Does anyone estimate using the cost plus 25% model? Just curious if its a good or bad idea and whether or not you would still mark up your material costs before adding the 25%. Sounds silly I know but then there's the "cost" part that throws me off.
On the subject of mark-up, how do you determine what percentage to mark-up? Do you decrease or increase that mark-up depending on the original cost of the material?
Just some questions I have been pondering for awhile. I typically estimate the total cost of materials I'll need for a job and mark each item up a percentage. Then I estimate my man-hours, then my overhead cost (determined by the number of man-hours) and add any profit I feel is necessary.
If anyone has feedback I would love it.
Thanks,
Mike
