CONTRACTOR PRICING GUIDE
How Much Should Contractors Mark Up Materials?
There is no single markup percentage that makes every contractor profitable. Material handling creates costs, but the correct selling price depends on the rest of the job and the business behind it.
Markup is not margin
If something costs $1,000 and you mark it up 30%, you sell it for $1,300. The $300 difference is about a 23% margin on the selling price—not 30%.
Materials consume more than purchase price
Ordering, pickup, delivery, storage, damage, waste and returns can consume time and money. Your pricing system should recover those realities without pretending the material markup alone pays for the whole company.
Check the entire quote
Evaluate the expected customer price after materials, subcontractors and other direct costs, then compare the remaining contribution per productive hour with what your business plan requires.