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Customary To Up-Charge Drivers


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So, I have a guy who's interested in getting my HomeKit setup.  He talked to his dealer, and the dealer told him that he'd be charged $200 for my driver, because it's listed as $175 MSRP in HouseLogix, and that's what the dealer gets charged at checkout.   So the dealer's tacking on a $25 up-charge.  Keep in mind that this guy *already* has the driver installed.  He only needs the HouseLogix license code.  So the dealer's not charging for installation or setup or anything... the charge is just for forwarding the license email from HouseLogix.

Is that customary?  Do all you other folks up-charge your HouseLogix purchases to customers?  I'm curious about what is considered "normal" before I go tell the dealer that I'm not going to give him a special coupon code, and go setup the guy directly.

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OK, this is where I have to tread lightly. But to be clear. House Logix MSRP is what is visible to the general public. As a dealer, there is a discount on the MSRP. In most cases. It depends on the The vendor and house Logix agreement per driver.

 

To be clear, this is what I understand to be true.

 

 

Happy Automating!

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Huh.  Strange.  It's not something I would have ever considered putting an up-charge on if I were in that business.  Whatever.  I'll go talk to HouseLogix and see if there's a way for me to separate MSRP listed on the website for end-user logins from the actual dealer's cost.  

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I doubt that would happen. People are in business to make money and they should be able to do that. Everything takes time out of somebody's day and that is all billable. Being a dealer is a big expense and $25 on top of a few bucks discount is only a drop in the bucket.

 

 

Sent from my iPhone using Tapatalk

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Everybody is different when it comes to charges.  For me, if I know that the customer already has the driver installed and setup and requires no other interaction on the purchase, then I would just charge MSRP.

But, if it requires me to order it, then remote access and install driver and setup, you bet that up charge is going to be bigger.

Plus, Houselogix is a pain for us when it comes to purchasing and I'm sure for many other dealers.  We only use Amex for our company purchases, which HL does not accept.  So now I have to use my personal cards (Visa) to buy the license, then have to fill out an expense report to get my money back.  Now I know we can use Paypal with our Amex card, but for some reason, it never allows us to select the Amex when purchasing.

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I sort of get that.  It's just not my personal philosophy is all, and I've been running various businesses since I was 18.  I'm not saying anybody who DOES up-charge is evil or doesn't have the right to do so.  I'm just saying that it's not something I would have thought to be standard practice.  Obviously anybody selling anything at all can charge whatever price they can get and MSRP is "more a guideline than a rule".  

I'm also extremely financially conservative.... Going from $175 to $200 is a 15% rate hike on a sale that doesn't cost anything to procure, ship, store, or sell.  

Like I said... not going to fault someone for charging what they want to charge... just figuring out the lay of the land.

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4 minutes ago, lippavisual said:

Everybody is different when it comes to charges.  For me, if I know that the customer already has the driver installed and setup and requires no other interaction on the purchase, then I would just charge MSRP.

But, if it requires me to order it, then remote access and install driver and setup, you bet that up charge is going to be bigger.

Plus, Houselogix is a pain for us when it comes to purchasing and I'm sure for many other dealers.  We only use Amex for our company purchases, which HL does not accept.  So now I have to use my personal cards (Visa) to buy the license, then have to fill out an expense report to get my money back.  Now I know we can use Paypal with our Amex card, but for some reason, it never allows us to select the Amex when purchasing.

really odd, i use Amex via Paypal on Houselogix...

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4 minutes ago, Joshua Pressnell said:

I sort of get that.  It's just not my personal philosophy is all, and I've been running various businesses since I was 18.  I'm not saying anybody who DOES up-charge is evil or doesn't have the right to do so.  I'm just saying that it's not something I would have thought to be standard practice.  Obviously anybody selling anything at all can charge whatever price they can get and MSRP is "more a guideline than a rule".  

