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Old 10-10-2007, 07:35 PM
P.L. P.L. is online now
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Mark Up

I might be setting myself up by asking this question due to recent questions about rates, but I'll try anyways. What is an average mark up on materials?
I usually add 20%, but feel like this may be low. Also do you mark up all materials the same or do you have a different mark up per item? I know there is probably not set answer and it might be job specific, but a ballpark range would help me out.
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Old 10-10-2007, 08:01 PM
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Edgewater Edgewater is offline
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I charge everything at Retail. I get different discounts ranging from 25 to 60% from various suppliers, and charge retail on most, unless the volume is huge at one job.
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Old 10-10-2007, 08:22 PM
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cgland cgland is offline
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I do the same as Edge. I charge a retail price on materials and pay a discounted price. This keeps me a bit more competetive.

Chris
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Old 10-10-2007, 08:36 PM
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tthomass tthomass is offline
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When preparing an estimate always 'mark up' a little to cover yourself.

Example:
Plant material is a good one. The same plant can change prices througout the year based on where its coming from, is it in a pot, is it B&B etc.

So say you have $1,000 in plants wholesale. Charging retail or just adding 20% will cover yourself for any flex in the price. Also, something to cover your time or gas etc. Unless it is a set price product, never figure your estimate based on what the catalog from spring says when you are in teh summer or fall.
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Old 10-10-2007, 10:28 PM
Mike33 Mike33 is offline
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It also helps if 2 of them would die in a short time. You go back and replace them and your customer will love you, all along you was covered.
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Old 10-10-2007, 10:38 PM
P.L. P.L. is online now
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Thank you for the replys this helps me alot. I like the idea of charging retail for items bought at wholesale. How do you mark up items if you are forced to by them retail at a place like home depot?
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Old 10-10-2007, 11:00 PM
Mike33 Mike33 is offline
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Thats tough when they are running a special of 9.95 for a bradford pear and your charging 20.00 and they see the lowes tag on it. You could be honest and say my time of picking up and delivery.
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Old 10-10-2007, 11:56 PM
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kootoomootoo kootoomootoo is offline
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"I like the idea of charging retail for items bought at wholesale"

Now there is an idea. I might try it.
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  #9  
Old 10-11-2007, 08:00 AM
LB1234 LB1234 is offline
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For bulk materials (aggregate, sand, mulch) I usually mark up 150% over my cost. For materials like edge restraint, fabric, pavers, and the like we mark up between 120-125% of our cost. We do not mark up on delivery (if any) costs those I pass directly to the customer.

Plants are a different story. If we are providing a plant warranty we'll mark up 165-175% of our cost. However, with that said, I'm not going to mark up a $400 tree by 175% and wind up charging the customer $700 for it.
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