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#70129 09/30/06 10:06 AM
Joined: Jul 2006
Posts: 7
B
Junior Member
What is an acceptable percentage for profit margin mark up anymore?

Bob O. 84,Pa.


Bob O.84,Pa.15330
#70130 09/30/06 10:14 AM
Joined: Oct 2001
Posts: 172
W
Member
I think anywhere from 25% to 100% based on the quantity of the material.

#70131 09/30/06 11:05 AM
Joined: May 2005
Posts: 706
T
Member
Lately I've been focusing more on bottom line profit than material markup. It's the total profit of the job that will help me reach my financial goals. I find material markup time-consuming & tedious.

Dave

#70132 09/30/06 11:25 AM
Joined: Nov 2005
Posts: 507
M
Member
sorry tiger, you lost me. can you explain?

#70133 09/30/06 01:44 PM
Joined: Jun 2005
Posts: 821
S
Member
I'd say at least 75% on everyday Mr. and Mrs. Jones type jobs. I say at least that because I know others mark-up way more than that and they have every right to do that. I think it's very reasonable to pay $35 for a specific light bulb and charge the customer $100.00. This IMO is what covers the cost of knowing where to get the bulb in the first place and the time it takes to go get it and buy it. This is something a lot of guys do not consider. How do I know this? I used to work for them.

On the flip side, if materials are costing $100,000.00, I dont think it's reasonable to sell it back at $200,000.00. Thats just my opinion.

#70134 09/30/06 04:58 PM
Joined: Sep 2006
Posts: 98
A
Member
A lot of shops in my area charge 100%, I don't. They drive nicer trucks than me... I let some of my customers get the materials themselves, that's their discount for being friends and repeat customers. I generally add tax and a 40% MARGIN, not markup.(mat'l. cost+sales tax divided by .6= profit as a percentage of sale price.) But they all drive better trucks than me...

#70135 10/01/06 01:20 AM
Joined: Jan 2005
Posts: 39
S
Member
I can't believe what i'm hearing. You can get away with a markup that large? I never under any circumstances go over 30%.And that's to industrial customers. How do you people sleep at night?

#70136 10/01/06 02:03 AM
Joined: Jan 2003
Posts: 1,429
L
LK Offline
Member
They may sleep well, it depends on the type of work they are doing, if they are doing residential, or commercial service calls, then 100% may what they need to support both truck stock, and replacement inventory costs, do you value your time, it takes to order, and move stock, or do inventory, how do you cover these costs, unless you have sufficent mark-up.

Mark-up can differ with how you cost a job, or how you inventory, material sales, should contribute to your overall profit, how much profit do you need to stay in business, may be a good guide.



[This message has been edited by LK (edited 10-01-2006).]

#70137 10/01/06 04:49 AM
Joined: May 2003
Posts: 1,158
Member
hmmm when i used to do,plumbing I always got 100 percent mark up IE my costs Xs 2 how come electricians are not allowed to get the same mark up .... BTW hvac guys get the same mark up again why
I think I know the answer but would like to hear others opinions why electricians cant get this mark up.

#70138 10/01/06 05:32 AM
Joined: Jan 2003
Posts: 4,391
I
Moderator
Quote
How do you people sleep at night?

Probably quite well and in a nice house.

I am sure they are not putting a gun to the customers head, the customer can always say no and find someone else.

We had a large concert venue for a customer, they felt we charged to much and found someone else.

I found their view odd as when I had to be on site during a concert a order of fries and a coke cost me $9.00. What do you think the mark up on that was?


Bob Badger
Construction & Maintenance Electrician
Massachusetts
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