Cost Of Materials As A Percentage Of Revenue

Bjorn

Hi Guys,

Just wondering if any of you guys can give me an idea of what your materials costs are as a percentage of revenue?

I'm just trying to compare my company against others. I think we have a lot of inefficiencies like waste and theft. When you reply, could you specify if it is residential or commercial work, and for different scenarios? General numbers are good too.

Also, any idea on how to cut down on materials costs would be greatly appreciated!

Thanks,

Bjorn

BKFranks

How about not buying as much and making them use those cut-offs and it won't leave extra material around to steal at the end of the job?
I worked for a guy a GC who would always buy too much insulation. Once the guys installed it all, they would take the extra back to Home Cheapo and get a gift card. Sometimes there would be $100-400 extra insulation. The GC never knew except that all the insulation was used.

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Tim0282

Residential, you'll run 42%. Not much different for me in commercial.
Pretty hard to cut much cost in material. If you are using tools, you are about as close as you can get on mud usage. They don't leave much to sand off and throw on the floor. Being careful with sand paper is a small cost. Don't throw tape on the floor. I guess I'm not sure how to cut material costs. Find a cheaper supplier. If you come up with any good ideas, I'll sure listen. I spend an enormous amount on labor a year. Seems material is less. It is...