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#70129 - 09/30/06 07:06 AM Material Markup
BOBELECTRIC Offline
Junior Member
Registered: 07/22/06
Posts: 7
Loc: Eighty Four,Pa.U.S.A.
What is an acceptable percentage for profit margin mark up anymore?

Bob O. 84,Pa.
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Bob O.84,Pa.15330
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#70130 - 09/30/06 07:14 AM Re: Material Markup
watthead Offline
Member
Registered: 10/13/01
Posts: 182
Loc: South Carolina
I think anywhere from 25% to 100% based on the quantity of the material.
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#70131 - 09/30/06 08:05 AM Re: Material Markup
Tiger Offline
Member
Registered: 05/04/05
Posts: 714
Loc: Crystal Lake, IL USA
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
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#70132 - 09/30/06 08:25 AM Re: Material Markup
mahlere Offline
Member
Registered: 11/17/05
Posts: 514
Loc: New Jersey
sorry tiger, you lost me. can you explain?
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#70133 - 09/30/06 10:44 AM Re: Material Markup
ShockMe77 Offline
Member
Registered: 06/11/05
Posts: 823
Loc: Rahway, New Jersey
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.
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#70134 - 09/30/06 01:58 PM Re: Material Markup
Almost Fried Offline
Member
Registered: 09/04/06
Posts: 104
Loc: Madison County, Ark. USA
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...
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#70135 - 09/30/06 10:20 PM Re: Material Markup
skipr Offline
Member
Registered: 01/03/05
Posts: 41
Loc: Huntington Beach, Ca.
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?
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#70136 - 09/30/06 11:03 PM Re: Material Markup
LK Offline
Member
Registered: 01/21/03
Posts: 1721
Loc: New Jersey
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).]
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#70137 - 10/01/06 01:49 AM Re: Material Markup
dougwells Offline


Member
Registered: 05/03/03
Posts: 1230
Loc: kamloops BC Canada
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.
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#70138 - 10/01/06 02:32 AM Re: Material Markup
iwire Offline
Moderator
Registered: 01/05/03
Posts: 4343
Loc: North Attleboro, MA USA
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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