I know, "mark-up" can be a passionate topic. Perhaps I should clarify a few of my thoughts here.
I recognise that we all have bills to be paid, and we simply must pay them if we are to remain in business. I also recognise that our every activity has unseen costs associated with it.
Yet, no one ever won an argument with a customer. Even when you "win," you lose- the guy never need call you again, or reccomend you to others. You really don't want to leave an unhappy customer behind.
This is especially important in our trade as so much of what we do is "invisible." Heck, the very thing we control- electricity- is invisible.
The only price that matters to the customer is the bottom line- the total due. If, for taxes or some other reason you must break out a "materials" price, this price has to be something that looks reasonable to the customer. Appearances count!
Back at the office, you may have an entirely different figure for those materials- one reflecting your 'overhead' costs. Such a figure is of value, as it helps you manage your business- but that's not really of interest to the customer.
In the job I recently did, the customer, in effect, paid twice for the installation- once to me, and once as part of the other guy's material charge. Yet, the customer was willing to do this, as the pricing practices of the other guy had undermined the customer's confidence in him.
In business, things like "trust" and "confidence" cannot be ignored.
