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Date:         Sun, 27 Aug 2000 18:05:44 -0500
Reply-To:     Matthew Libby & Denise DeWolfe <matandded@netway.com>
Sender:       Vanagon Mailing List <vanagon@gerry.vanagon.com>
From:         Matthew Libby & Denise DeWolfe <matandded@netway.com>
Subject:      Re: Napa does not make cooling hoses
Comments: To: Garrett Adams <gadams@jps.net>
Content-Type: text/plain; charset=us-ascii

By markup I meant how much more NAPA sells a part to the consumer than they pay for it from the warehouse....

Matt

Garrett Adams wrote: > > You would need to know how they calculate their profit. Back in 1975-80 I > managed a camera store where the method used was as a percentage of the > sales price, not a percentage of dealer cost. When I started in the business > I was told there were two ways for calculating profit but that the > percentage of cost method was not as popular. Thus, using percentage of > the sales price, an item with a one-third profit which sells for $100 would > have a net cost of $66.66. To determine your sales price you multiply your > cost by 1.5, or just use a readily available profit wheel, a plastic device > for quickly calculating various markups (we used 40% for most items). > > I admit that most consumers would look at the above example and think that > they were seeing a 50% markup because the profit was one-half of the dealers > cost. I suppose the percent of sales price method was favored because > one-third doesn't sound nearly as high as one-half. Consumerism at work. > > Garrett Adams > 83.5 Adventurewagen GL > Stockton, California > > -----Original Message----- > From: Vanagon Mailing List [mailto:vanagon@gerry.vanagon.com]On Behalf > Of Bill Davidson > Sent: Sunday, August 27, 2000 7:44 AM > To: vanagon@GERRY.VANAGON.COM > Subject: Re: Napa does not make cooling hoses > > > One more tidbit. NAPA will negotiate on prices. The standard mark-up > > for NAPA is 33%, so by deducting 33%% from your quoted price you can > > figure out what they paid, and haggle. Most places will! > > Matt, > Actually.... a 33% mark UP is equal to a 24.8% mark Down... > Do the math and you will see.. > This counter intuitive and common mistake has lost people many fortunes :) > Bill


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