# Material Markup



## gunman (Aug 12, 2006)

I was wondering how much you folks tend to mark-up your materials.


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## Diesel65 (Jan 31, 2007)

Now that is a tough question, you are likely to get hammered on this one, or ignored.

However "Markup" is a percentage that you add to each job to cover your overhead. Overhead is, what it costs you to run your company on a yearly basis and you then have to figure out (which is the hard part) how much of that yearly cost to add to each job.

I don't think anyone will tell you how much markup they use, mainly because the percentage changes from job to job and trade to trade.

A lot of people like to throw around 10% markup and 10% profit, I will tell you this does not work for me.

Do some figuring on your yearly numbers and take it from there.


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## gunman (Aug 12, 2006)

I'm refering more along the lines of a T&M job. How much do you mark up materials?


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## essrmo (May 2, 2007)

gunman said:


> I was wondering how much you folks tend to mark-up your materials.


in a perfect world, an optimum mark up is the maximum the market will bear.


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## tnt specialty (Apr 19, 2007)

Material is merely a component of the job. We add profit and overhead to the entre job cost.


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## AtlanticWBConst (Mar 29, 2006)

20 % - (says it right on all our contracts)


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## ButlerDesigns (Nov 27, 2006)

I mark up 20%, but might jump to 25% shortly if business continues to increase :thumbsup:


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## Mud Master (Feb 26, 2007)

15%-30%

Depending on size of project, backlog, and relationship with the builder/developer


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## marc (Mar 18, 2005)

Everything is marked up 100%

Siding cost $200 per sq.
Sub cost $200 per sq.
Total L & M $400 per sq.

Selling cost $800 per sq.



Window cost $150
Labor to install $70
Coil, caulk, insulation $25
Total L & M $245

Selling cost $490 per window

Gross profit needs to be at 47% so we price it to come in at 50%
we hae 3% in there for slippage


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## mdshunk (Mar 13, 2005)

Somewhere between 25% and 600%, depending on the cost of the item.


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## Same Old (Mar 9, 2007)

Siding and replacement window companies absolutely amaze me. 

I mean that in a good way.


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## AtlanticWBConst (Mar 29, 2006)

We follow the example of Government Contractors and charge $300.00 per nail/fastener....


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## Fence & Deck (Jan 23, 2006)

marc said:


> Everything is marked up 100%
> 
> Siding cost $200 per sq.
> Sub cost $200 per sq.
> ...


Marc, please come up here to Canada and run my buinsess for me!

I hold pretty stingently to a 50% markup, on both labour and materials, and that puts me right near the top in my area for pricing.
For example, we need $30 a foot for a pressure treated wood fence 6' high, installed, including a foot of lattice on top.
In new areas, there's lots of guys running around at $22. The fact that they use illegals and do not have shops, insurance, comp, or warranty doesn't seem to bother anybody.
How they do it, I don't know, but their margin has to be les than 1/2 of mine.


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## thom (Nov 3, 2006)

I don't think this question can be answered for more than a very narrow spectrum of work. 

If you're replacing a $.05 washer on a washing machine hose, doubling the cost isn't going to do much. If you're installing a $250,000. gold lav with diamond encrusted faucets at an oil company presidents office doubling the price of the fixtures probably won't fly.


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## PipeGuy (Oct 8, 2004)

mdshunk said:


> Somewhere between 25% and 600%, depending on the cost of the item.


:laughing::laughing: you slay me dude.

I mark-up all job costs based on risk. 15% mark-up is crazy (not enough) for something that costs $1,000 and is prone to being damaged or destroyed in handling. Likewise, 15% mark-up is probably unattainable for something that costs $20,000 but has virtually no risk of damage.

For T&M work, 15%. But you can believe if there's a bunch of risk involved, that premium is "creatively enhanced" by other cost factors built into the estimate.


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## dougchips (Apr 23, 2006)

Stone Mountain said:


> The fact that they use illegals and do not have shops, insurance, comp, or warranty doesn't seem to bother anybody.
> How they do it, I don't know, but their margin has to be les than 1/2 of mine.


I have to know what you folks consider "illegals"---are they American's or Mexican's? It would be funny to hear a Canadian bitching about those damn illegals from the south and they are actually talking about people from the states.


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## PipeGuy (Oct 8, 2004)

dougchips said:


> I have to know what you folks consider "illegals"---are they American's or Mexican's?


"Illegals" are those who have entered the country without regard to its immigration laws - it's that simple. 
Many make themselves available for "day-labor" employment while others are employed, in the traditional sense, on the basis of the falsified identification and social security documents they possess.


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## dougchips (Apr 23, 2006)

Pipeguy, if they are Mexican's then I am all for a train that goes directly from the border to Canada. If they are American's that are sneaking in to work and not paying taxes then I am in favor of the electric chair. 

I find humor in the fact that Canada has a problem with illegals.


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## Fence & Deck (Jan 23, 2006)

dougchips said:


> I have to know what you folks consider "illegals"---are they American's or Mexican's? It would be funny to hear a Canadian bitching about those damn illegals from the south and they are actually talking about people from the states.


We have a LOT of refugees from other countries: Afganistan, Arabia, Jordan, The Dominican, Equador, France, Germany, Russia, Macedonia, Haiti, Jamaica and other tropical isles, Philipenes, Korea, etc. Not a lot of Mexicans or Latinos.
The Canadian goverment has the most relaxed immigration laws in the world. Every year we get thousands of people landing in the country(mostly in Toronto, because it is our "big Apple"), claiming refugee status. They usually come devoid of identification, with their kids, parents and grandparents tagging along.
If they know one English word, it's "refugee". The very second they say that, they are given a welfare card, a housing subsidy, complete medicare WITH dental, a furniture allowance, a winter clothing allowance (after all, how can a black guy from Ethiopia know anything about winter?) and enrollment in an ESL (english as a second language) course. They are NOT legally allowed to work. (LOL)
They are also allowed to sponsor their relatives, even though they themselves do not yet have status. 
We also get lots of people coming for "visits" , going underground, and staying. 

by the way, we have a backlog of refugees clainming status. It usually takes 3-5 years for a case to come up before the Immegration reveiw board, by which time the "refugee" has grown roots in the "community", espcially by making babies, bedause the kids are automatically citizens) and they are then allowed to stay legally due to "humanitarian grounds. How awful it is to deport the parents while letting the child (a citizen) stay.

Naturally, they work for peanuts, don't pay taxes, and are a drain on our medical, education, and social systems.

wouldn't YOU work for less than minimum wage if you got welfare and medical, and didn't pay any taxes?
(Years ago, I was working as a car salesman. I helped deliver a brand new Caddy to someone's apartment, and picked up the trade, which was a two year old Oldsmobile. The apratment was in the middle of a renowned rent controlled, geared to income, high rise, .....slum. Apparently this person traded their car every 2 years, but had never moved. They paid cash: probably saved up welfare money)
So, you have all these "refugees" and "visitors" coming here, knowing that no matter what they'll get a few years "on the dole" before their case comes up. And when it does, they usually can't be found anyway.


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## dougchips (Apr 23, 2006)

Can you pick me up at the airport at 730 pm? Do you know any companies that pay cash?

I can now understand how people can work for peanuts and how they in turn can effect the market price. Can you turn them in or is it worth the while?

Remember 7pm and since I want a free jacket I wll not be wearing one. How do I say refugee in French? I need to practice.


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