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Marking up material price

Discussion in 'Bidding, Estimating and Pricing' started by FitzRightMowingService, Mar 26, 2020.

  1. FitzRightMowingService

    FitzRightMowingService LawnSite Senior Member
    Messages: 360

    I'm trying to understand the whole markup thing. Whole numbers I understand and when something is on sale that I can do.

    How do you go about marking up $53.54 do you just add on 10% - 20% no matter the number?
     
  2. knox gsl

    knox gsl LawnSite Fanatic
    Messages: 7,305

    10-20% I'd go broke. I add 80-120% typically. I rarely pay retail for materials but this is part of how I earn a living and is no different than a plumber, auto mechanic or electrician.
     
    Jeff@diyokc likes this.
  3. Mowing monkey.

    Mowing monkey. LawnSite Bronze Member
    Messages: 1,007

    You’re adding that kind of markup plus labor?
     
  4. OP
    OP
    FitzRightMowingService

    FitzRightMowingService LawnSite Senior Member
    Messages: 360

    Im new to the whole markup thing but 80 - 120% seems like a lot. Care to give a break down?
     
  5. knox gsl

    knox gsl LawnSite Fanatic
    Messages: 7,305

    Yes sir!
     
    Mdirrigation likes this.
  6. Mowing monkey.

    Mowing monkey. LawnSite Bronze Member
    Messages: 1,007

    How much material are you dealing with? I’ve bought thousands of dollars of materials just this week. There’s no way I could mark up that much.
     
  7. knox gsl

    knox gsl LawnSite Fanatic
    Messages: 7,305

    Say I go buy 30 shrubs at $15/ pot my cost. Retail they are $22/ pot. Now I want to add 80% markup to cover my time, knowledge and selection of materials. I take $15x1.8x30 to come up with a total of $810 for plant materials. I usually need a little compost and that's $3/ bag so I'll charge 120% on stuff like this that I buy in bulk and have on hand. $3x2x2.2=$13.20 in compost. Now these plants won't dig their own holes so let's assume this will take 4 hours to dig and install. 4x$60=$240. I don't know if y'all have this issue but I always seem to have a bunch of soil left over after planting shrubs so I then tack on $25 for soil/debris removal $1088.20 total for the job. Now the customer was seeing the plants for $22/ pot and that's $660 plus $50 for the delivery from the nursery to a total of $710. Most of the people I work for don't think twice about me making $100 to take care of that for them.
     
  8. knox gsl

    knox gsl LawnSite Fanatic
    Messages: 7,305

    Solo operation. In the spring and fall I can spend $1200 a week in materials on average but not much in the summer or winter, I travel a good bit then. I don't do any mowing, just landscape and gardening.
     
  9. OP
    OP
    FitzRightMowingService

    FitzRightMowingService LawnSite Senior Member
    Messages: 360

    Thank you this is the kind of break down I was looking for.
     
  10. Johnshandyman

    Johnshandyman LawnSite Member
    Messages: 16

    I mark up 20-30%. I just completed a fairly sizable install where the customer was able to see the retail price on the pots and was thrilled because his price from me was lower. He added an additional 200 plant install for next week because of it. I had everything marked up 30%. Total job was 3700.00 in materials so I tagged on 1100.00 dollars.
     

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