Why Every Service Contractor Needs to Understand Material Markup (Not Just Job Markup)
Some home service contractors love to mark up the entire job, and that’s fine until you realize you’re not really making money on your materials.
For me, personally I love to know ow everything is divided in my margins... Because It covers all the costs that get overlooked:
Warranty replacements that eat into profits
Time to grab, stock, or return parts
Fuel and vehicle wear from sourcing
Credit card fees and supply chain risk
When you don’t separate material markup, you lose visibility.
If you’re inefficient in your labor or your jobs start dragging, you won’t know where the leak is.
Understanding markup on material is one of the most vital fundamentals for any service provider. It’s what separates a day to day contractor from a profitable one.
That’s why we built this quick resource for you:
It breaks down:
✅ How to calculate markup by cost range
✅ What markup really covers (overhead, risk, and time)
✅ Why materials should always be treated as a profit center, not just a pass-through expense
Download the worksheet, walk through it with your team, and start identifying where your leaks are.
Let me know what you think.
