# Mark up %



## Marsh (Apr 28, 2008)

When customer goes into 40yr, Life, luxury shingle covering the cost is a no brainer w/ xtra labor in some cases. But what is a fair mark up for the upsale? 30% , 40% ????


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## johnk (Apr 23, 2007)

I'd say 30% is fair,at least where I'm from.


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## Slyfox (Dec 22, 2007)

Myself i don't change mark up % from standard to luxury,
30% of 100 = 30
30% of 200 = 60
the cost of labor and materials increase, thus the outcome of a set mark up % increases.

Of course i'm a one crew company and i actually work for a living myself, so an actuall business man/woman might (probably would) disagree :no:.

Waits for Ed, TRG or Al to post thier thoughts.


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## tnt specialty (Apr 19, 2007)

actually, it goes the other way.....

The NRCA used to put out management surveys. It was a valuable source of industry/business information that helped me in the begining....

First & foremost, you must know your REAL costs.....Once you have that....

All things equal.....We all know the costs.....we have a general idea of bid results......I've worked in 4 different states......20% is a safe area to begin. Larger outfits can charge less; Smaller outfits can't.....but sometimes do, on account of ignorance. etc....


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## StickBuild (May 9, 2008)

When you do a mark up you should use a marketing formula, which adds a fudge factor into the total price. This will help just in case things go up a little, especially on jobs you have scheduled for a later date as we all know once we have them sign the contract we are responsible to full fill the requirement.


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## BattleRidge (Feb 9, 2008)

if you mean materials mark up, I have always don'e 15% in every trade. I nevere even thought any different. If its a long way away or something odd, sometimes I tack on, especially if I have to hunt it down.


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## Ed the Roofer (Dec 12, 2006)

Good, Better, Best, Markups is what I think he is seeking, as if there are any elevated markups for more premium producs.

Base "Good" product is approximately 50% Gross markup and 30% Net.

"Better" goes about 10% higher material markup plus true additional labor costs.

"Best" goes for about 20% higher material markup plus true additional labor costs, plu, there is usually Copper Valleys and flashings involved in that option too.

Ed

edit:
By the way, I am Not getting those this year on most jobs, but have stuck with my system and may need to change it a bit, like at least 10% to 15% lower, at least for the time being.


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## rbsremodeling (Nov 12, 2007)

Ed the Roofer said:


> Good, Better, Best, Markups is what I think he is seeking, as if there are any elevated markups for more premium producs.
> 
> Base "Good" product is approximately 50% Gross markup and 30% Net.
> 
> ...


minimum markup here is about 60% as time progress and name recognition and as you add project managers, salesman etc it goes to 100+% markup

These markup are for legal, established, law abiding contractors


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## BattleRidge (Feb 9, 2008)

Ed the Roofer said:


> Good, Better, Best, Markups is what I think he is seeking, as if there are any elevated markups for more premium producs.
> 
> Base "Good" product is approximately 50% Gross markup and 30% Net.
> 
> ...


you mean materials mark up right?


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## Ed the Roofer (Dec 12, 2006)

For the first category, Good, the 50% Gross markup is profit before expenses totals and the Net is the remaining profit.

For the next 2 categories, then it is just added materials markup.

Ed


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## BattleRidge (Feb 9, 2008)

ah I get it now. thanks


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