Paying For Material

 
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Old 03-24-2006, 03:29 PM   #1
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Paying For Material


Any masons out there pay for material for jobs? If you do do you mark it up? I have a contractor Im putting a bid in for and they want a price for material as well.
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Old 03-24-2006, 04:13 PM   #2
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Re: Paying For Material


Not a mason, but will you be handling all the logistics involved with procurement and delivery?

If so, hell Ya you should mark it up!

None of the work we do is FREE, kinda.

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Old 03-24-2006, 04:35 PM   #3
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Re: Paying For Material


LOL! Thats what I figured. Thanks!
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Old 03-24-2006, 04:59 PM   #4
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Re: Paying For Material


Quote:
Originally Posted by 6stringmason
Any masons out there pay for material for jobs? If you do do you mark it up? I have a contractor Im putting a bid in for and they want a price for material as well.
6 string,
If you're shelling out monies or putting materials on an account which you will be billed for at the end of the month of course you're entitled to mark-up on materials.
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Old 03-24-2006, 05:01 PM   #5
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Re: Paying For Material


6,

We always supply the material. We always markup for overhead and for profit on everything. Special order stone or other material is marked up more than other material. I know many people who don't charge on top of expensive material to get the job. We don't think that works.

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Old 03-24-2006, 05:05 PM   #6
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Re: Paying For Material


Quote:
Originally Posted by jmic
6 string,
If you're shelling out monies or putting materials on an account which you will be billed for at the end of the month of course you're entitled to mark-up on materials.
Indeed
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Old 03-24-2006, 07:12 PM   #7
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Re: Paying For Material


Quote:
6 string,
If you're shelling out monies or putting materials on an account which you will be billed for at the end of the month of course you're entitled to mark-up on materials.
that the way i figure it.if they are going to use my money,and i have to take the time to figure how much material is needed and the have to order it,then i am marking it up.i will also include in my bid,that when material is delivered on the job site,i get a draw.now most time i dont use that draw to pay for the materials right away,but will use their money for a couple weeks.using a customers money is cheaper than using the banks.
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Old 03-24-2006, 07:59 PM   #8
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Re: Paying For Material


Thanks for the replies guys. I marked up %10 on a 16,000 brick job. Is that normal or too much? I havent submitted the bid yet. Just got the numbers from the supplier today.
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Old 03-24-2006, 08:07 PM   #9
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Re: Paying For Material


I'd go with 20%
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Old 03-24-2006, 08:49 PM   #10
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Re: Paying For Material


6,

Why are you using 10% and what does that 10% mean?

Everyone here wants you to make money.

You need to know why you do things.

Did you sit down and go 16,000 brick @ .52 = $8320. so I'll add $832.0 so I'll charge $9152.00? I don't know if you have a sales tax or not thats another consideration.

Now look at $9152.00 is $832. 10% of $9152.?

Is it mark up % or percentage that you want to achieve, they're different. If you want to say I made 10% on the sale of the brick you need to use a different % to mark up to get that 10%. Is that 10% profit or do you need it to pay overhead costs?

From the different posts that you have had about costs and work you should put the time in to learn the business of business.

There are many people who have gone through what you are going through on this site and would eagerly give advice. You should be posting "what questions do I need to answer" at this point instead of looking for someone to give approval of your decisions.

I've lost an awful lot of money doing masonry work at times.

The most important thing in masonry is knowing what it costs you to do business according to good business practices. And why!

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Old 03-24-2006, 08:59 PM   #11
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Re: Paying For Material


As said before. Small items can carry as much as a 200% markup.
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Old 03-24-2006, 09:07 PM   #12
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Re: Paying For Material


I figured in sales tax. I figure %10 would be fair. Its my money I know but I dont have alot of overhead. I have a mixer, scaffolding, a trailer, a couple saws, and my plank and insurances. All if it is paid for. I have 2 employees that I pay. One mason, one tender. There wages come from puttin brick on the wall. I know where my money comes from and where it goes.. I just never bought material for a job of this size before and wanted some ideas. Maybe I worded it wrong. Im not completely ignorant to this though. If I go %20 and its too high, what happens then? I lose the bid. So I will take my "free" $1100 dollars for markin materials up %10.

edit:
Its my first bid for a new GC and dont want to chase them away. I've been after them since I started and they finally called me after seeing a showcase home I did.

