Home>Discussions>ELECTRICAL & LIGHTING>Is 2-3 times retail for materials routine?
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A. Spruce
Re: Is 2-3 times retail for materials routine?
The Semi-Retired Electric wrote:

By the way I usually don't charge a full 20% mark-up for major pieces of equipment.

Correct, but I suspect this is the case for most conscientious contractors. All small items get a generous mark-up. Large ticket items are generally cost plus a modest "finders fee" depending on if the contractor is supplying/installing the item or if a sub-contractor is supplying and doing the install.

Re: Is 2-3 times retail for materials routine?

All of the above...

It takes money to get the right part to you on the job, so the local retail price is only a part of the picture. Not just with electrical but with every trade, most contractors know that job satisfaction is a sum of all the parts used, the skill of those installing them, and the durability of the finished job. All that is reflected in the total job's price. They also know that with any mass-produced item there will be a few rejects which through no fault of their own, they will have to replace for free.

On top of all that, few contractors will use customer-supplied parts and stand behind the work because the quality of those parts was out of their hands. If you thing the price for the entire job was out of line based on what other local contractors would have charged then you might have some valid questions.

If that total price is in line with similar work, just let the details of the billing go and be happy. Based on local tax laws, some contractors may 'shift' certain prices around leaving your total cost the same to take advantage of those laws. Give them a break since only the total cost affects you ;)



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