What material markup actually means
Markup is the percentage you add to what you paid. £200 of materials with 20% markup is charged at £240. That extra £40 is not free money — it covers the parts of buying materials that nobody invoices for.
- Time spent sourcing, comparing and ordering.
- Collection trips, delivery charges and fuel.
- Money tied up in materials before the customer pays you.
- Waste, breakages and offcuts.
- Storage and moving stock around.
- Returns, wrong deliveries and shortages.
- Warranty and admin if a product fails and has to be replaced.
Markup and margin are not the same number
This is where money quietly disappears. Markup is measured against your cost; margin is measured against the price you charge. A 20% markup is only a 16.7% margin.
| Cost | Markup | Customer price | Margin |
|---|---|---|---|
| £100 | 10% | £110 | 9.1% |
| £100 | 20% | £120 | 16.7% |
| £100 | 30% | £130 | 23.1% |
| £100 | 50% | £150 | 33.3% |
How to choose your figure
There is no universally correct markup percentage, and anyone quoting one is guessing. The right figure depends on your trade, the type of job, how much sourcing it involves, your local market and how you've priced labour.
A useful way in: work out roughly how much unpaid time and cost materials generate on a typical job, then set a markup that recovers it. If you spend half a day a week ordering and collecting, that's real money.
- Low-effort, high-value items (a boiler delivered to site) may justify a smaller percentage.
- Lots of small items from several suppliers usually justifies more.
- If your day rate already includes sourcing time, don't charge for it twice.
- Be consistent — customers notice when the same material is priced differently each visit.
Being straight with customers
You don't have to itemise your markup, but you should be able to explain it. Most customers accept that a supply-and-fit price includes sourcing, delivery and a guarantee — that's what they're buying instead of doing it themselves.
If a customer wants to supply their own materials, price the labour accordingly and make clear in writing who carries the risk if the wrong item turns up or a part fails.
Put it into practice
Do this in minutes with the Job Pricing & Profit Calculator
Set your default material markup once and every saved job applies it, so quotes stay consistent and you can see what materials contributed to profit.
Sources & further reading
Common questions
- Is there a standard material markup for tradespeople?
- No. Markups vary widely by trade, job type and market, and any single 'correct' figure would ignore how you've priced labour. Base yours on the unpaid time and risk that buying materials creates for your business.
- How do I convert a markup into a margin?
- Margin = markup ÷ (100 + markup). A 25% markup gives a 20% margin. The material markup calculator shows both so you don't mix them up.
- Should I tell customers my markup?
- You're not obliged to itemise it on a supply-and-fit quote, but be ready to explain what it covers — sourcing, collection, waste and the guarantee that comes with you supplying the parts.
- What if a customer supplies their own materials?
- Price the labour on its own, and set out in writing who is responsible for delays, wrong items and faulty parts. You lose the markup, so you also lose the buffer that covered those problems.
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Material Markup Calculator
Turn trade prices into customer prices — and work backwards from what you charged.
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Add labour, materials, travel and margin to get the price you should quote.
Profit Margin Calculator
Check what a finished job actually made you, in pounds and as a margin.
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