edit #2:
I dont mean to sound ungrateful for all the help. Sorry if my post comes across that way. Im sure I could value from a few nightclasses in business managment.
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Last edited by 6stringmason; 03-24-2006 at 09:09 PM.
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Old 03-24-2006, 09:24 PM   #13
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Re: Paying For Material


Quote:
Originally Posted by 6stringmason
Its my first bid for a new GC and dont want to chase them away. I've been after them since I started and they finally called me after seeing a showcase home I did.
That's all you need to say. From your other posts you said you desperately want to expand, so don't worry too much about the mark-up. Land the job and get more work out him. Just don't lose money, but don't do anything that locks you into something from this job on! Don't do anything crazy like show a 10% mark up and get locked into this forever with him.

I shoot for a average 40% mark-up but my business is like oil and water compared to you.
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Old 03-24-2006, 09:24 PM   #14
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Re: Paying For Material


Quote:
Originally Posted by 6stringmason
Im sure I could value from a few nightclasses in business managment.
You and me both :-)
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Old 03-24-2006, 09:58 PM   #15
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Re: Paying For Material


If you are paying cash for the materials, or are able to pay for them without relying on the GC to meet the supplier's terms (net 30, for instance), 5-10% is reasonable. Otherwise, you carry both the risk and capitol expense, so you should charge accordingly. Regardless, as a sub you are assuming risk and should be compensated for that.
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Old 03-25-2006, 12:13 AM   #16
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Re: Paying For Material


they have business classes?
anywho,6string,dont let getting your foot in the door with this gc cost you.i did that once.i took a 10 cent a brick cut on a house,with the promise of bricking 10 more for him.the job was 160 miles from my house,but he provided a crew house and food.when i was done i was assured i was doing his other houses he had going.i came back home to my other jobs here.he called me a month later and told me he found a mexican crew who would do it for 10 less than what i wanted and unless i meet their price,he was going with them.i told him,"mama de la verga"which translates into "suck my d&%k" .that was 12 years ago,and i see him from time to time at wal mart and havent said 2 words to him.btw he is no longer building houses.screwed to many subs around.mexicans are pretty good at what they do,but you dont see alot of mexican plumbers or electrians.
and before i piss off anyone.i dont have anything againest mexicans.
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Old 03-26-2006, 12:33 PM   #17
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Re: Paying For Material


Quote:
Originally Posted by 6stringmason

edit:
Its my first bid for a new GC and dont want to chase them away. I've been after them since I started and they finally called me after seeing a showcase home I did.

Thats the rite attitude in my oppion. It could lead to more work. More is better.
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Old 03-29-2006, 12:02 PM   #18
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Re: Paying For Material


Some years ago I was working as a mechanic in a gas station owned by a husband and wife that had immigrated here from Iran to escape the Iatola komani (sp?). He was a buisness professor there and the one thing he tought me was how to mark up the things you sell that are not labor.
Using a standard calculator, input your cost per item and hit the 'X' key (multiply) then input 40 and hit the % key. add this to your origonal cost per unit and this is your retail price that you charge the customer per unit.
"Use always this number in your buisness and your buisness will not fail. 30% and you lose [your] buisness. 50% and you lose [your] customers, then you lose [your] buisness. 40% is correct all [over] the world".
Howard (Hushmandt) now ownes 13 stations in the southern California area. And yes every one has a slusshie machine lol lol
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Old 03-29-2006, 12:29 PM   #19
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Re: Paying For Material


maybe he should have tought you how to spell also
like i said i am just kiddin.i dont speil so goud mysellf.
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Old 03-29-2006, 07:39 PM   #20
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Re: Paying For Material


Quote:
Originally Posted by wbsbadboy
Some years ago I was working as a mechanic in a gas station owned by a husband and wife that had immigrated here from Iran to escape the Iatola komani (sp?). He was a buisness professor there and the one thing he tought me was how to mark up the things you sell that are not labor.
Using a standard calculator, input your cost per item and hit the 'X' key (multiply) then input 40 and hit the % key. add this to your origonal cost per unit and this is your retail price that you charge the customer per unit.
"Use always this number in your buisness and your buisness will not fail. 30% and you lose [your] buisness. 50% and you lose [your] customers, then you lose [your] buisness. 40% is correct all [over] the world".
Howard (Hushmandt) now ownes 13 stations in the southern California area. And yes every one has a slusshie machine lol lol
He could have saved a step by multiplying by 1.40 instead.

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