Material Mark Up...
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either or here...we either charge slightly under retail, or add 15%-ish to our actual cost, depending on the product. However, after hearing what alot of guys here are recommending, we are looking at bumping that 15% up a bit. Curious to see how others weigh in on this one...
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usually retail is way over 15% what we pay. I'd say charge retail, that's what a legit paint store charges homeowners - occasionaly will give them 10%.
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1,533 Posts
30% for all materials
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14,407 Posts
I dont think it would be reasonable to charge more than retail.
Paint Markup
Hi JMCP,
I believe that in a business situation when a contractor refers to "a 15% Markup" they are referring to "Your Cost" as in "I will charge you cost plus 15%"
That being said, I personally believe that when you are determining your markup amount don't forget - if you pick up the paint you are responsible for it - mismatches, overages, time to pick it up, wait for it, shlep it to the job, return it if it is spoiled, gas, blah, blah, blah.
Irv Chasen who is a contractor's consultant has long preached about how to mark up your costs to truly recover your investment. He writes articles for one of the paint magazines and used to partner with Monroe Porter with "Proof consulting". They both have some good books and tapes on the business side of painting.
Steve Cole
A Painting Company
Sammamish, WA
Hi JMCP,
I believe that in a business situation when a contractor refers to "a 15% Markup" they are referring to "Your Cost" as in "I will charge you cost plus 15%"
That being said, I personally believe that when you are determining your markup amount don't forget - if you pick up the paint you are responsible for it - mismatches, overages, time to pick it up, wait for it, shlep it to the job, return it if it is spoiled, gas, blah, blah, blah.
Irv Chasen who is a contractor's consultant has long preached about how to mark up your costs to truly recover your investment. He writes articles for one of the paint magazines and used to partner with Monroe Porter with "Proof consulting". They both have some good books and tapes on the business side of painting.
Steve Cole
A Painting Company
Sammamish, WA
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20 Posts
I have always charged the customer a percentage above the cost I pay. I honestly do not know the retail price for many of the materials I use. The majority of the money I make on each job is on the labor, so the last thing I want to have happen is the customer becomes unhappy about the material prices and end up bickering over $100 or $200. In addition to cost of paint, roller covers, etc., I always charge a flat equipment fee for ladders, sprayers, brushes, etc. When doing exterior work, I also always charge a power washer rental fee, which I communicate at the time of the estimate. Since material costs are typically the only variable in my price quotes, I try to stick as close to what was estimated as possible.
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1,390 Posts
I mark up materials 40% to 60% above what I pay. Let's look at what's involved in getting paint.
A typical purchase for us is 5 gallons. The supervisor must leave the job. He usually has a drive of 15 minutes or so each way. If it's a standard color, by the time he places the order, has the paint mixed, and is out the door, he could have another 30 minutes tied up. So that 5 gallons cost him an hour. It it's a custom match, he could have more time. But we'll say on average a gallon takes 12 minutes of time.
If my cost is $20 and I charge the customer $32, that leaves me $12 gross profit, or $60 per hour. That puts me right in the ballpark of what I charge the customer for our labor. Picking up paint thus becomes a part of our labor charge, though I charge for it in a different manner.
But we have other costs associated with this. First, the crew tends to be a little less productive when the supervisor is gone. Second, we must record the transaction in our books, and ultimately pay the bill. This takes administration time.
If I have a job calculated at X hours, I also have to allow time to obtain product. The markup takes care of this.
I do have exceptions. We have a regular job each summer that requires 100+ gallons. I have this delivered, and reduce my markup accordingly.
Brian Phillips
A typical purchase for us is 5 gallons. The supervisor must leave the job. He usually has a drive of 15 minutes or so each way. If it's a standard color, by the time he places the order, has the paint mixed, and is out the door, he could have another 30 minutes tied up. So that 5 gallons cost him an hour. It it's a custom match, he could have more time. But we'll say on average a gallon takes 12 minutes of time.
If my cost is $20 and I charge the customer $32, that leaves me $12 gross profit, or $60 per hour. That puts me right in the ballpark of what I charge the customer for our labor. Picking up paint thus becomes a part of our labor charge, though I charge for it in a different manner.
But we have other costs associated with this. First, the crew tends to be a little less productive when the supervisor is gone. Second, we must record the transaction in our books, and ultimately pay the bill. This takes administration time.
If I have a job calculated at X hours, I also have to allow time to obtain product. The markup takes care of this.
I do have exceptions. We have a regular job each summer that requires 100+ gallons. I have this delivered, and reduce my markup accordingly.
Brian Phillips
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14,407 Posts
Excellent points.
I add a percentage to the price that I pay.I usually do a 20 or 25% markup,but there are exceptions.If a job has some unforseen unpleasant surprises lol,and I know that my client is still going to get a good deal,I may go as high as 33% markup over retail price for materials.I also prefer to keep my price,and materials costs seperate; so I will give an estimate "plus materials". If they need a firm materials price I will do a 25% mark-up.If not, I like to stay flexible,lol
Welcome to painttalk. Just to let you know this thread is from 2008 and likely won't get many responses. Feel free to introduce yourself.
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