# material mark-up



## ABOLT1985 (Feb 24, 2012)

i know this is kinda odd question but what are some of you guys average mark up % on material in residential


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## svh19044 (Jul 1, 2008)

Not to "sound" rude, but flat rate, it's irrelevant how much I mark up material.


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## electricmanscott (Feb 11, 2010)

svh19044 said:


> Not to "sound" rude, but flat rate, it's irrelevant how much I mark up material.


Not rude, just doesn't answer the question.

Really though there is not right or wrong answer. For me it could be 20% on an expensive item or 500% on something else.


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## ABOLT1985 (Feb 24, 2012)

so you do not have a % you use like 25 or 50%


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## ABOLT1985 (Feb 24, 2012)

so like wire 4/0 urd 2.48 a foot what would you charge per foot


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## KRD (Feb 25, 2012)

Where I worked we marked up material 70% most of the time.


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## kaboler (Dec 1, 2010)

As cheap as possible so I only make $15 an hour.


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## thegoldenboy (Aug 15, 2010)

200%


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## MHElectric (Oct 14, 2011)

If it is something I pull off the van during a service call, its double whatever I paid. If it something Im pricing into an estimate for a job, its usually just an inflated price. Ex. - if 4/0 4/0 4/0 2/0 ALU SE is $3.90/foot Ill charge $4.50/foot, If its an AFCI is $39 sell it at $55. Im not a well seasoned veteran at this, but it does works well for me. 

As a side note, I do add some to the material price after its all added up for elbow room. There are many others here who are much more knowledgable on this subject.


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## captkirk (Nov 21, 2007)

it all depends on how much the item is.... If its a 5 dollar item your probably looking at 500 percent .... if its a 10,000 dollar piece of equipment its probably something like 7 or 8 percent... it all depends dude.. you really cant apply one figure to cover everything... What would be the point of charging 10 percent on a three dollar item...?


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## ceb58 (Feb 14, 2009)

M D Shunk once posted a mark up chart that was real good. Need him to come back with it.


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## muck (Jun 30, 2008)

Something like this? I think this is M D Shunk's.

Sliding Scale Markup Multiplier Table, Per Item:

$0.00 to $0.49 x 6
$0.50 to $0.99 x 5.75
$1.00 to $1.49 x 5.5
$1.50 to $1.99 x 5.25
$2.00 to $2.49 x 5
$2.50 to $2.99 x 4.75
$3.00 to $3.99 x 4.5
$4.00 to $4.99 x 4.375
$5.00 to $5.99 x 4.25
$6.00 to $6.99 x 4.125
$7.00 to $7.99 x 4
$8.00 to $8.99 x 3.75
$9.00 to $9.99 x 3.625
$10.00 to $19.99 x 3.5
$20.00 to $29.99 x 3.375
$30.00 to $39.99 x 3.25
$40.00 to $49.99 x 3.125
$50.00 to $59.99 x 3
$60.00 to $69.99 x 2.75
$70.00 to $79.99 x 2.625
$80.00 to $89.99 x 2.5
$90.00 to $99.99 x 2.333
$100.00 to $139.99 x 2.25
$140.00 to $169.99 x 2.166
$170.00 to $199.99 x 2
$200.00 to $239.99 x 1.855
$240.00 to $269.99 x 1.823
$270.00 to $299.99 x 1.789
$300.00 to $349.99 x 1.75
$350.00 to $399.99 x 1.725
$400.00 to $499.99 x 1.6875
$500.00 to $749.99 x 1.6
$750.00 to $999.99 x 1.55
$1,000.00 to $1,499.99 x 1.5
$1,500.00 to $1,999.99 x 1.45
$2,000.00 to $2,999.99 x 1.4
$3,000.00 to $4,999.99 x 1.35
$5,000.00 to $9,999.99 x 1.3375
$10,000.00 to $24,999.99 x 1.3333
$25,000.00 to $49,999.99 x 1.33
$50,000.00 to $99,999.99 x 1.3


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## ABOLT1985 (Feb 24, 2012)

How long you been a contractor muck?????


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## muck (Jun 30, 2008)

Well, I'm semi retired now after 40 years.


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## ABOLT1985 (Feb 24, 2012)

We just have a set formula we use no matter if its a wire nut or switch gear think i need to change that to be competitive in bidding jobs


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## Knauer (Jun 6, 2011)

muck said:


> Something like this? I think this is M D Shunk's.
> 
> Sliding Scale Markup Multiplier Table, Per Item:
> 
> ...


You sell a $40 breaker at $120 a pop? I fail to see how you'd be able to bid jobs with that much markup.


