I have been in the construction business for a total of 9 years (not long compared to many of you) and started my own business two years ago. Things have been going quite well and now that things going well on the job without my feeling the need to “babysit” I am spending more time running the business and less time being run by it.
I would really appreciate some input from you guys on the question of markup. I read a lot about the “averages” or “standard” markups and find it difficult to believe that a 67% markup is possible except on smaller remodeling projects.
What kind of markup do you guys get for your jobs and is it across the board or do you have different numbers for labor vs material.
I presently use a 25% markup on material and 35% on labor. (mainly additions/large remodel projects). I don’t seem to be missing jobs and am presently increasing my markup but was curious what others have to say.
Thanks,
Todd
Framing Square Construction
“We don’t manufacture housing, we build quality homes”
Replies
Newter, I'm sure you will get a variety of answers. If however, you are not currently receiving:
1. Fine Home Building
2. Remodeling Magazine
3. The Journal of Light Construction
4. Quality Remodeler
5. Professional Remodeler
you are missing the boat. Your question has already been answered in all of the above magazines over several months and years, and are also in threads here and on the JLC forum. Just scroll down and look for them.
Newter, Sonny is right you're going to get a wide variety of answers. But I believe it all comes down to, what the market will bear. If you're having trouble keeping busy your mark-up is too high. If you're so busy you can't see straight, your mark-up is too low. I never use the same mark-up across the board for every job I bid, it all depends on how far out I'm scheduled at the moment.
Supply and Demand
thanks guys