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Stocking Parts

 
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Old 05-01-2012, 10:05 AM   #1
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Stocking Parts


Hey guys, I have decided I want to have a lil more readily available supply of basic electric, plumbing, and just general parts on my truck and trailer...as a residential builder and remodel contractor I see us wasting alot of time chasing parts and I don't mind big items its the lil stuff that kills me...how do you handle this in your business? How do you track it?...what's the best method to charge for it?..
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Old 05-01-2012, 10:51 AM   #2
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Re: Stocking Parts


If there's one area of my business where I've spent many hours its inventory. I have a 1 ton cube van so its really a moving warehouse of sorts. I learned early on that NOT having the parts can kill the business. If I show up to a house now I have the parts.....no exceptions.

Pricing was difficult at first until I came up with a simple solution or using round numbers. So copper fittings for example, I charge $4 per fitting no matter the type of fitting for 1/2". Each size has a round dollar amount.

Gas is the same. Its $3 per fitting and $5 per foot raw and $7 per foot cut.

This makes estimating easy.

Then I grouped common items. Example. A dishwasher hook up has common parts and I price that separate as abouve but I also group the parts for an install.......this is less for the package.

All this is in a 3 ring binder. I use the binder for everything, in fact, without the binder I would be screwed. It goes with me everywhere.

Then I make notes on price increases. I just received an email last night from Rheem saying water heaters are going up 8%. I simply re-print the sheet in the binder at the end of the month and keep changing as prices increase.

It works well for me, is easy, and makes bidding simple.

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Last edited by Oconomowoc; 05-01-2012 at 10:55 AM.
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Old 05-01-2012, 10:52 AM   #3
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Re: Stocking Parts


You're a GC?

I would strongly reconsider this proposition.

Our modus operandi is to plan ahead and discard the leftovers on every job. It's hard enough managing tools.
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Old 05-01-2012, 11:27 AM   #4
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Re: Stocking Parts


Quote:
Originally Posted by Oconomowoc View Post
If there's one area of my business where I've spent many hours its inventory. I have a 1 ton cube van so its really a moving warehouse of sorts. I learned early on that NOT having the parts can kill the business. If I show up to a house now I have the parts.....no exceptions.

Pricing was difficult at first until I came up with a simple solution or using round numbers. So copper fittings for example, I charge $4 per fitting no matter the type of fitting for 1/2". Each size has a round dollar amount.

Gas is the same. Its $3 per fitting and $5 per foot raw and $7 per foot cut.

This makes estimating easy.

Then I grouped common items. Example. A dishwasher hook up has common parts and I price that separate as abouve but I also group the parts for an install.......this is less for the package.

All this is in a 3 ring binder. I use the binder for everything, in fact, without the binder I would be screwed. It goes with me everywhere.

Then I make notes on price increases. I just received an email last night from Rheem saying water heaters are going up 8%. I simply re-print the sheet in the binder at the end of the month and keep changing as prices increase.

It works well for me, is easy, and makes bidding simple.
I'm going to snatch that binder and hold it for ransom.
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Old 05-01-2012, 12:52 PM   #5
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Re: Stocking Parts


Quote:
Originally Posted by BrandConst

I'm going to snatch that binder and hold it for ransom.
It's written in Yiddish.
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Old 05-01-2012, 03:20 PM   #6
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Re: Stocking Parts


I agree with Heritage, although I don't follow it. My shop has a crap load of different parts left over from projects. When my guys need a part they buy it. Lol. The only person who knows where that particular part is , is the guy who put it up.
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Old 05-02-2012, 09:47 AM   #7
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Re: Stocking Parts


A plumber friend of mine buys in bulk under the reasoning that he hasn't seen prices ever go down in regards to plumbing and it's not like he will never use them. He networks like crazy, and know's when one guy is going out of business and buys the stock the guy has at less than what he would pay wholesale. He apparently was so successful at this, that he buys trailers on the cheap and stocks them for work he is doing on developments. His reasoning for that is that it costs him $X dollars per hour, and if he has to run to the supply store for a part, he could have bought them many times over.

So for him, it is a convenience to have a stock on hand, makes him look more organized than the next and saves him money. Not to mention he benefits from the spread of increased labor over the years versus decreased material costs equaling increased profit...

Heck (not that he is going to do it), he could make a KILLING on copper right now...

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Last edited by KAP; 05-02-2012 at 10:03 AM.
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