Do you guys mark up all the Materials that you use on a Job site?

[CleanCut5878]

if so how much do you usally mark an item up? examples Trees, shrubs, Fertilizer, Pinestraw, Mulch. Thanks any info would be appreciated

[hosejockey2002]

I don't have a percentage markup per se. Everything has an installed price, which factors in costs of obtaining, transporting and installing the product or material, as well as cleanup and disposal costs. I don't think a hard fast rule such as material costs X 3 is a good idea because there are too many variables that affect what it costs you to sell or install a product.

[garrettlawn]

Yeah we dont usually mark up mulch at ALL!!!! Come on man if you dont have any idea of this you are in the wrong business. I mean if you want to move to Jackson, TN we can give you a job making more than you would laying mulch for nothing!

[Precision Lawns]

come on guys, he's asking if you charge the customer more for materials than what you paid for them. for instance I get mulch for say, 15 dollars but charge the customer 20 plus install. or... charge the customer full price for trees and shrubs even though I get them at a discounted rate.
I think it depends on the purpose. just mulching...no I just have in installed price say.. $50 per yard plus delivery and disposal. For Landscape installs where the customer expects a warranty and such, I charge retail for materials plus install fees, delivery, disposal, and what not.
Don't just lay into someone with a valid pricing question. it's not like he asked "how much do I charge per mow?" Give a real answer or don't answer.

[Precision Lawns]

come on guys, he's asking if you charge the customer more for materials than what you paid for them. for instance I get mulch for say, 15 dollars but charge the customer 20 plus install. or... charge the customer full price for trees and shrubs even though I get them at a discounted rate.
I think it depends on the purpose. just mulching...no I just have in installed price say.. $50 per yard plus delivery and disposal. For Landscape installs where the customer expects a warranty and such, I charge retail for materials plus install fees, delivery, disposal, and what not.
Don't just lay into someone with a valid pricing question. it's not like he asked "how much do I charge per mow?" Give a real answer or don't answer.

[Precision Lawns]

sorry about posting twice.

[lawn guy1350]

come on guys, he's asking if you charge the customer more for materials than what you paid for them. for instance I get mulch for say, 15 dollars but charge the customer 20 plus install. or... charge the customer full price for trees and shrubs even though I get them at a discounted rate.
I think it depends on the purpose. just mulching...no I just have in installed price say.. $50 per yard plus delivery and disposal. For Landscape installs where the customer expects a warranty and such, I charge retail for materials plus install fees, delivery, disposal, and what not.
Don't just lay into someone with a valid pricing question. it's not like he asked "how much do I charge per mow?" Give a real answer or don't answer.

exactly! from some of the questions weve had on here recently, its nice to have a good question! and this IS a good question.

[ATVracer]

I add in extra cost. You know it takes time and gas to go get the material. It has to be accounted for somewhere.

[Swampy]

yeah its under our delivery charges. We bill out with a complete break down.

Material Cost
Deliver Charge
Equipment Charge
Labor Charge
Install charge

[dcondon]

A lot of Co's in this area will mark it up 2 1/2% that includes labor unless other problems occur.

[Grits]

I mark up everything. But in the end it is included in the total installation price. I break everything down for my records, but not for anything the customer sees....unless they want it broken down. I incled the estimated price on the scope of work papers. That way the customer can look at evreything that will be done and decide if they want to pay my price for it. They don't want or need to know the cost of every little thing, usually. It doesn't really matter because the price is the price.

[garrettlawn]

Ok to answer the question fairly.. we charge anywhere from $50-75 for mulch installed completely. I show the customer what their final price is and that is about it really. We mark up weed block/grass catcher slightly I just did a job where I installed three rolls of it for $126 if that can tell you anything. (Rolls were 4x100 and we had a bit left over... but she paid for that to.) So I guess to answer your question.. Yes we do mark up 90% of the materials we use on a job.. to cover labor, costs, all that fun stuff..

[topsites]

My business license doesn't cover sales, this is a service company.

The customer pays what I paid for the stuff, I charge labor + cost of materials, which includes something for time spent picking the stuff up, for instance.

