How do you get over the “guilt” of product markups.
Of course when you’re offering a service that includes a product or material there’s going to be markups involved, but I always feel like I’m doing something wrong, almost like they’re going to go to the store and come back with “you charged me $17 per unit when the store only charged me $15 per” is there a way to get over this?
markups too, until I realized I’m not just charging for the product itself. I’m charging for the time sourcing it, ordering it, picking it up, handling issues, warranty responsibility, and the risk that comes with it. If something arrives damaged or wrong, that becomes my problem to solve, not the client’s. The markup helps cover overhead and keeps the business sustainable. It’s no different than any other industry, people just notice it more in construction because the numbers are bigger and everyone suddenly becomes a part-time accountant
Markup on materials isn’t about ripping people off. It covers the time sourcing, ordering, pickups, damaged items, warranty issues, fuel, supplier accounts, and the risk contractors take when something goes wrong. Clients aren’t just paying for the material itself, they’re paying for the contractor handling the entire process so they don’t have to. Every business marks things up. Contractors just get questioned about it more because people can physically see the receipt and suddenly turn into forensic accountants.
I agree with many of the points mentioned here.
After more than 30 years in the manufacturing industry working with both vendors and customers, I have learned there is a fine line between price and value. The real value often comes from experience, judgment, and protecting the customer’s long term interests.
Sometimes that means not recommending the cheapest option because you know it will not last. Other times it means not overselling the most expensive solution when it is unnecessary for the application. Customers may not always see those decisions immediately, but over time that is what builds trust.
That expertise, accountability, and guidance have value attached to them, and that is part of what customers are paying for. Marking up parts is industry standard and necessary for a business to operate sustainably, especially when you are also standing behind the work, managing risk, coordinating vendors, handling warranty concerns, and supporting the customer after the sale.
At the end of the day, customers remember honesty, consistency, and whether you truly looked after their best interests.
