Job Markup

Discussion in 'Heavy Equipment & Pavement' started by bobcatexc, Jan 20, 2010.

  1. bobcatexc

    bobcatexc LawnSite Senior Member
    from IL
    Posts: 272

    What kind of markup are you guys trying to get on jobs that you bid in this slower economy. I know everybody is a little bit different with demographics and overhead. I mainly try to go after small excavating, demo work, drainage projects, driveways, etc and have played the game for years as to how much to mark up certain jobs. I usually will put 10-30% on a job depending on the time of year, schedule how easy or hard the job will be and then also if bidding for a GC keeping in mind that they will throw some on top of your numbers also. I also know that some put way less than 10% and some don't even know about mark up. Just curious what others are doing?

    Also someone just posted recently about skidsteer/mini X hourly pricing, which I try to stay away from, but still get those people. I have been trying to just charge a minimum of a half a day or a full 8hr day on those jobs, but how does everyone handle travel/mob time?
     
  2. curtisfarmer

    curtisfarmer LawnSite Senior Member
    Posts: 511

    I'll charge $100-125 per move with a 4 hr minimum. Even though I, like all, shoot for bid jobs, you cannot pass up by the hour work if it exists. I have about a 60-75% recurring client list, so Itry to keep them happy regardless of what they want.
     
  3. mrsops

    mrsops LawnSite Silver Member
    Posts: 2,879

    I dont charge for the hour over here we have never done that.. Half days or a full 8 hour day. If my operaters get to a job at 8 and finish at 10 or 11 its a half day if he finises at 2 its a full day.
     
  4. curtisfarmer

    curtisfarmer LawnSite Senior Member
    Posts: 511

    On a % markup, I shoot for 20-40% + costs.
     
  5. AWJ Services

    AWJ Services LawnSite Platinum Member
    from Ga
    Posts: 4,276

    Notr sure what you mean by markup?
    Are talking about materials?
     
  6. curtisfarmer

    curtisfarmer LawnSite Senior Member
    Posts: 511

    When I say markup I mean materials + what it would cost hourly + moves & other costs (opportunity costs included).:cry:
     
  7. Gravel Rat

    Gravel Rat LawnSite Fanatic
    Posts: 9,544

    You have to have a minimum if you have to move the equipment a long ways. If your say down the road you can give the person a deal say the job takes a hour charge for 2 hours.

    I think the only way your going to compete is try find out what your competition is charging and stay in the same ball park area. The excavation contractors here are all the same hourly rate because it is the only rate you can make a profit at. Drop any lower your loosing money simple as that.

    You get work because people know the good job you do and your work looks good it is a quality job.
     
  8. AWJ Services

    AWJ Services LawnSite Platinum Member
    from Ga
    Posts: 4,276

    You cannot do this.
    Your operating costs and ther operating costs may be different so you cannot charge the same thing.
     
  9. Gravel Rat

    Gravel Rat LawnSite Fanatic
    Posts: 9,544

    Operating costs for contractors here is almost equal they are running simillar equipment and working in the same area. It is almost a level playing field when it comes to rates.

    Trucking rates for say a tandem axle dump truck is the same accross the board. A 160 size excavator is 140 dollars per hour I think haven't kept up.

    Like I said you get jobs around here by your name or the work you do.

    You charge too much around here your done pack your bags your company is finished. The word spreads like wild fire and your out of work.

    Material costs like sand and gravel every contractor pays the same price the materials like pipe or plastic tanks well that varies. You don't mark up sand or gravel products your done what the gravel pit charges you you charge the customer. You make a little exta off the trucking but charging a customer 5-10% on gravel you just burned your bridge.

    Any pipe products or stuff you have to get shipped from out of town you can play a little bit with the prices.

    For around here what the contractors are charging is just enough to make a profit and cover expenses and right now they are not working.
     
  10. bobcatexc

    bobcatexc LawnSite Senior Member
    from IL
    Posts: 272

    I agree Curtisfarmer you still have to do hourly if you want the work on some clients, so Mrsops if your guy runs 4hrs and you charge for half a day do you do anything with charging for move in. I'd like to put mobilization cost in my hourly rate but then that drives up my price up compared to others, I just don't like the additional cost you have to tack on.

    AWJ I'm talking about marking up materials and everything that cost to complete the job like curtis said.
     

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