It happens to work out sometimes, for certain things (such as mulch) I can calculate the customer's final price via a $ / cu.yd. formula, where I charge $45 / cu.yd. when I paid $15 / cu.yd. for it. I suppose one could say I marked it up 3x, but it's coincidence and it doesn't work like that with most things.

[garrettlawn]

Well I guess that is what I do to I just state I mark it up though. Really whatever we end up laying it for was our labor rate I guess you could say...

[steve m]

I mark up 2 1/2 to 3 times my cost plus labor that covers time and gas getting supplies

[hackitdown]

I charge a fee for the product delivered and installed.

Here is an example. Mulch at the mulch place costs a customer $35/yd. I pay $28/yd because I buy a lot. I charge $65/yd "delivered and installed". If the question of material cost comes up, which it almost never does, I tell them that "mulch costs $35/yd these days".

It works the same way with a shrub. If a shrub at retail is $45, and if my cost is $34, then it is "delivered and installed for $80".

[FLAhaulboy]

I only charge for labor and pickup/delivery fee. I get a very nice discount at the local nursery and sod company and i TELL my clients that i pass these discounts on to them and give them all receipts proving such. yeah, i could markup but, i'm the guy they end up hiring just because i pass on the discounts!

[mow2nd]

Yep Gotta Make Every Dollar U Can Make

[Woody82986]

I don't guess I mark up the mulch I buy, but I make sure that my labor for installing the mulch reflects the extra time and money involved in procuring the mulch and getting it to the property.

[LB1234]

150%.................

[gardener]

Eyes wide open. Your in busines to make a profit, be professional, you charge for all your services and material, and time. My company, all bought wholesale (you need to find a wholesaler for all your matrial) now, Trees and Shrubs add 100% /// Flowers and Grasses, Ground covers, add 45% //// solid material, Stone, Compost, Mulch Granular Fertilizers ,45% plus a min of a $25.00 delivery charge. Also, Liquids, Synthetic add 100% //// Organic 50% to 75% there is a lot of movement in pricing Organic, so you have to be on your toes. Hourly rate (man hours) $45.00 and $48.00. Consultation for a new customer is a flat fee of $50.00 for what ever time it takes, this fee is waved if the customer hires me for their property. Furthermore if i hire a outside subcontractor for assitance or for a particular build project i pay the sub and not the customer and i incorporate a 20% administrative fee into the job. I hope this helped a little. remember, professional crews, clean trucks, job done in a timely manner and attention to detail will bring you the cream of the corp, and their friends will want to hire you. This will apply if you only mow and blow, professional appearance and a knowledgeable vocabulary. To this very day i have never advertise, just refferals. Good luck.

[Military Lawns]

Give a real answer or don't answer.[/QUOTE]

Thanks for saying that! This thread is designed to help people and give constructive advice not make fun of or criticize. While there maybe a lot of LCO's...there is still enough business to go around for everyone. Give the guy a chance....

DJ:weightlifter:

[marckxman]

You don't have to do anything your don't want to in this business.
I just do my pricing so it makes sense to me.

Sometimes that means T&M. Sometimes its by the job. Sometimes it's a combo.

What I do is give a price. I break down the scope of services in that price but not the individual line item amounts.

If they balk at the price, ask what services they want deleted and then re-bid.

This will help weed out the people who need to stick to a budget from those who just want a discount on everything before they buy.

I do not come down on my price unless the scope changes or there was a misunderstanding about the work.

[ferdinand711]

if so how much do you usally mark an item up? examples Trees, shrubs, Fertilizer, Pinestraw, Mulch. Thanks any info would be appreciated

YES SIR!
and this is how i do it.
cost of material + 25% (mark up) + cost of installation = total + 25%(profit)+tax
i get 35% off on the materials from the garden center, 35%off + 25% mark up is fine with me. I do make sure to put a foot note on my estimates that all prices includes delivery charges, one year-one time replacement warranty and tax. THIS MIGHT NOT BE THE BEST IN THE INDUSTRY NOR SHOULD BE MADE A STANDARD FORMULA BUT THIS IS HOW I DO IT, IT WORKS FINE WITH ME AND I JUST WANNA SHARE IT WITH YOU.

[NewHorizon's Land]

We dont have a percentage. We buy everything at a contractors price and charge retail for it. Then if we install it we charge a base price