"I can get it cheaper online"

[Blue Banana]

So I have a few clients who are like this. They ask for a quote on a few items and then realise they can get it cheaper from some online retailer. I simply can't beat their prices, they have a low markup and keep tons of stock in their own warehouses. Is there anything I can do to have potential clients still order parts through me? Like some incentive? I am not sure what can be done and it's slowly killing my business.

 

[MDD1963]

Unfortunately for some, and fortunately for others, in today's Newegg/Amazon times, anyone with a mouse or an iphone can quickly learn what typical wholesale price is on pretty much any product in 30 seconds or less; I'm not sure there is a way around this, beyond perhaps emphasizing that you are doing the install and handling replacement in the event the product fails within it's factory warranty?. (Would you backorder hypothetical product 'ABC' from a local business if you could get it from Amazon or Newegg, or whatever the equivalent 'online parts/software megastore' is in S.A, for 10-20% less?)

 

[jack-ant]

My parts prices are higher than Amazon etc. Those that ask questions and buy their own equipment are in their own boat. I take the bull by the horns and tell them "you could get it cheaper on Amazon but make sure you order the correct part and check that the delivery time is reasonable. When you fit it make sure you do so carefully." There's a reason why they've called you in the first place.

 

[cyabro]

The one that gets most people is when you tell them that if something goes wrong with whatever they buy online they then have to send it back to where they bought.
So they should be prepared to be without it for at least a week.
If it's a part for a computer do they know how to troubleshoot to confirm the fault is in fact with that part? If they return it and the online retailer can't fault it they will charge the customer.

 

[jack-ant]

Little hints like 'if you've got the free time to get this done well...... otherwise I'd be happy to do this for you.'

 

[layoric]

I wouldn't care if someone bought a part elsewhere, but I make it clear if it's the wrong item their still paying for my time installing it, perhaps twice.
I had one guy ask me to recommend a system for him, do research, etc. For free... I just repeated back to him exactly what he said. Then asked if that made any sense, he said no.

 

[ohio_grad_06]

I just basically say they are paying for me to set it up etc so I build that into my prices, plus they're paying for my knowledge to get the right thing.

 

[sapphirescales]

You can't compete on price. There will ALWAYS be someone cheaper than you. You have to focus your business on CUSTOMER SERVICE and CONVENIENCE. Price isn't the only important thing to people. If it were, the only store in existence would be Walmart. You're paying 2-4x more for an item at a gas station then you would at Walmart, but it's convenient so people pay it. There will always be a pizza tech or other moron willing to do your job for less. How do you compete? Better service. Offer your customers more for their money.

When it comes to parts, it's important to realize that it's a LOT more convenient for a client to just put something in that you already have then to go buy it themselves, wait for it to ship through the mail, and have you put it in. We sell a ton of custom parts both by themselves and as part of a repair. Sometimes people complain that we're "expensive," but those aren't the type of customers we want anyway. Most of our customers are more concerned with how fast they can get the part or repair done rather than how much it costs.

 

[HCHTech]

Depends on the part for me. I tell folks if they want to go to the store or order stuff on line, that's cool, but I can't warranty that. And if I do an onsite for the installation and it turns out the part is incorrect, then I still charge for my visit. That sways the folks who can be swayed.

I had a gamer ask me to order a $1,000 video card once - I refused. I didn't want to worry that it wasn't compatible with his motherboard, or any of the legions of problems that might result when it didn't get him those last 3.7fps that he needed to be king of the hill or whatever. I told him I would install it if he purchased it, but no guarantees. Incredibly enough, he bought it, I installed it and I guess it worked ok, he never called back after that.

I bought a printer locally for a customer once, and he had the balls to ask for my receipt from the store so he could claim a rebate. When I told him no, that was MY receipt -- His receipt was the invoice from my company, he got all huffy and cut the call short, wrote me a check and basically shooed me out the door. I takes all kinds, I guess. If I had that to do all over again, I would mark it up 50% instead of my customary 25.

 

[brandonkick]

Your in business.

My father works at an auto mechanic shop. They have a standard minimum of 25% markup and most things
reaching 50% markup. Now having said that, its usually on things that he gets "garage" price on. He gets better
prices on a lot of parts then the average joe is going to get. So when customers come in and tell him they can
get it cheaper, he simply tells them he is in business to make money and to earn a living. If they bring their own
parts, then the labor rate goes up and he doesn't warranty anything other than the labor not including work
that needs to be redone due to faulty / incorrect parts they brought in.

Cheapskates need to understand that a business is in business to make money, not to make some random person
extra happy because they got a killer deal on the work they needed done.

 

[cypress]

I think the auto mechanic shop is the perfect example of marking up your prices. This is a business and you stand behind your products with warranty when you install it. That is the way I have put it.

Convenience is key. I honestly don't have any issues at all with my clients trying to shop around with parts, because I tell them up front. If any issues I will handle the warranty.