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## HARRY304E (Sep 15, 2010)

Knauer said:


> You sell a $40 breaker at $120 a pop? I fail to see how you'd be able to bid jobs with that much markup.


Because that is hidden in the grand total price.


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## SteveO. (Oct 17, 2011)

Knauer said:


> You sell a $40 breaker at $120 a pop? I fail to see how you'd be able to bid jobs with that much markup.


I'd agree with you. If I charged $20 for a $5 light bulb I'd never get any work. I'm not cheap but I'm not a rapist either. I make my money by being efficient, not by gouging people.


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## 480sparky (Sep 20, 2007)

Knauer said:


> You sell a $40 breaker at $120 a pop? I fail to see how you'd be able to bid jobs with that much markup.



I don't _sell _breakers. I _supply_ breakers for the job. And I _charge_ for the job.

You think gas stations are paying $3.65 for a gallon of gas these days?


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## SteveO. (Oct 17, 2011)

480sparky said:


> I don't _sell _breakers. I _supply_ breakers for the job. And I _charge_ for the job.
> 
> You think gas stations are paying $3.65 for a gallon of gas these days?


I think we all agree that you need to mark up material. We're wondering about the chart though as for me, it looks like a recipe for sitting at home all week. :no:


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## 480sparky (Sep 20, 2007)

SteveO. said:


> I think we all agree that you need to mark up material. We're wondering about the chart though as for me, it looks like a recipe for sitting at home all week. :no:



You need to learn how to sell a cake, not the flour, salt, sugar, vanilla, eggs and butter.


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## SteveO. (Oct 17, 2011)

480sparky said:


> You need to learn how to sell a cake, not the flour, salt, sugar, vanilla, eggs and butter.


I make good money on my jobs so I don't think I need to change anything. I know what my costs and labour will be and make money off both without quadrupling the price of a $5 item. My point is the chart is flawed and those rates aren't sustainable, even in the lucrative market I'm in.


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## svh19044 (Jul 1, 2008)

SteveO. said:


> I make good money on my jobs so I don't think I need to change anything. I know what my costs and labour will be and make money off both without quadrupling the price of a $5 item. My point is the chart is flawed and those rates aren't sustainable, even in the lucrative market I'm in.


For service calls, I think that the chart is quite reasonable, especially since it looks geared more towards commercial/industrial markups. 

For emergency residential service calls, I see no problem with the chart. For bidding residential jobs, the markups are only slightly high in terms of percentage, but I agree, they are probably enough to make one sit home all week if they are calculated separately and in addition from/to labor rates.


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## 480sparky (Sep 20, 2007)

SteveO. said:


> I make good money on my jobs so I don't think I need to change anything. I know what my costs and labour will be and make money off both without quadrupling the price of a $5 item. My point is the chart is flawed and those rates aren't sustainable, even in the lucrative market I'm in.


What's the difference between:

$1000 job, $800 labor and $50 in parts marked up to $200

and

$1000 job, $950 labor and $50 in parts

?


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## muck (Jun 30, 2008)

Gentlemen please, you have to adjust the percentages to what your area will bear.
I don't use these percentages for residential, as that would definitely put you out of the ball park.
Plus, on residential, we have some discounts for senior citizens, disabled and military (active and veterans).
For commercial, industrial and hazardous we adjust accordingly.


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## 19kilosparky984 (Sep 14, 2011)

muck said:


> Gentlemen please, you have to adjust the percentages to what your area will bear.
> I don't use these percentages for residential, as that would definitely put you out of the ball park.
> Plus, on residential, we have some discounts for senior citizens, disabled and military (active and veterans).
> For commercial, industrial and hazardous we adjust accordingly.


You must be one of them going rate guys

" what the market will bear"???

You shouldn't let outside factors dictate your markup


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## muck (Jun 30, 2008)

Not at all - depends on different factors.
Location of job (have to pay for parking, etc.)
Distance from shop to job (gas, etc.)
New or old work
Working conditions
Equipment needed (lifts, pullers, etc.)
You get the idea.


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## kaboler (Dec 1, 2010)

480sparky said:


> What's the difference between:
> 
> $1000 job, $800 labor and $50 in parts marked up to $200
> 
> ...


I wrote something really nice, but why would you or I really want to give guys advice on how to price their parts?

The world needs dishwashers and toilet cleaners and trunk-slamming lowball electricians. I certainly don't want to work in the food service and housekeeping electrical industry.

Nah, it's not entirely true. I've done a few restaurant calls, but they've mostly been 100% emergency and I was the only one with the tools, materials, and talent, (and likely the only one to show).


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## SteveO. (Oct 17, 2011)

480sparky said:


> What's the difference between:
> 
> $1000 job, $800 labor and $50 in parts marked up to $200
> 
> ...


