How do your mark-ups compare to our Salary Survey averages?
For jobs below $10,000, 67 per cent of contractors apply at least a 1.3 mark up, with some as high as 1.8. Compare your own mark ups with our handy chart.
By Steve Payne
In our 7th annual Salary Survey, we once again asked you to report your mark-ups on various sizes of projects.
The survey, which had a near-record 377 contractor respondents, gave us this data.
Without insulting anyone’s intelligence, remember that this is chart is MARK UP not margin. If you mark up a $10,000 project (your cost) by 1.5, you get a gross profit of $5,000 obviously. So your gross margin for a 1.5 mark up is $5,000 divided by $15,000 = 33 per cent. Not 50 per cent.
Similarly, a 1.1, or 10 per cent, mark up yields a gross margin of 9 per cent.
A 1.2 mark up gives you a 17 per cent gross margin.
A 1.3 mark up gives you a 23 per cent gross margin.
A 1.4 mark up gives you a 29 per cent gross margin.
Here is the chart of Mark Ups, as reported to us…