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Old 08-17-2010, 07:45 AM
MarcSmith MarcSmith is offline
LawnSite Fanatic
Join Date: Jul 2004
Location: Washington DC
Posts: 7,238
Ne I can understand your logic.... and I can agree with it to a point... but by using your logic when we mark up materials for a job we are loosing a competitive edge to the nursery who does installs or to the larger company that has better buying power and gets lower prices...

Marking up the prices covers my costs for renting the equipment, picking it up, floating the payment on the bill and dealing with any potential down time issues..

I provided full landscape maintenance for my clients in Florida... I was very anal about not letting other landscapers on the properties I maintained. and my relationship was good enough that my clients trusted me. Routinely I would rent man lifts/bucket trucks to do palm trees as the Clients asked. I always tried to group the jobs together so to minimize the rental fees for all involved. so would it have been wise for me to save up and spend 40-50K on a bucket truck plus insurance, plus maintenance for a piece of equipment that I'd use a dozen times a year... No...

I had several large commercial properties where I subbed out the parking lot sweeping. I guess I could have spent 80K on a sweeper, but no It was smarter to sub out and markup....

by marking up equipment...yes you loose some competitive edge if your clients are bidding the job to multiple vendors...but if your clients are not bidding the job out, then you don't have the competitive edge to worry about...

when i rented a dumpster you better bet I was marking it up...but I guess I could have saved the money and bought my own dumpster, and then another 120K for a roll-off truck for the 3-4 times a year I would have used it

when you currently bid a job out which equipment you use and its cost to operate better be considered in the bid...otherwise you ARE leaving money on the table...

There are instances when its nice to rent if you don't have enough jobs to justify the expense of a new piece of equipment.

So a 250 dollar rental for the day you ad 75 bucks......and you are still short on the time it takes to arrange the rental pick it up and return it

Oh and my question was more of a thinking exercise for the OP to see what reasons he had for NOT marking it up...
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