The difference is if the job is to install 100, $5 items that I marked up to $22 each and it only takes me 3 hours to do the job, there's no way you get that job and if you did, you'd never get another one from that person/company. That's why when you quote by either flat rate or add up time and material it needs to be reasonable for the job you're doing. For the most part, your customers know how much time you've spent and have a ballpark idea what your material would cost to buy at Home Depot. 

If you can charge people 4-5 times what an item is worth and get away with it, good for you. I'm in a pretty wealthy market and can't do that, nor would I because it's gouging.


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## 480sparky (Sep 20, 2007)

SteveO. said:


> The difference is if the job is to install 100, $5 ........



100 x $5 = 500, not 50. Take 100 50¢ items and mark 'em up to $2.20 each.


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## SteveO. (Oct 17, 2011)

480sparky said:


> 100 x $5 = 500, not 50. Take 100 50¢ items and mark 'em up to $2.20 each.


:001_huh: 

I did my own example. I can't charge someone 3 hours labour and $2200 in material to install 100 lightbulbs, for example, when it's clear that a bulb is $5 and I only spent 3 hours on site. At $100 an hour, $2500 is too high for a total. Had I doubled the price of the lamps to $10 and charged $1500 for the same job, I make great money and it's more reasonable when the customer looks in to it or even asks a question. I like to be able to answer when someone asks why it costs what it does and not be embarrassed or feel guilty. That extra thousand dollars the chart adds is pretty tough to justify and would keep you from getting that job.


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## 19kilosparky984 (Sep 14, 2011)

muck said:


> Not at all - depends on different factors.
> Location of job (have to pay for parking, etc.)
> Distance from shop to job (gas, etc.)
> New or old work
> ...


No actually I don't " get the idea"

No matter what the things you listed, your overhead stays the same thus so will your markup


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## MDShunk (Jan 7, 2007)

muck said:


> ...
> I don't use these percentages for residential, as that would definitely put you out of the ball park.


Really? Someone must have forgotten to tell me that when I made that chart. Here I thought I was successful. :laughing:


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## Going_Commando (Oct 1, 2011)

19kilosparky984 said:


> You must be one of them going rate guys
> 
> " what the market will bear"???
> 
> You shouldn't let outside factors dictate your markup


It's been working for our company since 1945, and my grandfather has had a very comfortable retirement, so we must have been doing it wrong for a reaaaaaallly long time.


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## asddsa (Jan 31, 2012)

480sparky said:


> You think gas stations are paying $3.65 for a gallon of gas these days?


Actually, yes. Some are even selling gasoline at a loss.

My in-laws run a store and sold gasoline for 20 years. They recently stopped selling gasoline.

In the last several years, they were making in the range of *-$0.10* cents to *$0.07* cents per gallon. This changed on a daily basis.

Most stations receive a daily fax from their distributor with the day's prices per gallon including the delivery charge.

The only stations that make money selling gasoline are the high volume stations (Race Trac), the stations that are corporate-owned, or the stations that are distributor-owned.


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## ABOLT1985 (Feb 24, 2012)

There are obviously lots of ways to do this but i would like to see what some of you guys numbers would be on this. I put out a bid today to replace a service on a single family dwelling and i know there is all kinda variables to a price lets keep it simple the service is 100 amp going threw an eve 4ck r/t can feeding a small garage and will be feeding panel inside threw meter here are my numbers put your own formulas to work and lets see where im at to some of you all. Material was $210.00 and figured 2men 6 hrs remember not marked up on my prices use your own figures thanks


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## ABOLT1985 (Feb 24, 2012)

Somebody


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## Going_Commando (Oct 1, 2011)

ABOLT1985 said:


> There are obviously lots of ways to do this but i would like to see what some of you guys numbers would be on this. I put out a bid today to replace a service on a single family dwelling and i know there is all kinda variables to a price lets keep it simple the service is 100 amp going threw an eve 4ck r/t can feeding a small garage and will be feeding panel inside threw meter here are my numbers put your own formulas to work and lets see where im at to some of you all. Material was $210.00 and figured 2men 6 hrs remember not marked up on my prices use your own figures thanks


Can you repeat that in English please?


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## redseal (Sep 22, 2010)

40% material, 2 hr min per job at t&m. Works for me. Just dont forget the permit cost on the job...:no: lol


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## ABOLT1985 (Feb 24, 2012)

ok thanks man i guess you had no problem understanding my English like commando lol


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## RIVETER (Sep 26, 2009)

ABOLT1985 said:


> i know this is kinda odd question but what are some of you guys average mark up % on material in residential


25 years ago I marked it up 35%. Today, it may be different.


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