ever been asked to reveal mark up on supply of materials before?

[jonnyc]

i am quoting to fix stone and supply adhesive/grout/sealer on a project in a church.
I will do the job if accepted with a stone supplier.
we are being asked to give a % mark up on materials supplied.
is this unusual?
i dont ever remember being asked this before and have done a few churches years ago.

 

[Perry]

they can always ask but you can refuse

 

[Colour Republic]

This has been asked as part of a larger contract right?

Yes on some large contracts we've been asked to tender for then yes it's asked as an agreed markup on future materials that may be needed.


in the same way extra works on day rate are agreed.

if this is a smaller contract where the price is pretty much set then no.

it is being asked to protect both you and the client.

 

[jonnyc]

Ok I understand the need to know mark up if extra materials supplied.
they also asked day rate for extra works and that fine too.dont really want to tell them my mark up on ditra and adhesive . They want a fixed price for job based on sub floor being prepped ok and that should be it I feel.
i don't do much commercial stuff .thanks for advice from you both

 

[Ajax123]

Not to do with them. If you mark up too much you'll be too expensive and won't win the work. If too little you have to live with it.

i would never reveal such confidential information to a client....

And how much have you got in the bank and what's your credit card number and PIN number by the way....

 

[jonnyc]

Not to do with them. If you mark up too much you'll be too expensive and won't win the work. If too little you have to live with it.

i would never reveal such confidential information to a client....

And how much have you got in the bank and what's your credit card number and PIN number by the way....

Well I always reveal the number of bags of adhesive I will supply and the total cost of each material i supply so client can workout the cost per bag.same with ditra but I don't see the necessiity to reveal my mark up.Or for that matters the make of adhesive i am supplying as long as it comes within the spec required.Isuppose I might think differently if I were to lose contract for not disclosing but surely it would not come down to that.

 

[John Benton]

I never reveal my true costs to the customer. If they go and buy the tiles themselves I just say to them I have spoken to supplier and asked them to take my discount off the total. For example if I get 30% discount on the tiles I will tell customer that I get 15% and I have the remainder as credit against my next purchase. So we both win.

 

[Colour Republic]

Ok I understand the need to know mark up if extra materials supplied.
they also asked day rate for extra works and that fine too.dont really want to tell them my mark up on ditra and adhesive . They want a fixed price for job based on sub floor being prepped ok and that should be it I feel.
i don't do much commercial stuff .thanks for advice from you both

[FONT=&quot]They are not interested in your actual mark up and you don't have to tell them, it's more that if you put a figure of say 10% then they know they will never pay anything more than retail price +10%

For example
say RRP is £50 then plus 10% is £60 (This is the maximum you could ever charge)
If you have a deal with a supplier that gives it to you for £20 that doesn't mean you can only charge £22, what you pay is not in question it’s the maximum they could be charged that is

Same on day rate if it's agreed you will supply a chippy at £200 a day then that is set for any extra works and they don't get surprises[/FONT]

 

[The D]

just tell them cost +10% or whatever that is all they want to know.

 

[White Room]

I go to one supplier who charges the same to trade and retail which makes it bit awkward at times....

 

[Andy Allen]

I go to one supplier who charges the same to trade and retail which makes it bit awkward at times....

i would change suppliers...

 

[Pebbs]

Yes John, I do have to reveal the material base costs on some projects, they are now asking for the breakdown materials and then the labour, plant and additional items. There is no where to hide, because they also have a copy of the material quote from the specified stone supplier.

Its a bit crap really.

Lynn

 

[Dougs Third Go]

all the customer needs to know from me, imo, is that I'm providing it cheaper than what they can get it, (this is domestic clients), on commercial jobs I let main contractor get materials as I'm not VAT registered.