down and we can't buy that single stainless washer at the last minute on a saturday morning. So the whole weekend is ruined!!

 

[Seajet]

The aviation industry works this way because safety is taken very seriously. Safety in the aviation industry is very important.

Fuss,

I've been in the best of the best aircraft, with best of the best pilots ( Test Pilots from Dunsfold, sure I don't have to mention any names ! ) - but at other places have encountered some extremely dodgy aircraft and procedures !

As with all things, it seems up to oneself to sort out standards and safety - that and my flying abilities being a good reason why

A, I keep to light aircraft,

B, I prefer sailing, where for example a stall is just of academic interest !