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Up Topic Welding Industry / General Welding Discussion / Does anybody mark up consumables and materials?
- - By Waynelund (*) Date 01-04-2012 16:56
Back in my machine shop days I never marked up what I paid for steel and consumables. Getting into the mobile welding business, my son thought a 30% markup on steel for a job was the right thing to do. What should I counsel him to do?
Parent - By hillbilly delux (***) Date 01-04-2012 21:17
10% is what I charged if I was billing for steel and consumables
Parent - By texwelder (***) Date 01-05-2012 00:15
I never mark them up but I always get p.o. number and go get it or have it delivered if I buy I do mark it up a little but not much just to cover the extra time it will take when doing sales and income tax
Parent - By rcwelding (***) Date 01-05-2012 01:18
I had one customer that I did allot of work for.. He was a pickle to deal with.... I would mark up material 50% on him...

If I am bidding a job I try to make my material and labor cost be the same... So $500 labor $500 material... $10,000 labor $10,000 material..

If one cost or the other would get too far out of wack I would ether turn the job down or try to figure out what the problem was.

That system worked well for me for ten years..
Parent - By Rafter_G_Weldin (***) Date 01-05-2012 02:48
25-30% if you have to buy material consumables are figured in your labor cost and that price depends on the area you live in around here in south Texas its 60-75 an hr
Parent - By dbigkahunna (****) Date 01-05-2012 03:00
Materials should be marked up 15% minimum plus your margin and consumables your overhead plus your margin.
If you are not, you are giving away money.
If this is a $1-2K job and you get paid as soon as the work is finished and you are a "Nice Guy" then maybe you can afford to front the materials and consumables. If you have a $250K materials and five welders going through $7 dollars a hour consumables ($350 per day per crew) and the customer keeps you 45 days out, then your durn well better marking up your materials and consumables. They will eat into your profit quick.
Parent - By Cumminsguy71 (*****) Date 01-05-2012 04:12
That's a tough call for me. On some stuff I've marked it up, other things I don't. Usually it's figured into the price. Figure out how much material costs, what the job is worth and there you have it. Seems when I first started I was more into figuring the exact cost of materials, then adding 20%. Now not so much. A friend and I bid a job after talking on the phone for about 10 minutes, didn't even know how much material was going to cost. Knew how much we needed but that was it. This last year though I really have not even thought about markup. The last job I did 165' of fancy rail with about 100 feet of radius railing and I had no markup on the material.

You do enough of one thing or types of work and you'll have an idea of price when you walk onto a job.
Parent - - By welderbrent (*****) Date 01-05-2012 12:38
Selling steel at the shop it gets marked up 60% for whole sizes/lengths, 100% for cut lengths.

When being used on a job, it depends upon the size of the job and the attitude of the customer but at least 15% to cover handling, ordering, paperwork, etc.

Don't give time away.  Check what electricians get when they come and replace a part at your house or business.  Same with plummers, etc.  None of them sell you the part for the same price they paid for it.  And they charge you driving time to go get it if they don't have it on their truck.

Have a Great Day,  Brent
Parent - By Cumminsguy71 (*****) Date 01-05-2012 18:22
Plumber and Electrician around my shop are one in the same. Same as the secretary, maid, mechanic, LOL!

I don't sell anything from my place and when bid a job I've got it figured in for running around time but not a certain percentage I'll actually ding everybody.
- - By joe pirie (***) Date 01-05-2012 00:20
Id go with your son  i marked up all matl 30% when i had a fab shop
Parent - - By Superflux (****) Date 01-05-2012 05:51
30% is reasonable.
Remember you put in time and backbone to find, receive, handle/unload this material.
YEP, you could have had your hood down.... So what is the difference?
Or did the Material Purchasing Fairy place this stuff on location for you???
Parent - By eekpod (****) Date 01-05-2012 11:44
yes mark it up, 30% is not bad.
- By Dualie (***) Date 01-06-2012 04:53
Big structural jobs i bid by the lb.  most anything else materials get between a 20%  and 50% markup depending on the customer and the material.

and lets say your timely pay is most critical in where your markup comes in.
Up Topic Welding Industry / General Welding Discussion / Does anybody mark up consumables and materials?

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