Hearthlist Digest #136 - Saturday, April 11, 1998
 
Re: Estimates and Thelin
  by "by way of Craig Issod" <[email protected]>
 

(back)
Subject: Re: Estimates and Thelin
From: [email protected] (by way of Craig Issod)
Date: Sat, 11 Apr 1998 12:23:56 -0400 (EDT)
 
>Hearthlist Digest #135 - Friday, April 10, 1998
>
>  RE: estimates
>          by "Timothy James Nissen" <[email protected]>
>  Re: Thelin
>          by "Maureen Fallon" <[email protected]>
>  Re: Estimates
>          by "Paul Scott" <[email protected]>
>  Re: Estimates
>          by "Jim Butchart" <[email protected]>
>
>
>----------------------------------------------------------------------
>RE:  Estimates:  The issue of estimates will always be a question within
the realm of retail.  I want to focus on the issue in terms of economics.
An estimate falls into the catch-all net of "RENT."  Rent is due when a
customer has access to your capital, which in this case is technical
information on a theoritical and applied applications.  RENT needs to be
paid when a customer requests capital but does not desire to aquire the
total cost of such capital outright.  This is the same fee required by a
doctor or lawyer for "RENT" of their valued asset...their knowledge and
experience...capital!
YOU MUST RECEIVE A RETURN ON YOUR INVESTMENT OF CAPITAL!!!
You can create a "return on investment" through the maintainance of a
reasonable "gross profit margin."  This is the difference between what you
pay for something and what you sell it for.  GPM is a percentage of the
selling price.  As long as you maintain a sound GPM, that means sound for
your specific market area in terms of costs of doing business, then an
estimate that is WELL QUALIFIED is a reasonable cost of doing business.
        On another tack, if you feel that most every sale must be discounted
below the level you need to create a sound return on investment, then you
should charge an incremental "cost" for that sale to the customer in order
to pay for that rent not accounted for by a reasonable gross profit margin.
        Of course, you can absorb the extra costs of doing business AND
still discount every sale ...until you go out of business... or not pay your
 vendors...which extends the time before you go out of business...or cheat
the IRS...which extends the time before you go out of business...or provide
"cheap products and service" which cheats your customers and extends the
time before you go out of business.
        DO YOURSELF A FAVOR...BE IN BUSINESS TO STAY IN BUSINESS...OR GET
OUT OF BUSINESS NOW AND SAVE ALL OF US A PORTION OF YOUR PAIN.  That is
unless you are a thief at heart.  If that is the case, then may God have
mercy on your soul.
 
RE:  Thelin Stoves.  Those folks who are interested in Thelin Stoves should
go to their HPA Directory and call Jay Thelin at 1-530-273-1976.
Fax:  1-530-273-3707.  email:  [email protected]  I will tell you one thing,
Jay Thelin cares about his customers. He makes a unique product and does
everything in his power to stand by it.  Lots and lots of integrity.  Yes,
Jay is not an aggressive marketer.  He does the best with what he has. Call
him.
Best Regards,
Jay Hanson