Generally Speaking - How Much Do You Mark Up A Sub/material?

Titodbuilder

Is there a rule of thumb as to how much one should mark up a sub's job? How about material?

Thank you.

Winchester

No rules for any fingers.

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Ryan

bwalley

100-200%, whatever the market will bear.

J F

We usually just charge half of what the sub charges us, but we make it up on volume.

NAV

Don't ask bwalley how to markup - he has a little trouble in the math department.

SDC

I agree, do twice as much work, for half the $ and come out even

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Titodbuilder

I understand about having fun and having a good sense of humor and will I will be the first to laught at something, but do you guys have anything to say on the subject aside from the 1st grade humor? I'll even take and maybe even snicker at some of the post if there is a morsel of reality inserted be tween the yuk-yuks.

I'll just assume it is the way I posted as many have been very helpful with other questions in this very forum.

Cheers

rbsremodeling

There is no rule of thumb. It varies from contractor to contractor based on your overhead and salary requirements etc.

You basically were given the answer in the last thread. What has changed since then? you listed your overhead and salary requirements.

So multiply your job by that markup number according to the amount of jobs you have going on and the length of the projec

Thats it, no mystery. You adjust the markup as you gain more experience on how the job, employees and customers react.

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bwalley

You are the moron who can't do basic math.

Cdat

Depends on cost and time. A medallion I make I'll start rate at 1200 dollars and go up from there. Materials? Usually under 100 bucks. Time? Depends on if it is scrolled, laser or cut another way. Time to install? 2 hours max. It is whatever your customers are willing to pay.

Market dictates.

J F

If 1 person each says: 0% 10% 30% 50% 67%....what can you take away from that?

It's going to be all over the board depending on a LOT of different factors....add to that that a lot of us don't like "dropping our drawers" in a public forum, as well as how many times it gets asked, ....well, you get the idea...a lot of "comedy" ensues...

dubz

I'm pretty sure around here it's listed as 15%, and the hourly rate on the carpentry end is the thing that is adjusted. The guys who can sell, get the bigger jobs and have bigger overhead are able to get a higher rate obviously.

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dubz

I make like tree-fiddy

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Titodbuilder

Thanks RBS, I know the answer and can do the math. I thought there might be something I am missing because when I ran my latest bid by my lead foreman he authoritatively told me I was too high, and again authoritatively spewed out some percentages associated with work that was subbed out and informed me that I was too high on my bid. I went back and checked my numbers and I had not missed anything apparent major. So, I though about the fact he seemed to know some general percentages and perhaps I was missing something. I have no field experience; hence, my question on this thread.

It sounds like he was full of it and I should go with what makes business sense not what he so authoritatively says is the "industry norm" that sounds like it does not exist.

Follow up question: Are subbed quotes treated the same as labor and material for calculation purposes? In other words, if I sub a large part of a project (say a large patio) do I still calculate the cost of that section as if it were my time and labor and apply the same overhead costs as the work performed by employees with our material?

Titodbuilder

BTW - I am sorry for asking silly questions guys. I belong to one other forum having to do with travel and I know what you mean. I think I am asking the equivalent to "Is there a ferry to Cuba" question, where everyone piles on and has fun with it. There is a lot of stuff in old posts here and I have started going through them...bear wioth me and the stupid questions will stop soon.

Cheers

Winchester

If you are subbing out jobs they should supply their own materials and have their own employees. Why would you act as if they weren't?

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Ryan

Titodbuilder

I understand they are supplying everything, so how would I assign markup/profit and overhead when it comes to my overall sales price for that particular part of the job? If I count the sub's price as labor and material and assign the overall overhead and profit then the selling price for this part becomes too high. I think my dumb ass is complicating this too much, but......

rbsremodeling

You mark it up as you would any other cost. You have your overhead.

Sub cost are the same as labor and material costs to me. I just add my markup as across the board.

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Winchester

I calculate my mark-up and overhead mostly in my labour. Materials and subs mark-up are like a bonus. Actually, they usually make up for me miscalculating or underestimating something.

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Ryan

Aggie67

Amen.