What is the average contractor markup on building materials?
Kip
Edited 9/29/2004 1:25 am ET by KIPHERR
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Replies
Electrical shops, all I have numbers for, mark up between 50% to 150%. Average seems to be around 100%. Of course it varies a lot even in one shop.
The reconditioned 200A Federal Pacific main breaker that costs us $600 doesn't get the 100% treatment as it would balloon the cost of a residential job. In that case a 25% mark up would still give an adequate hob for what amounts to a two hour job with one hour being driving, troubleshooting and ordering the replacement.
Sometimes you have to play it by ear.
Unfortunately for us carpenters, anyone can buy materials for the same price we can. If we pay our bills by the 10th we get about 7% discount. 0% on the 11th. Please pay your bills on time! There is no discount at the big box stores, just the most interest they can legally charge.
Beat it to fit / Paint it to match
why do you ask ?
Mike Smith Rhode Island : Design / Build / Repair / Restore
I don't think there's really an average. Every contractor prices things differently.
I suspect the public thinks that contractors mark stuff up a HUGE amount. But I don't think that's really true, in general.
Only those who will risk going too far can possibly find out how far one can go. [T. S. Eliot]
What do you want included in the markup?
Everyone uses different formulae depending on their business structure and each contract.
Someone mentioned discounts but that has NOTHING TO DO WITH MARKUPS.
I markup some things way more than others.
cans of stuff that has a shelf life
nails that I use in small quantities but buy in large quantities and keep inventoried
Stuff that cost money to handle
items that are more then average likely to havce a warrantee calback
Special order items that require a lot of time and tracking, not to mention the headaches involved
so markup can range from 2% to 100% Does that sound like the ballpark figure you are looking for?
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I guess I should clarify. I am mostly interested in lumber and roofing materials.
The other day I was checking out the local Lowes. I looked at there price for a treated 2X8X14. There price was over $3.00 more than the local building supply.
I hardly ever put a markup on building materials. However after seeing this, I am wondering if a 15% markup would not be out of line?
Kip
When people come in here and talk about pricing, I think we all assume it's a homeowner. The homeowners seem to all think they're getting screwed if a GC marks up materials.
Try checking outthe business folder. Or use the advanced search function to look for the word "markup". I think you'll find a lot of threads about the subject. And I think you'll find that virtually every GC marks up materials.I haven't lost my mind. It's backed up on disk somewhere.