If you quote a job where you have to rent a piece of equipment do you uncharged back to the customer or charge them the same rate you pay? Same thing with materials? Just getting good and started and about to quote my first job that I'll need something I don't have and it made me curious. I was just going to charge what I have to pay but then thought I might be leaving money on the table. Thanks in advance!!
Question for guys running businesses
- Thread starter K3901
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Jay4200
Veteran Member
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- Nov 23, 2005
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- Hudson/Weare, NH
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- L4200GST w/ LA680 & BX2200D w/ LA211
Everybody I know marks up everything, at least in the construction trade. 20% is minimum.
motownbrowne
Elite Member
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- river falls, wi
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- Kubota mx4700 HST, New Holland TC-29D
It makes sense to mark it up a little anyways. You have to figure out what you need to rent, make the appropriate arrangements for rental and figure out pickup and return of the equipment. At the very least you need to bill for your time to do this stuff.
RDrancher
Veteran Member
On rented equipment you can usually charge whatever the going hourly/daily rate is for owned equipment is in your area. On most equipment that will take care of your rental costs, fuel and leave you a decent profit. For some specialty equipment you need to adjust it upwards to keep the profit in it. Also add in a move-on (mobilization) charge since your going to pick it up and take it back. If you're having it delivered, charge whatever the rental company charges in place of the mob.
For materials, charge a 20-25% mark up.
For materials, charge a 20-25% mark up.
RDrancher
Veteran Member
Here, rental on a 3 ton costs about $350 a day if I pick it up. No half day rental available. If I can do the install and roll it in the same day, I'll charge $550 for the roller. If it's a larger job and compacting will be done the following day, I'll charge a bit more since I'm losing a day somewhere else.
otlski
Gold Member
The mark up covers your time comparing prices, paying the bill, transportation costs, your accountant's fees, defective material, waste, etc. 25% is pretty normal.
RDrancher
Veteran Member
Let me add that I never charge a partial day's rate for my tractor or CTL. Full days only. The roller is added in above that rate.