# Generally speaking - how much do you mark up a sub/material?



## Titodbuilder (Feb 6, 2009)

Is there a rule of thumb as to how much one should mark up a sub's job? How about material? 

Thank you.


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## Winchester (Jun 29, 2008)

Titodbuilder said:


> Is there a rule of thumb as to how much one should mark up a sub's job? How about material?
> 
> Thank you.


No rules for any fingers.


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## bwalley (Jan 7, 2009)

Titodbuilder said:


> Is there a rule of thumb as to how much one should mark up a sub's job? How about material?
> 
> Thank you.


100-200%, whatever the market will bear.


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## J F (Dec 3, 2005)

We usually just charge half of what the sub charges us, but we make it up on volume.


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## NAV (Sep 5, 2008)

Don't ask bwalley how to markup - he has a little trouble in the math department.


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## SDC (Jan 12, 2009)

J F said:


> We usually just charge half of what the sub charges us, but we make it up on volume.


:thumbup:

I agree, do twice as much work, for half the $ and come out even:clap:


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## Titodbuilder (Feb 6, 2009)

I understand about having fun and having a good sense of humor and will I will be the first to laught at something, but do you guys have anything to say on the subject aside from the 1st grade humor? I'll even take and maybe even snicker at some of the post if there is a morsel of reality inserted be tween the yuk-yuks. 

I'll just assume it is the way I posted as many have been very helpful with other questions in this very forum. 

Cheers


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## rbsremodeling (Nov 12, 2007)

Titodbuilder said:


> I understand about having fun and having a good sense of humor and will I will be the first to laught at something, but do you guys have anything to say on the subject aside from the 1st grade humor? I'll even take and maybe even snicker at some of the post if there is a morsel of reality inserted be tween the yuk-yuks.
> 
> I'll just assume it is the way I posted as many have been very helpful with other questions in this very forum.
> 
> Cheers


There is no rule of thumb. It varies from contractor to contractor based on your overhead and salary requirements etc.

You basically were given the answer in the last thread. What has changed since then? you listed your overhead and salary requirements.

So multiply your job by that markup number according to the amount of jobs you have going on and the length of the projec

Thats it, no mystery. You adjust the markup as you gain more experience on how the job, employees and customers react.


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## bwalley (Jan 7, 2009)

NAV said:


> Don't ask bwalley how to markup - he has a little trouble in the math department.


 
You are the moron who can't do basic math.


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## Cdat (Apr 18, 2007)

Depends on cost and time. A medallion I make I'll start rate at 1200 dollars and go up from there. Materials? Usually under 100 bucks. Time? Depends on if it is scrolled, laser or cut another way. Time to install? 2 hours max. It is whatever your customers are willing to pay.

Market dictates.


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## J F (Dec 3, 2005)

If 1 person each says: 0% 10% 30% 50% 67%....what can you take away from that? 

It's going to be all over the board depending on a LOT of different factors....add to that that a lot of us don't like "dropping our drawers" in a public forum, as well as how many times it gets asked, ....well, you get the idea...a lot of "comedy" ensues...


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## dubz (Sep 8, 2008)

I'm pretty sure around here it's listed as 15%, and the hourly rate on the carpentry end is the thing that is adjusted. The guys who can sell, get the bigger jobs and have bigger overhead are able to get a higher rate obviously.


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## dubz (Sep 8, 2008)

I make like tree-fiddy


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## Titodbuilder (Feb 6, 2009)

Thanks RBS, I know the answer and can do the math. I thought there might be something I am missing because when I ran my latest bid by my lead foreman he authoritatively told me I was too high, and again authoritatively spewed out some percentages associated with work that was subbed out and informed me that I was too high on my bid. I went back and checked my numbers and I had not missed anything apparent major. So, I though about the fact he seemed to know some general percentages and perhaps I was missing something. I have no field experience; hence, my question on this thread. 

It sounds like he was full of it and I should go with what makes business sense not what he so authoritatively says is the "industry norm" that sounds like it does not exist.

*Follow up question:* Are subbed quotes treated the same as labor and material for calculation purposes? In other words, if I sub a large part of a project (say a large patio) do I still calculate the cost of that section as if it were my time and labor and apply the same overhead costs as the work performed by employees with our material?


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## Titodbuilder (Feb 6, 2009)

BTW - I am sorry for asking silly questions guys. I belong to one other forum having to do with travel and I know what you mean. I think I am asking the equivalent to "Is there a ferry to Cuba" question, where everyone piles on and has fun with it. There is a lot of stuff in old posts here and I have started going through them...bear wioth me and the stupid questions will stop soon. 

