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What are the average labor/material mark-ups?
I am looking for what the average percentage is for marking up labor and materials when costing a job.
We are a small HVAC business. We are adding a salesperson and I am trying to get an idea of mark-ups so I can figure out the percentage of the profit to pay the salesperson
Zarg222- that is what I was thinking, thank you :)
2 Answers
- HenryLv 71 decade agoFavorite Answer
There is no set number. It depends on the industry and competition.
- Anonymous1 decade ago
the company I work for is a large mechanical contractor - for project work - we try to get a 20-25% gross profit margin (which would be 25-33% markup) (which includes overhead for indirect costs), basically direct labor, taxes, fringe benefits, material, vehicle expenses, supervisor/foreman pay, taxes and benefits. etc
unless you are marking up your hourly wages by at least 100-150% and materials 10-20%, you probably won't make a decent living after taxes - if you pay your workers $25/hr - you better be billing them out at $50-70/hr