Material Markup
Definition
Material markup is the percentage added to material costs before charging the client, covering sourcing, purchasing, transporting, and managing materials. Typical range is 10-30%.
Common Questions
Real-World Example
CRM Services purchases $200 in drywall and joint compound and bills $240 with a 20% markup.
Why It Matters
Material markup is an essential but often misunderstood profit center.
Related Terms
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