Originally Posted by knox gsl
Is it really normal to only markup 15%? I markup 60% on small projects and 50% on larger. We get contractor pricing at our suppliers which leaves the customer's price close to retail while still making money.
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I was just using that as an example. It really depends on what you are buying and who you are buying it from. If you buy mulch often for example from one supplier, you may be able to get a significant discount of let's say $12 per cubic yard for double shredded, treated dark mulch. If the client is accustomed to seeing/paying $20 or more for the same product, then you are not out of line charging as much as 50%+ for mark-up. It truly is about buying power.
The problem is the internet more than anything. If you think about it, 20 years ago, consumers had no idea what goods in this industry cost. Now with the internet, they can lok things up (incorrectly usually) and assume they know what things should cost. The Home Depots of the world don't help either. A consumer assumes that "grass seed is grass seed" and if they see a Penn State mixture of seed on the shelf at Home Depot for $20, they assume all seed is equal.
Bottom line, the better prices you can negotiate with your vendors, the more you can mark up your products.