I'm also extremely financially conservative.... Going from $175 to $200 is a 15% rate hike on a sale that doesn't cost anything to procure, ship, store, or sell.  

Like I said... not going to fault someone for charging what they want to charge... just figuring out the lay of the land.

well if they accept a credit card payment and get charged 3-4% for processing and they sell at cost they lose...

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Just now, msgreenf said:

well if they accept a credit card payment and get charged 3-4% for processing and they sell at cost they lose...

And that's fine.  If they take credit and charge a 3-4% up-charge, I see no issue at *all* for that.  Nobody should lose money doing business, and I know the racket the credit cards are up to.

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1 minute ago, msgreenf said:

well if they accept a credit card payment and get charged 3-4% for processing and they sell at cost they lose...

This is also true for us.   You pay with a card, we pass along any/all additional fees.  If customers want convenience to use a card, then they pay for it.

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1 minute ago, lippavisual said:

This is also true for us.   You pay with a card, we pass along any/all additional fees.  If customers want convenience to use a card, then they pay for it.

No arguments here.  That's basically what I do in my software development business as well.

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8 minutes ago, Joshua Pressnell said:

I sort of get that.  It's just not my personal philosophy is all, and I've been running various businesses since I was 18.  I'm not saying anybody who DOES up-charge is evil or doesn't have the right to do so.  I'm just saying that it's not something I would have thought to be standard practice.  Obviously anybody selling anything at all can charge whatever price they can get and MSRP is "more a guideline than a rule".  

I'm also extremely financially conservative.... Going from $175 to $200 is a 15% rate hike on a sale that doesn't cost anything to procure, ship, store, or sell.  

Like I said... not going to fault someone for charging what they want to charge... just figuring out the lay of the land.

What you listed is not MSRP but dealer cost.  All companies need a margin to cover the cost of selling the product and make a profit on it otherwise why would they sell it.

in the retail space this could be anywhere between 10% to 100% on some products.  IT is generally lower but things like cosmetics are higher.

probably not a great idea giving out your dealer cost price to the world.

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6 minutes ago, alanchow said:

What you listed is not MSRP but dealer cost.  All companies need a margin to cover the cost of selling the product and make a profit on it otherwise why would they sell it.

in the retail space this could be anywhere between 10% to 100% on some products.  IT is generally lower but things like cosmetics are higher.

probably not a great idea giving out your dealer cost price to the world.

I've *always* said the price is MSRP.  It's been my intent to have a lower price for dealers on the back-end... just trying to figure out the system, since I could have *sworn* there was a listed price for most drivers when I was looking on HL as an "end user"

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2 minutes ago, Joshua Pressnell said:

I've *always* said the price is MSRP.  It's been my intent to have a lower price for dealers on the back-end... just trying to figure out the system, since I could have *sworn* there was a listed price for most drivers when I was looking on HL as an "end user"

Nope I logged in and looked.  That's what the dealers pay you.  If you need help on this let me know in private and I can walk you through it.

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Just now, alanchow said:

Nope I logged in and looked.  That's what the dealers pay you.  If you need help on this let me know in private and I can walk you through it.

I think I worked out what you did, and I've adjusted my setup accordingly.  Should be less confusion from now on.  It was 3-4 months ago now that I was looking at the setup, and I still swear there was an MSRP listing for other drivers, but maybe that's because I happened to be looking at YOUR drivers at the time.  Mitch got me corrected.

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1 minute ago, Joshua Pressnell said:

I think I worked out what you did, and I've adjusted my setup accordingly.  Should be less confusion from now on.  It was 3-4 months ago now that I was looking at the setup, and I still swear there was an MSRP listing for other drivers, but maybe that's because I happened to be looking at YOUR drivers at the time.  Mitch got me corrected.

Yep we list MSRP for all of our drivers.  HouseLogix gave me a method on how to implement it when I asked them for it a few years back.  The system doesn't natively support it so have to work around it.

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