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Old 04-09-2009, 03:38 PM   #851
Junior Member
Join Date: Sep 2007
Posts: 78
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.
Hi, terumo,

I fully understand your explanation, which is why I was very "concerned" too ( ) about his "such a good deal". He quoted me S$2.1K and mentioned that Panas0nic has extended the offer of the S$100 NTUC vouchers till end of this month (I am not sure how true it is), so if I confirm the deal with him these two days, I will still get the S$100 NTUC vouchers.

I will be taking leave on the day he is installing the air-con to try to make sure that he is providing the materials that he promised in his quotation.

Thanks for your valuable advices.
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