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Old 04-09-2009, 02:42 PM   #850
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Join Date: Oct 2004
Posts: 1,855
IMO, if say a Handphone 1st hand brand new, outside selling for $500, you can walk the whole toa payoh central and find one for say $480, thats ok. Discount of $20.
But if you find one @ $400, what is your initial thoughts?
Is he selling a recond set passing off as new? or export set?
We are stating a product as an example here.
If services + products. installation being service and equipment being product.
Equipment price = air con equipment is more or less the same. Panasonic will sell their air con equipment thru dealers which your air con contractor will get from them. This price is controlled like RRP. Recommended Retail Price.
What the contractor will play around with is the installation.
I don't quite tink giving u G22 piping and 3/4 insulation, he can make a good profit margin out of it.
Unless he takes the jobs and sub contracts it out to Malaysian workers to do which will result in drop in quality.

A gets deal for $2.1k. Equipment costs say $1.3k (assuming).
2.1k - 1.3k = 800.
He takes 300 as commission and gives 500 to B.
B will take the 500 and buy materials (piping/insulation etc) to install the aircon.
Whats left is his profit. So do you think he will buy expensive materials? We base on expensive = good quality products.

I'm not saying that you did not found a good deal or trying to "pour cold water"
Remember, sometimes too good a deal, is too good to be true.

Last edited by terumo; 04-09-2009 at 02:45 PM..
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