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Mark Up

Discussion in 'Hardscaping' started by P.L., Oct 10, 2007.

  1. P.L.

    P.L. LawnSite Member
    from USA
    Messages: 68

    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.
  2. Edgewater

    Edgewater LawnSite Senior Member
    Messages: 457

    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.
  3. cgland

    cgland LawnSite Bronze Member
    Messages: 1,929

    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.

  4. tthomass

    tthomass LawnSite Gold Member
    from N. VA
    Messages: 3,498

    When preparing an estimate always 'mark up' a little to cover yourself.

    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.
  5. Mike33

    Mike33 LawnSite Bronze Member
    Messages: 1,649

    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.
  6. P.L.

    P.L. LawnSite Member
    from USA
    Messages: 68

    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?
  7. Mike33

    Mike33 LawnSite Bronze Member
    Messages: 1,649

    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.
  8. kootoomootoo

    kootoomootoo LawnSite Platinum Member
    Messages: 4,369

    "I like the idea of charging retail for items bought at wholesale"

    Now there is an idea. I might try it.
  9. LB1234

    LB1234 LawnSite Gold Member
    Messages: 3,208

    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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