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%.
In practice
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.
Common questions
What's the difference between markup and margin?+
Markup is a percentage added to cost. Margin is a percentage of the selling price.
What's a fair markup?+
15-25% is standard for most residential repair and remodeling work.
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