That is or should be highly unethical. :evil: I'm glad I don't live in your part of the world.carpenter1st said:alot of times i'll give an estimate for materials. around here , a contractor can't mark up on materials,not really. more of a headache than it's worth. the lumberyards around here are a$$es. first of all, you have to buy a minimum of 10 grand a month to even GET any kind of discount. second, if you're buying large amounts of materials,they find out who you're working for.(SMALL area.)then they will CALL the person and offer them materials CHEAPER than your mark-up.(but higher than retail,of course.) then people get pissy about material prices! i've been undercut by the lumberyards so many times,that anymore i usually just tell people what i need and let them get it.
That is highly unethicalcarpenter1st said:alot of times i'll give an estimate for materials. around here , a contractor can't mark up on materials,not really. more of a headache than it's worth. the lumberyards around here are a$$es. first of all, you have to buy a minimum of 10 grand a month to even GET any kind of discount. second, if you're buying large amounts of materials,they find out who you're working for.(SMALL area.)then they will CALL the person and offer them materials CHEAPER than your mark-up.(but higher than retail,of course.) then people get pissy about material prices! i've been undercut by the lumberyards so many times,that anymore i usually just tell people what i need and let them get it.
Carp, I think the material markup thing is all in your head. This country was and still is being built on a buy and sell market. If you can't make money on handleing you end up not being in biz or working your ars off for little or nothing.carpenter1st said:alot of times i'll give an estimate for materials. around here , a contractor can't mark up on materials,not really. more of a headache than it's worth. the lumberyards around here are a$$es. first of all, you have to buy a minimum of 10 grand a month to even GET any kind of discount. second, if you're buying large amounts of materials,they find out who you're working for.(SMALL area.)then they will CALL the person and offer them materials CHEAPER than your mark-up.(but higher than retail,of course.) then people get pissy about material prices! i've been undercut by the lumberyards so many times,that anymore i usually just tell people what i need and let them get it.
I've never included a refrigertor in a job. Usually attached fixtures such as vanities, sinks, faucets ect...Bob Kovacs said:"Even allowances are marked up."
What do you do when you list a "$1,000 allowance for new refrigerator"? Do you include $1400 in your estimate? What happens when the customer selects a $2,000 refrigerator- do they pay you an additional $1,000, or an additional $1,400? What about when they select a $600 refrigerator?
I'm curious because allowances are usually a point of confusion for many contractors, especially when the allowance amount was way off compared to the actual.
Bob
I gotta write em that long so I can ensure Grumpy won't pick up any of these secrets. He won't read anything longer than 50 words so I can always get these by him! :cheesygriGlasshousebltr said:Your forgot method 4 Mike, thats to write a book about it.......jeez.:cheesygri
Bob
I'm sure that the mark-up is going to be different in different industries but I try to shoot for 40%. Sometimes its even more and sometimes it is even less. When I send a customer to pick out their ceramic tile to my tile wholesaler the mark up is only 25% because that is my current discount I get there and they show the customers retail pricing, so it does vary.AAPaint said:Wow....That .4 markup is 40% eh? That's dang nice....I only charge 15% on materials usually. I think I gotta beef up the numbers in that area a little! I'm afraid if I did it'll make me un-reasonable on paint prices. I dunno if I'd get away with $65/gallon, hehe! :cheesygri
Materials for me is paint, stain, and drywall pretty much.Mike Finley said:I'm sure that the mark-up is going to be different in different industries but I try to shoot for 40%. Sometimes its even more and sometimes it is even less. When I send a customer to pick out their ceramic tile to my tile wholesaler the mark up is only 25% because that is my current discount I get there and they show the customers retail pricing, so it does vary.
It certainly would be hard for me to justify outlaying money for customers products and assuming all the risk and responsibility, not to mention the time involved in picking them up, unpacking them, storing them and such for only 15% markup.
It sounds like it does. I charge 50% on all materials and don't bother figureing out how many gallons of gas and time etc. it took me to handle it. And, like I said in the other thread I don't put the materials on the bid.AAPaint said:Materials for me is paint, stain, and drywall pretty much.
You know, I guess I just always looked at it differently. I charge 1-2 hours for pickup and delivery time involved....plus take 15% markup. I guess it works out the same?
Oh the BLB? I'm a member.carpenter1st said:(talk about the blind leading the blind.)
:cheesygri :cheesygri :cheesygri :cheesygri :cheesygriMike Finley said:I gotta write em that long so I can ensure Grumpy won't pick up any of these secrets. He won't read anything longer than 50 words so I can always get these by him! :cheesygri