Dry Cleaning pickup discount?

[EasyMatt]

I'm considering taking in dry cleaning for my fluff and fold customers. Basically, my idea is to have separate ID'd bags for each customer. My employees would count the number and type of each item for each customer. At the end of the day, I will take the bags and drive them over to the dry cleaners.

In this scenario, what should discount should the dry cleaners be providing me off of retail?

I already know that they shouldn't charge me sales tax according to the tax law of my state (it's a retailer/wholesaler relationship thing b/c I charge the sales tax with my customers).

I've already talked to one dry cleaner who told me he'd cut the price 10% off retail. But he said, that he would cut the 7% sales tax, and then additional 3% in sales tax. Well, that sort of insults my intelligence as a businessman for one...knowing that this guy is booking all his sales to me as tax exempt. Thanks for the 3% off retail:(

OK, so I read this book that suggested typically I would get 30% of the profits. Well, that's great. Now all he has to do is show me his books so I can figure out his profit and then ask for 30%. I don't think so. Not to mention, the book doesn't get spefic on the definition of profit. Net Income, EBIT, EBITDA???

So, how much can I expect to get relative to his retail price. Please quote percentages off retail, ex: if a shirt is $1.00 and the discount is 30%, then I would pay $0.70 in this (wishful) scenario.

Oh, yeah, I can safely estimate that I would bring this guy $20k per year in terms of his retail prices.

Thanks in advance!

[millenniumplus]

We have gone through 3 Dry Clean companies before we settled in the past 7 months with who we have right now.
We've charged between 20-35% over the retail price of these companies. The company we are happy with we get 20% on average. We make
a higher percentage on things like dress shirts and less for things like casual shirts - please don;t
ask me to expain this logic. The bottom line is we offer this service more as a convinence than anything else.
We use the invoice/tag system via WDF/FLUFF. We settled in with this Dry Clean company because they do one heck
of a job pre-spotting stains and with heavy starch - which is in high demand around here.
This enables us to have a following of customers that don't compain very much about our price. Our Dry Clean
business is very busy. Customers like dropping off/picking up their stuff as early as 7AM and as late as 9PM
seven days a week - where Dry Cleaning company hours and days open are more rigid, yes. We drop off
and pick-up Dry Cleaning ourself which also reduces the price Dry Cleaning companies offer. Yes, we made a higher percentage with other Dry Clean
companies but Dry Clean results were average. What is important to us is customer satisfaction even if it means
less Dry Clean income. Our only wish is that the company we work with right now offered "one hour" dry
cleaning. My point is that you go pick a company and go with them. If you are unhappy for whatever reasons,
move on. You may end up moving around a bit before you settle in on a compy that meets most or all of
your needs. Before I forget, none of the companies showed me thier books. Well, let me qualify that by saying
several companies showed me their prices "but" was that their real books or the IRS ready second set of books.
Between the lines be sure you carefully examine the clothes before they go to the Dry Clean company and
that the clothes are adequately tagged. Dry Clean business can be a hassle. From losing clothes to poor
cleaning or being accused of damaging items this all can be a real big headache. Good luck!