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What is a typical low cost material level and its markup?
I have the Handyman Price List, and have recently started a handyman business. I am undecided between charging markups on materials or charging for the time to get materials or both. Any advice is much appreciated.
Hi Reider,
I highly recommend that you mark up your materials. After all, it does take you time to go get those materials therefore you should make money on them. It’s a common business practice with any business and especially service businesses. With that said, I use $5 as my low cost materials level and 80% for that markup and I believe that’s not unreasonable at all. For materials that cost more than $5, I mark them up 20% or so.
By the way, the Handyman Price List is getting a huge update very soon. It will be in a completely different (ie. better) format. I’ve been working on it for the past couple months. I’ll let everyone know as soon as it’s released. Of course, current customers will get the new version free.
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LikeDislikeTravis,
Thanks for the quick answer to my question. I look forward to the updated Handyman Price List. I’m extremely excited about building a quality and successful business!
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LikeDislikeI do what Travis does, with one small exception. I don’t have a minimum parts charge ($5.00 + 80%). Most of my customers are large commercial property managers or local property managers. Because of the volume I have with them I just mark up all my materials 20%. I usually have 4 or 5 jobs in the future so I try to purchase material and parts for all of them at one time. Saves me time and nobody is the wiser.
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LikeDislikeI almost always add a “Shop Supplies” charge to my estimates and invoices, usually between $5 and $20, to cover things like screws, nails, knife blades, usage on drill bits and saw blades, paper towels, rags, etc.
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