I've done a search and there are conflicting or confusing answers. When I price a job, the first thing I list is materials + markup. I then figure time for prep, coating, carving etc as a labor charge with a % at the end for profit.
Those that do it the same way as me, what is your % markup on materials.
Thanks,
Joe,
Makin Chips and Havin Fun!
Posted by Jean Shimp (Member # 198) on :
Joe, I believe the best thing to do for marking up raw materials is to double (2x) the price you paid. I have been marking up by 50% (1.5) but realized this is not enough. I say that because if we buy a 4x8 sheet of material we will typically not use the entire sheet for signs or letters. There will be drop or wasted material that ends up being trashed. If I only charge for the material used in the sign then I lose money on the drop material. By doubling my cost I can make sure I'm not losing money. If I am reselling a retail item such as a "Stop" sign I will typicall mark up by 1.5 or 50%. If I am subbing out labor such as an installation I will mark up by 20%.
Posted by Cody Reich (Member # 8052) on :
I do it kinda backwards. I look at a job and think about how much I want / need to make in profit to do the job. Then I add in the supplies and material plus an hourly rate to get a final cost.
The % markup has gotten me in trouble a few times. It works well for the average type job, but when big or small jobs come along it seems to miss the mark.
Posted by Checkers (Member # 63) on :
Hiya Joe,
EstiMate makes life a lot easier
My mark-up on materials really depends on the job. However, I typically figure a 40% gross profit. The lowest I will do is a 30% margin and I'll sometimes double or triple it.
So, if your materials cost $100, you need to divide the $100 by 0.6 to get a 40% profit margin and the materials alone would sell for about $167.
Havin' fun,
Checkers
Posted by Joe Cieslowski (Member # 2429) on :
Thanks everyone!!!
Jean, I figure in the drops as part of the material cost.....39" of HDU I figure at 4'etc.
I won't charge for a whole sheet if I only use 4'. I certainly allow for a little wiggle room on this point. At the same time, that 4' cutoff may stick around for a while so the associated cost is factored into my material charge.
Cody, I do the same as you but I do it after I figure in costs.
Checkers, (except for the use of estimate) my process is similar to yours.
Thanks everybody!
Joe,
Makin Chips and Havin Fun!
Posted by Joe Cieslowski (Member # 2429) on :
Thanks everyone!!!
Jean, I figure in the drops as part of the material cost.....39" of HDU I figure at 4'etc.
I won't charge for a whole sheet if I only use 4'. I certainly allow for a little wiggle room on this point. At the same time, that 4' cutoff may stick around for a while so the associated cost is factored into my material charge.
Cody, I do the same as you but I do it after I figure in costs.
Checkers, (except for the use of estimate) my process is similar to yours.
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