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.
Re: Material Markup#70134 09/30/0603:58 PM09/30/0603:58 PM
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...
Re: Material Markup#70135 10/01/0612:20 AM10/01/0612:20 AM
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).]
Re: Material Markup#70137 10/01/0603:49 AM10/01/0603:49 AM
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.
Re: Material Markup#70138 10/01/0604:32 AM10/01/0604:32 AM