Material markups


#1

How much do people typically markup materials and why? This a commercial tactic? I’ve never told a customer how much the materials would cost in my life unless they bring it up and guess some ridiculously low number out of thin air. I don’t want to work for anyone that wants to know how much I’m making anyhow, they should be more worried about my competence and what they are getting for their money in my opinion. Just curious and thought I’d throw that out there


#2

Hi,

We do not mark up materials. We mark up the whole job after everything is figured. Materials, labor, overhead [there is a lot in this figure office staff, salesman, my pay, trucks, office, gas, fixing the trucks, tools…] Then the profit gets added.


#3

Well Sev you asked for it so i will come to prey. Marking up price is normal in this business i use around a 50% total markup. As far as letting the customer know the pricing. Only when it is last resort to make the sale do i do a side by side comparison. Where labor and materials with mark up are shown. I basically brake it down to the ridiculious when it becomes a price thing. Mind you im never the loest or middle guy in the bids i normally sit in the high area around 240 a square in my area where 180 is average. Now some here might think that im wrong showing the price of materials but hey being honest is part of this job also and if there is a 1000.00 dollar difference between me and the other guy and i have no choice but to show the differences then i think it does not matter. Then i have a series of closes that i use to try and gain the business. Mind you i dont see every lead that walks thru the door, i pre-qualify them or i give it to the owner to deal with.i see about 40 to 50% of what leads come thru the door. Sorry i have rambled enough. Hope this helps you out sev.


#4

I do like LEfty.

Who cares if they know? If they want to look through the entire job costing, I let them see it. They are usually surprised at how little we actually profit from every job.