[Dale Wiley]

This question came up on another board about marking up material prices. We have done several paver jobs this year, and I just finished bidding 2 more. this is basic, not the fancy stuff you guys here all do, but a new trend in our area.

I markup all materials at least 15%. It costs at least 11% to administrate materials, and I like to make a little bit on it. As I have been estimating these paver projects, the cost of the pavers is high enough that 15% is all I dare put on , because I really want to sell the labor, not the materials.

I can average more than that on other types of landscape work, plants and sprinkler materials I mark the hell out of. I am considering backing off the markup to my min 8% requirement to get the labor at 20% net.

paver gurus.. help me out here...

[Stonehenge]

Funny you mention that - in the Private Gardens I've been creating and disseminating excel spreadsheets on pricing different kinds of work, as I develop them (with the help of the other members). I tackled the paver pricing first, retaining walls next, and have been dragging my feet a bit on the others.

In that spreadsheet I'm marking up most materials 25% (some are more, if memory is correct). But everything else I'm not applying a straight percentage - instead I've calculated all the costs I need to recoup, break that into (a conservative estimate of) expectee billable man-hours, and tack that $/man-hour figure onto every man-hour budgeted for a project.

But included with that spreadsheet are economies of scale considerations, the ability to tack on mobilization minimums (Lanelle, I love that term!), and just an overall more precise pricing system (at least it's much more precise than what I used to do).

[Rex Mann]

Here we add 10% to all our material costs. Any more than that and you'll be way higher than the other guys. Most guys don't add anything!!! And, pavers here are pretty inexpensive. $1.20 Sf for all generation one pavers. It pays for the freight

Peace,

Rex

[scl]

I add 25% normally, will drop to 20 if I'm whittlin'( I like that word, if it is one!) My distributor marks there's up about that much to retail them, and I figure its worth that for the gettin there,(is that "mobilization"?) and the paperwork. Its also justifiable if your customer asks questions. Eliminates all that "well what if I buy the materials" game, which I refuse to play anyway!
In Rex's market it sounds like its pretty cutthroat, not that bad here yet. But I still don't see a need do drop below retail for an installed and delivered product. Now if your talking sod or plant materials, thats a whole nother animal!

[diginahole]

Pavers and walls I mark up 25%. Aggregates and soils 50%. This makes my prices a bit above retail.

scl - Mobilization usually means the getting the crew and equipment to and from the jobsite each day. Freight and delivery gets the materials to the site.

[HRLand]

Around here all the suppliers seem to charge one price whether you're a contractor or homeowner. With the prices I compete with I can't mark up materials for hardscape work. For planting everyone wants a warranty and I cover my a** well on that.

[Will Pacala]

Some places offer "contractor discounts" and there are sometimes cards that contractors can get that let them get a small discount. For equipment rentals it's all the same wther your a contractor or not.