mark up on materials

Discussion in 'Starting a Lawn Care Business' started by DiSantolandscaping, Aug 20, 2011.

  1. DiSantolandscaping

    DiSantolandscaping LawnSite Senior Member
    from Maine
    Posts: 346

    hey I mark my mulch and loam up by like 30% but i was told thats not enough. My trees i get 100% mark up just because you know how that works. but ive been hearing that people are marking up like mulch and loam by 45 to 50 % what are you guys doing. and i also just found a new guy to get loam from which would give me a 119 % mark up from where i normally get it. I normally pay 25 and charge 32.50 per yrd well this guy will sell it to me for 15 per yrd or deliver 19 a yrd.
     
  2. tajn84

    tajn84 LawnSite Member
    Posts: 83

    i get mulch for $20/yd and deliver and install for $60/yd and that is cheap for my area
     
  3. THEGOLDPRO

    THEGOLDPRO LawnSite Fanatic
    Posts: 5,223

    I don't mark up materials because i'm not a scum bag. If i get mulch for $20per yard the customer gets it for $20per yard.

    I make my money on the install not the materials. If you price a job correctly you don't have to mark materials up like a scum bag to make extra money that you didn't earn.

    In my opinion people who mark materials up are thieves, And scum bags, That's just my opinion tho. i'm sure the scum bags will come on here and defend them selves for marking up materials for no good reason other then to rob people.
     
  4. Gilmore.Landscaping

    Gilmore.Landscaping LawnSite Senior Member
    from Ontario
    Posts: 645

    You bet I mark up materials. And you know what no one has ever complained. I usually figure out what the my trade price is and then what they charge retail and keep my markup just under retail.

    Let say soil is $18/yard and retail is $24 I will provide pricing to the client based on $22.

    I don't understand how people can put on huge mark ups on items.... why wouldn't the homeowner just buy it themselves and have you install it?
     
  5. THEGOLDPRO

    THEGOLDPRO LawnSite Fanatic
    Posts: 5,223

    Thats what im getting at. If your just marking the price up a few bucks above your cost thats whatever but when people say they mark materials up 40-50% it makes me believe they are scumbags and thieves.

    Do they really believe the homeowners are that dumb that they cant figure out what materials cost??? You really think homeowners think mulch costs $50per yard?

    I find that when i'm honest with the homeowners and give them the same price i pay on materials they appreciate knowing im not robbing them and giving them a good deal. This in turn keeps them coming back year after year after year, and also referring more people to me because they know im not a scum bag.
     
  6. tajn84

    tajn84 LawnSite Member
    Posts: 83

    I don't mark up my materials i get mulch for $20/yd and deliver and install for $40/yd for a total of $60/yd. I try to keep my prices around the retail prices as best as I can.
     
  7. ny scaper

    ny scaper LawnSite Member
    Posts: 171

    I agree 100%. I get mulch extremely cheap. Its not the greatest stuff, but its clean and I've never had a customer complain. I physically show them what I can get them for cheap if they want. It costs 1/4 of what most places are selling mulch for. I am upfront with the customer and dont mark it up at all. I still get mine in the end and they think they are getting a deal on the mulch which they are. WIN -WIN
     
    Last edited: Aug 24, 2011
  8. masonenterprises

    masonenterprises LawnSite Member
    Posts: 61

    I won't mark up materials either, but to think anyone who does is a dirtbag? Electricians, automotive mechanics, auto body, plumbers, irrigation installers. All of these trades mark up materials usually somewhere between 20 and 40%. So why would it be so scandolous for a LCO to do the same? Customers can go to home depot and buy light fixtures, plumbing fixtures, sprinkler heads, whatever they need. Yet when calling the professionals to install them, they will pay whatever is asked and it is almost always marked up. Automotive field is the worse. Marking parts up to 40% and then some! If you have a mower or truck repaired, you must know your getting "robbed" on parts cost.
     
    Last edited: Aug 24, 2011
  9. ArenaLandscaping

    ArenaLandscaping LawnSite Member
    Posts: 230

    I agree , to disagree with marking up material. I have been going and doing business with the same nursery for the last 12 years and not only do I get my "wholesale" discount, I also get an additional 20% off anything I purchase.

    If a homeowner goes to the same nursery, they will pay "retail" for the plant. I do not see what the problem is with charging the retail price.

    The nursery tells me what the retail is. They even encourage charging the retail price. They told me it would be stupid and a loss not to.

    Also, if you are picking up any kind of material for free and not marking it up a little. Your losing money!! Wear and tear, labor costs, fuel, time, time, time !!!!!

    Most of my customers know that there is a small mark up with the materials for the job. Anybody who is in business marks up materials. That is why your getting it at wholesale.
     
  10. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,153

    Wow, thats all I can say is Wow. Let me guess , you gentleman are also of the school of thought that you dont need to get paid to do the estimates on jobs you dont get either right?
     

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