Wondering what your firms markup is on materials, septic tanks, sand gravel, pipe, pipe fittings, sub contractors pricing, this should be a good.

lake side bob · 2026-01-08T21:35:15.000Z

My self I have been using a markup of 20% on gravel and septic tanks etc. I figure that I have to add a markup on the materials to generate revenue to cover overhead expenses that are not part of the equipment hourly bid rates. Now with slow years that 20% markup does not cover all the over head expenses and I have to eat it out of my wages ( what ever is left at the end of the year after all expenses are paid).

Started by lake side bobJan 8, 202627 replies

lake side bobJunior MemberJan 11, 2026#21
How about sit work excavators like myself, what do your firms do? Use a % markup on materials included in the bid or????
CM1995ExpertJan 11, 2026#22
lake side bob said: How about sit work excavators like myself, what do your firms do? Use a % markup on materials included in the bid or???? Click to expand... Yes I put a % MU on all materials. The % ranges from 5-15% depending on the material and how bad I want the job. If it's a StormTech system that may run $75-100K in just material, I may only put 5% on that portion. If it's standard RCP, HDPE and structures it's a standard 10%. I use a spreadsheet that's been honed in over the years with a markup column so it's easy to change the MU to whatever you want.
smifwalSenior MemberJan 11, 2026#23
lake side bob said: How about sit work excavators like myself, what do your firms do? Use a % markup on materials included in the bid or???? Click to expand... I think there is a sweet spot between being competitive, not leaving money on the table or not getting the job because you got greedy on the mark up.I would rather put less on the materials, get the job, and keep busy, I am not losing any money in that senerio just not making as much.
Shimmy1Super UserJan 11, 2026#24
DDoug said: Money is being xfered and accounted for inside the business. Not a bad thing, but you doing it IMHO is. Click to expand... Someone has to do it. If it isn't the mechanic tracking parts use, then it would be someone in the office, or a fleet manager. Either way, an employee is keeping track, and starting the process.
DDougSuper UserJan 11, 2026#25
Shimmy1 said: Someone has to do it. If it isn't the mechanic tracking parts use, then it would be someone in the office, or a fleet manager. Either way, an employee is keeping track, and starting the process. Click to expand... Keeping track of parts & labor is one thing, assigning/deciding dollar amounts especially profit mark ups is clearly another. Front line employees should not have such knowledge of just how the business is being run.
CM1995ExpertJan 12, 2026#26
DDoug said: Keeping track of parts & labor is one thing, assigning/deciding dollar amounts especially profit mark ups is clearly another. Click to expand... That's why I asked Doug the question. Big difference in the 2.
Old DougSenior MemberJan 12, 2026#27
CM1995 said: That's why I asked Doug the question. Big difference in the 2. Click to expand... They came up with a % to add to the price of parts.
DM&RDBulldogJunior MemberJan 12, 2026#28
Old Doug said: They came up with a % to add to the price of parts. Click to expand... Pretty standard practice, they are just trying to mimic as if they hired an outside company. More of a deduction for one company and more profit for the other under their umbrella. Now how they balance their books and make it all work should remain unknown to the guy on the floor just writing up the work order for the office.

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