I have a regular customer who has asked me for an electrical sign, which I do not do. There is a wholesale sign co. not far from here which will do everything (fabrication, graphics, install). I am responsible for obtaining permits and suppling the artwork, very capable of both of those items. My time would be around 3 hours total. What is a fair mark-up.
Posted by John Arnott (Member # 215) on :
This is a high ticket item. I would markup 20 to 40 percent, plus your time.
Posted by Checkers (Member # 63) on :
I'm with John, Thom, at least 25% though. I'm normally marking up my costs by 35% or 40% (÷ by .6 or .65) here in Harrisburg. Assuming you charged seperately for your time, I would at least double the time you plan to spend on the project. 3 hours seems to be low to coordinate all the details - get permits, locate the final position of the sign, supervise the installation, etc., and keep everyone happy.
Havin' fun,
Checkers
Posted by Dave Draper (Member # 102) on :
The "old school" thinking was "buy for $1.00 sell for $2.00"
Unfortunately, that won't work on every customer these days.
40% is fair
...... but your competition will do it for -30% and THINK they can stay in business! Posted by Dusty Campbell (Member # 4601) on :
If you do not do electrical signs then why are you doing one? I'm half-kidding.
What kind of sign specifically?
Posted by Joe Endicott (Member # 628) on :
Yep...40% plus time. And keep track of that time, it's amazing how much time you spend on a sign you don't make.
Posted by Denis de Leon (Member # 5844) on :
Thom,
A couple of clarifications for you:
To calculate a markup of 40% multipy your costs by 1.4.
To calculate a gross profit margin of 40% divide your costs by .60
They are different so don't confuse them by using markup when you really mean gross profit margin and vice-versa.
I'm not an electrical type of sign either and if I were doing this job I would be very, very careful of my margins on this job so that I could mitigate my risk.
It's tempting to take the job but one "big" mistake on an electrical job could wind up costing you in $$$.
Of course, as one of the others have said this all depends on what you mean by "electrical".
- denis
Posted by thom miller (Member # 1845) on :
Thanks for the help, this sign is a two sided 6' x 10' internally lit sign with 4 individual acrylic panels per side. 16' overall height. I would not consider the job if it were not for the wholesale sign shop being able to do everything. I have general expeience with these types of jobs in that I worked for a sign company at one time which did make these types of signs. So I'm not totally lost, I just wasn't sure if my markup should be the same on this type of job as it is for my "everyday" jobs.
![[Frown]](frown.gif)