Cheers


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## Winchester (Jun 29, 2008)

Titodbuilder said:


> *Follow up question:* Are subbed quotes treated the same as labor and material for calculation purposes? In other words, if I sub a large part of a project (say a large patio) do I still calculate the cost of that section as if it were my time and labor and apply the same overhead costs as the work performed by employees with our material?


If you are subbing out jobs they should supply their own materials and have their own employees. Why would you act as if they weren't?


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## Titodbuilder (Feb 6, 2009)

I understand they are supplying everything, so how would I assign markup/profit and overhead when it comes to my overall sales price for that particular part of the job? If I count the sub's price as labor and material and assign the overall overhead and profit then the selling price for this part becomes too high. I think my dumb ass is complicating this too much, but......


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## rbsremodeling (Nov 12, 2007)

Titodbuilder said:


> I understand they are supplying everything, so how would I assign markup/profit and overhead when it comes to my overall sales price for that particular part of the job? If I count the sub's price as labor and material and assign the overall overhead and profit then the selling price for this part becomes too high. I think my dumb ass is complicating this too much, but......


You mark it up as you would any other cost. You have your overhead.

Sub cost are the same as labor and material costs to me. I just add my markup as across the board.


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## Winchester (Jun 29, 2008)

I calculate my mark-up and overhead mostly in my labour. Materials and subs mark-up are like a bonus. Actually, they usually make up for me miscalculating or underestimating something.


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## Aggie67 (Aug 28, 2008)

rbsremodeling said:


> Sub cost are the same as labor and material costs to me. I just add my markup as across the board.


Amen.


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## dubz (Sep 8, 2008)

Winchester said:


> I calculate my mark-up and overhead mostly in my labour. Materials and subs mark-up are like a bonus. Actually, they usually make up for me miscalculating or underestimating something.


That's exactly how it is for me. I've kind of been behind the eight ball all these years in my pricing I'm learning from this site.


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## Titodbuilder (Feb 6, 2009)

But if the sub has their cost of labor and material and markup and overhead before he gives you a price then you take it and do the same again with markup and overhead would that not jump the selling price for that aspect of the job to a very high level? If the client asks you to break up your quote then the section that is subbed out seems way off because if has a double dosage of overhead and markup. Am I not thinking straight?


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## Larry D. (Feb 18, 2009)

Titobbuilder,

First off "the only stupid question is the question never asked" remember that. as far as mark ups 10-15% for materials and subs 20-25%. In the long run after all the numbers are in, you'll see that the customer will see that your not ripping them offby over bidding and The number will ( for you) be justifyed ( no guilt) Good luck. :thumbsup:


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## Larry D. (Feb 18, 2009)

First off "the only stupid question is the question never asked" remember that. as far as mark ups 10-15% for materials and subs 20-25%. In the long run after all the numbers are in, you'll see that the customer will see that your not ripping them offby over bidding and The number will ( for you) be justifyed ( no guilt) Good luck. :thumbsup:


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## Winchester (Jun 29, 2008)

If you don't mark it up what's the point in you going through all the effort of finding a sub, scheduling the sub, and paying the sub out of your own pocket? If you don't mark it up you're donating your time and money.

If they don't want to pay for your subs through you, let them be their own general and go find someone who needs one.


I don't know about you, but I run a business, not a charity.


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## J F (Dec 3, 2005)

Who is ultimately going to be responsible for the sub's work? Let's say the sub only finishes 50% of the work...who's the h/o going to be looking at?


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## Cdat (Apr 18, 2007)

Larry D. said:


> First off "the only stupid question is the question never asked" remember that.


No, you got it wrong:
There are no stupid questions, but there are a *LOT* of inquisitive idiots.:thumbsup:


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## OCRS (Apr 29, 2008)

Titodbuilder said:


> But if the sub has their cost of labor and material and markup and overhead before he gives you a price then you take it and do the same again with markup and overhead would that not jump the selling price for that aspect of the job to a very high level? If the client asks you to break up your quote then the section that is subbed out seems way off because if has a double dosage of overhead and markup. Am I not thinking straight?


It sounds like you might be more comfortable with a cost + arrangement. Look at it this way. The HO has asked you to arrange, oversee, and pay for all subs. What will you charge for this service?


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## Mellison (Aug 3, 2008)

Winchester said:


> If you don't mark it up what's the point in you going through all the effort of finding a sub, scheduling the sub, and paying the sub out of your own pocket? If you don't mark it up you're donating your time and money.
> 
> If they don't want to pay for your subs through you, let them be their own general and go find someone who needs one.
> 
> ...


Let's not forget cleaning up after them.......... I mean really cleaning up.


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## mics_54 (Oct 28, 2008)

cost plus 20%


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## Titodbuilder (Feb 6, 2009)

Thanks again fellaz!


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## Titodbuilder (Feb 6, 2009)

Thanks Fellaz!


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