 

[WindsorComputerRepair]

I don't even try to compete. People come to me for a reason, and if they're going to say that they can get it online for cheaper, then I tell them "Go ahead, feel free".
I find that in 95% of cases, these people who want to save 10% on their bill are the same people who expect a free diagnostics and go "Okay, thanks for the info, I can order everything online now".
Best just not to have them as clients.

 

[3ft]

We run across an occasional client who like to price shop. Typically these are clients we only hear from once or twice a year, who usually have someone employed that feels a bit more comfortable with tech than your average corporate user. While we'd like to make the markup on everything we quote, we still end up charging them for our time, even if just a consulting fee to put together the quote. More often than not, even if they don't order through us, we'll make up the difference in bailing them out in the long run.

 

[16k_zx81]

I just inform them of the pros and cons, and let them make up their own minds.

The issue here is quality of service and speed of service, both of which are generally higher when dealing with a local business owner.

If they buy online and something goes wrong, 2 things:

1. they will probably be emailing a call-centre monkey who doesnt have a clue, as opposed to you, who does, with probably a faster and more informed response to any query they would care to throw your way. No one likes dealing with bottom-tier tech support staff, so this is an easy sell.

2. they will have to send it back to (x seller) at their own expense. This means time and additional cost, whereas, if they bring it to you, quicker response and no out-of-pocket getting it to you.Again, an easy sell to any customer equipped with a brain

So then I get them to do the maths on the postage for a couple of faults and by the time they do that its pretty much a no-brainer who they are going to want to deal with.

And if they dont, then they are not your customers, they are someone elses, and, you probably dont want bottom-dollar shoppers at the end of the day, anyway, so no loss: this means the time they would take up chiselling and low-balling could be used to service someone who can afford to pay you what you're worth

 

[altrenda]

I just inform them of the pros and cons, and let them make up their own minds.

The issue here is quality of service and speed of service, both of which are generally higher when dealing with a local business owner.
.................
And if they dont, then they are not your customers, they are someone elses, and, you probably don't want bottom-dollar shoppers at the end of the day, anyway, so no loss: this means the time they would take up chiseling and low-balling could be used to service someone who can afford to pay you what you're worth

Wow, a blast from the past. Welcome back.

 

[jzukerman]

My markup on hardware/software is the cost of researching and ordering the correct part for the client. I don't give out part numbers in quotes anymore for this reason. Quotes are real generic now, especially for servers. If the client insists on the part number, then I provide the part number + a bill for my time, because my experience/knowledge isn't free.

 

[pcpete]

We mark our stuff from 30 to 150 percent and do not even think twice about it. People buy from us because of support and convenience. We do not even try to compete on price.

 

[fencepost]

In a lot of cases I prefer to have customers purchase their own hardware as long as I get to bill them for the time I spent researching and recommending. I also provide purchasing links to 2-3 places to get each item, focusing on a combination of cheapest, fastest and most reliable. Those may include Amazon links (where I get an affiliate credit) but just as often will be Newegg, CDW, OfficeMaxDepotStaples for sale items, etc. Part of this is headaches with warranty stuff in the past - if I sold it to them then six months later end up with a week of downtime waiting for a part from Lexmark/HP/whoever then it's my fault for selling them this crappy printer. If they bought it themselves and we end up with the same week of downtime waiting it's the manufacturer's fault.

For your own, if you have people that want you to research and purchase, go with the markup. If they come back with "I can get it myself cheaper" be ready to bill for the research time.

 

[unclemarv]

I charge my full hourly rate anytime a customer orders something somewhere else and then wants me to setup or install it. When they let me purchase everything, I usually give them a flat project rate. I can have stuff come to my office, where I can set it up and make sure it works and pre-load everything. Then everything is a breeze when I bring it to them.

I don't give out part numbers in quotes anymore for this reason. Quotes are real generic now, especially for servers.

We also do very generic quotes now... no part numbers. Even if a customer goes somewhere and says they thing they can get it cheaper and it looks like the same thing, I usually respond by saying that you don't know that online seller, but you know me and I am going to stand behind what I sell you. And I have HP, Dell, etc. standing behind me. Works most of the time.

Oh... and if something goes wrong because you bought if from someplace else, I'm not going to help you send it back. Well... that is... unless you want to pay for my time.

 

[thecomputerguy]

I mark everything I sell up around 100% , cables sometimes 1000% which somehow still comes out cheaper than bestbuy or staples ... I don't care about competing it about convenience ... If the customer wants to order something themselves go for it, hell I'll even give a thumbs up or down if they find something, but I won't research anything for them or provide any product recommendations.

It's about the convenience ... I have what you need right now, sitting in my car and I can install it and it's done and over with. If you would like to order the part yourself I'll be happy to head back to my office, we can then setup another appointment for me to come back when you receive the part at my full hourly rate in addition to the hour you are about to pay for.

I get questioned on pricing for items sub $300 MAYBE once a year, and I just order everything like a normal person off amazon with prime.

Oh an also, line items look like this ...

ASUS Router / $200.00 / 1