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Material Cost - Wholesale Cost & Retail Cost.

 
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Old 05-11-2010, 02:59 AM   #1
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Material Cost - Wholesale Cost & Retail Cost.


I have been approached by one individual about building portable hunting cabins and another individual about portable storage sheds. The hunting cabins would be sold for a retail price and the storage sheds for a wholesale price.

Lets say i had $2000.00 worth of material in a cabin or shed (not counting labor hours) what would i need to mark it up to in order to charge a wholesale price for it? How much should the retailer add to the wholesale cost in order to offer it for a retail price?
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Old 05-11-2010, 07:41 AM   #2
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Re: Material Cost - Wholesale Cost & Retail Cost.


0.1750*2000=tree fiddy


edit: sorry...that just slipped out.... I need another cup of coffee

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Old 05-11-2010, 09:02 AM   #3
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Re: Material Cost - Wholesale Cost & Retail Cost.


this guy I worked for had a portable shed that was well over 100 years old. it was pretty cool and movable
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Old 05-15-2010, 01:15 PM   #4
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Re: Material Cost - Wholesale Cost & Retail Cost.


Seriously.

Ive done some deck and privacy fencing repairs and ive done some horse barn repairs. But what im most familiar with is custom cabinet and furniture building and residential painting.
So im not sure how to set wholesale and retail prices on storage sheds and smaller size hunting cabins. I dont want to price them to low nor do i want to price them too high.
I dont want to build and sell something for 30% cheaper than what the majority of other contractors would charge due to the fact that if a couple more people started doing it for 30% cheaper the general public as a whole would soon expect all contractors to do it for the 30% less.
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Old 05-15-2010, 05:44 PM   #5
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Re: Material Cost - Wholesale Cost & Retail Cost.


Look at all your costs, not just the time to build it but the time to deal with your customers, billing, delivery, dealing with returns and damages, parts that will be missing even though you really did supply them, and the big one, insurance. Your standard liability insurance will not cover you with this stuff, you will need to insure yourself as a manufacturer.

When you look at all the real costs, you will probably find that all that stuff I listed (and there will be more) will be greater than the labor cost of assembling the kits.
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Old 05-15-2010, 06:16 PM   #6
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Re: Material Cost - Wholesale Cost & Retail Cost.


Thanks for posting on ContractorTalk.com. Straight pricing questions are frowned upon here, as are 'Going Rate' questions. If you are a contractor seeking advice regarding your pricing structure, the Moderators of this forum would like to direct you to this pricing thread - Pricing, Estimating and Success.

ContractorTalk.com is designed for professional contractors to discuss issues and topics related to the construction and remodeling industries.

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