mark up question

Discussion in 'Irrigation' started by greenmonster304, Jun 2, 2012.

  1. greenmonster304

    greenmonster304 LawnSite Gold Member
    Posts: 3,078

    when doing large residential systems with dinky pipe I have no problem marking material up 100% but typically the total cost of the material to me is at the most 5 to 10 thousand. I am putting together the bid for this farm job and I have a mile 6" and 4" pvc, 6" ductile iron gate valves, and flanged fittings. the material costs to me are over $30,000. Do people get away with doubling numbers like that?
     
  2. Mike Leary

    Mike Leary LawnSite Fanatic
    Posts: 21,912

    I'd normally do 45-50% on hyper- megas.
     
  3. jvanvliet

    jvanvliet LawnSite Gold Member
    Posts: 3,939

    On a materials list of that magnitude I add 15%. I also calculate my time for research and procurement and include that in the markup.

    Wall street used to have an expression; "Bulls make money, Bears make money, but pigs get slaughtered". I wouldn't want to nick the customer to the point of being usurious, at least not if I want him to call me back and refer me to his friends and associates.

    But then all our business is word of mouth.
     
  4. ARGOS

    ARGOS LawnSite Silver Member
    Posts: 2,808

    We mark up 15%. Which means you have to be on your material list.

    But we also have mobilization fee of up to 15% which you can recover some cost.
     
  5. Mike Leary

    Mike Leary LawnSite Fanatic
    Posts: 21,912

    Most of my megas were not bids, they contracted-out as "not to exceed" numbers, which gave me some room on percentages as the job progressed. You have to make percentages for all the time you've got into estimating, ordering, checking invoices, billing. My guys always thought I had the plush job, not. :cry:
     
  6. FLCthes4:11-12

    FLCthes4:11-12 LawnSite Senior Member
    Posts: 284

    I'll admit I have never done an irrigation job of that size. What I would be careful of is him price checking you to a supply house especially if you give him a detailed list. I would think that 15% would be ample to cover your research and leg work locating and ordering materials.
     
  7. Mike Leary

    Mike Leary LawnSite Fanatic
    Posts: 21,912

    Yup, it's happened to me, where the "clientdipshit" had nothing better to do than check my parts call-out on the internet. :dizzy:
     
  8. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    15% is fair on large jobs. I wonder what type of discount you are getting over retail. I always consider what could an average consumer buy this for? That is part of doing your research....
     
  9. 1idejim

    1idejim LawnSite Fanatic
    Posts: 9,339

    this is ag not construction so the comparisons are apples and oranges. i seriously doubt that a 30% markup will get you in the ballpark, growers are too well educated on costs. a prime example of ag costs vs. consumer cost would be propane. natural gas is going down but the consumer is paying xxx per gal. farmers here were offered propane at .85 per gal. if they can store 10,000 gals.
    Posted via Mobile Device
     
  10. ARGOS

    ARGOS LawnSite Silver Member
    Posts: 2,808

    dammit. I thought this was constructionsite.com
     

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