Knowing the answer to these questions is important for any student of Marketing
Situation A
– The ‘Manufacturer’s Suggested Retail Price’ for a Lennox Air Conditioning unit is $2500.
– The ‘Jobber’ or ‘Trade’ discount is 20%.
So how much does a local installation company pay for one unit?
Situation B
– When the installation company installs the A/C unit in someone’s house, how much Profit will they make on just the A/C unit if they sell it for the MSRP?
– Now, here is the real question, what percent Markup is that?
(He will also charge for the ‘installation labor’ that has profit too but let’s not deal with that right now.)
