mike franklin
New Member
Hi, haven't been on in awhile. Just curious as to what everyone is marking up their supplies
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Need Help Percentage Mark Ups
- Thread starter mike franklin
- Start date
bannertime
Active Member
Don't think you'll get a lot of people to talk about margins or operating cost in the public areas. Not that there is a lot of talk about it in the premium area either.
Broome Signs
New Member
calculate the years running costs
add the amount cash you want to make a year
devide by the amount days you want to work a year devide that by 6 and you have your houerly rate
add on material costs + say 40% and bingo, thats the base cost of the job cost
add the amount cash you want to make a year
devide by the amount days you want to work a year devide that by 6 and you have your houerly rate
add on material costs + say 40% and bingo, thats the base cost of the job cost
mike franklin
New Member
Do you make your own channel letters? we used to but now I am getting them from sign fab. That's what I was wondering the most about, what people are marking that sort of stuff up.
The Big Squeegee
Long Time Member
Not enough... Come January...I'll get a step closer.
to 
from OK
to from OKTo answer your question regarding outsourced products, we usually shoot for 35% - 50% Gross Margin on outsourced products depending on market competitiveness, risk, and size of order. (Gross Margin is the % of the sell price that is profit vs. markup which is a percentage of cost that is added to a job) IMHO forget the term 'markup' because your financial statement will ultimately show your gross margin $ and % and you should set up separate accounts for outsourced goods to track them. To determine gross margin, simply divide the cost by the inverse of the percentage desired. For example, to achieve 45% GM on a $100 cost, divide 100 by .55 which is $181.82.
Whole different ballgame if looking at production cost of goods sold - then you need to add overhead, shop rate etc. such as RossMosh suggested.
kcollinsdesign
Old member
Typically a 40% margin for buyouts. On certain projects I may go as low as 20%, but they usually include up-front payment arrangements, warranty agreements, and service contracts (for example, LED displays). I maintain a 40% margin on materials too, but I am careful to add value for inventory costs and other costs associated with purchasing, receiving, storage, and handling.