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greenmonster304
06-02-2012, 09:42 PM
when doing large residential systems with dinky pipe I have no problem marking material up 100% but typically the total cost of the material to me is at the most 5 to 10 thousand. I am putting together the bid for this farm job and I have a mile 6" and 4" pvc, 6" ductile iron gate valves, and flanged fittings. the material costs to me are over $30,000. Do people get away with doubling numbers like that?

Mike Leary
06-02-2012, 10:00 PM
when doing large residential systems with dinky pipe I have no problem marking material up 100% but typically the total cost of the material to me is at the most 5 to 10 thousand. I am putting together the bid for this farm job and I have a mile 6" and 4" pvc, 6" ductile iron gate valves, and flanged fittings. the material costs to me are over $30,000. Do people get away with doubling numbers like that?

I'd normally do 45-50% on hyper- megas.

jvanvliet
06-02-2012, 10:12 PM
On a materials list of that magnitude I add 15%. I also calculate my time for research and procurement and include that in the markup.

Wall street used to have an expression; "Bulls make money, Bears make money, but pigs get slaughtered". I wouldn't want to nick the customer to the point of being usurious, at least not if I want him to call me back and refer me to his friends and associates.

But then all our business is word of mouth.

ARGOS
06-03-2012, 12:38 PM
We mark up 15%. Which means you have to be on your material list.

But we also have mobilization fee of up to 15% which you can recover some cost.

Mike Leary
06-03-2012, 01:30 PM
Most of my megas were not bids, they contracted-out as "not to exceed" numbers, which gave me some room on percentages as the job progressed. You have to make percentages for all the time you've got into estimating, ordering, checking invoices, billing. My guys always thought I had the plush job, not. :cry:

FLCthes4:11-12
06-03-2012, 01:30 PM
I'll admit I have never done an irrigation job of that size. What I would be careful of is him price checking you to a supply house especially if you give him a detailed list. I would think that 15% would be ample to cover your research and leg work locating and ordering materials.

Mike Leary
06-03-2012, 01:42 PM
What I would be careful of is him price checking you to a supply house especially if you give him a detailed list.

Yup, it's happened to me, where the "clientdipshit" had nothing better to do than check my parts call-out on the internet. :dizzy:

Duekster
06-03-2012, 01:42 PM
15% is fair on large jobs. I wonder what type of discount you are getting over retail. I always consider what could an average consumer buy this for? That is part of doing your research....

1idejim
06-03-2012, 02:03 PM
We mark up 15%. Which means you have to be on your material list.

But we also have mobilization fee of up to 15% which you can recover some cost.

this is ag not construction so the comparisons are apples and oranges. i seriously doubt that a 30% markup will get you in the ballpark, growers are too well educated on costs. a prime example of ag costs vs. consumer cost would be propane. natural gas is going down but the consumer is paying xxx per gal. farmers here were offered propane at .85 per gal. if they can store 10,000 gals.
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ARGOS
06-03-2012, 02:14 PM
dammit. I thought this was constructionsite.com

1idejim
06-03-2012, 02:30 PM
dammit. I thought this was constructionsite.com

we need an elevator to get to your level patron. how are things in the hard hat jungle?
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greenmonster304
06-03-2012, 02:30 PM
I think I might be able to get away with a higher mark up on parts because the other guy biding I think is planing on using a backhoe to dig the trenches in which case he will be digging for a week straight. I estimated my ride on trencher could dig it in 18 hours so my labor costs will be less.

Wet_Boots
06-03-2012, 03:40 PM
Suffock County operates by different standards :p

FIMCO-MEISTER
06-03-2012, 06:51 PM
I think I might be able to get away with a higher mark up on parts because the other guy biding I think is planing on using a backhoe to dig the trenches in which case he will be digging for a week straight. I estimated my ride on trencher could dig it in 18 hours so my labor costs will be less.

Will you be able to get it deep enough without additional clean out?

greenmonster304
06-03-2012, 07:46 PM
Will you be able to get it deep enough without additional clean out?

They specified 3' of cover which isn't a problem for the Case 360.
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1idejim
06-03-2012, 07:56 PM
What about moving materials and excavating thrust blocks and craining the ductile?
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greenmonster304
06-03-2012, 08:12 PM
What about moving materials and excavating thrust blocks and craining the ductile?
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Brother has a mini ex.
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Wet_Boots
06-03-2012, 08:49 PM
we like photos

Mdirrigation
06-03-2012, 08:58 PM
Brother has a mini ex.
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Maybe the competitions brother has a trencher.

Its not the markup on parts , its your discount from the distributor , parts at list price , your discount is the profit . When I bid a job the basis is the list price of parts , not my cost .

Mike Leary
06-03-2012, 08:58 PM
craining the ductile

If I was forming a rock band, there would be the name. :rolleyes: