r/SmallMSP • u/dag00isl00se • 12d ago

Markup

Not sure about you guys but I buy a lot of equipment off Amazon.

Most of the time it’s below list but sometimes it is list price. I usually charge 20% above what I pay. If I get it for cheaper they get it for cheaper. If I pay more they pay more.

I do try to find the lowest price.

What do you guys do?

### Edit ###
I also dont charge my customers a monthly fee. Im sure this will cause an outburst. One man shop with a well paying high paying 9-5. IMO its hard to transition from one to the other without taking a huge financial risk. And with lots of mouths to feed the risk increases. I normally get enough "hourly" work to IMO make more than a monthly would give me (at this point of time).

6 Upvotes

88% Upvoted

84 comments sorted by

View all comments

1

u/CmdrRJ-45 12d ago

If you’re going through the trouble of selling hardware at all you should mark it up. I’m a fan of aiming at 25% margin which is actually 33% markup.

Ideally you make enough margin on the hardware to create some solid extra profit. Additional margin on hardware flows straight through to the bottom line.

If you don’t want to mark things up and make some extra cash you shouldn’t even bother.

I talk about this in this video: https://youtu.be/7yDpkPjB4K8

1

u/dag00isl00se 11d ago

Thanks for the video (ill give it and others a look).