What percentage do you mark up bid jobs?


#1

Just curious what some of you guys mark up on on your bid jobs. I am mainly interested in markup % for residential new construction, commercial new construction, and commercial replacement.


#2

Mark up or profit, there’s a difference. I generally divide by .60 to get a 40% profit margin. If you multiply by .40 you will not get a 40% profit margin. If I really want the job, I’ll divide by .65. If it is a really simple job with nearly zero warranty risk and we need work, I will consider dividing by .7. If that doesn’t get it done, I don’t want the work.


#3

I can flip flop the math either way so no big deal if you use Markup or Margin. Lets say Markup %, just to keep replies consistent.

40% Margin is pretty heavy on new construction?.. where you referring commercial replacement or across the board?


#4

I won’t even look at new construction, the margins are too low. We sub out roofing so it is ridiculous. The only time we’ve done new construction is when a past customer insists to the builder that we do their roof install. And then I charge my rate, take it or leave it.

We do very little commercial work.