Markup Percentage for Remodelers

Minimum Bottom Line Profit Should Average 9.4%!
For Trades & Subcontractors, at Least 11%
After Income Taxes Are Paid!

In the construction industry, remodelers face a different set of criteria than your traditional new home builder. Because of these issues the markup percentage on costs is generally much higher than other forms of construction. If you are a remodeler, you need to understand the impact of these issues and how to properly markup your job to cover all your indirect and overhead costs. In addition, you must generate a profit for yourself.

This article will start out by covering some of the terms used and then explain the issues remodelers face. I’ll finish up by walking you through a basic example and establish a range of markup related to remodeling.

Terminology

Before I list a few terms and their definitions related to this subject, if you are not aware of how markup is calculated then please read What is the Difference Between Markup and Margin. This article explains in detail the respective definitions and the proper perspective. Simply stated

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