Concrete Contractor Markup: What Percentage Should You Use?

Most profitable concrete contractors use a 50-100% markup on materials and 30-50% markup on labor. This translates to a 20-35% net profit margin. Here's how to calculate the right markup for your business.

Markup vs. Profit Margin

Markup and margin are NOT the same. If you markup materials 50%, your margin is 33%. Markup formula: Sell Price = Cost × (1 + Markup%). Margin formula: Margin = (Sell Price - Cost) / Sell Price. Example: $100 cost × 1.50 markup = $150 sell price = 33% margin.

Industry Standard Markups

Materials: 50-100% markup (33-50% margin). Labor: 30-50% markup (23-33% margin). Equipment rental: 20-30% markup. Subcontractors: 10-20% markup. Overall job: aim for 25-35% gross margin after all direct costs.

How to Calculate Your Markup

1) Add up direct costs (materials + labor + equipment). 2) Add overhead allocation (insurance, truck, admin — typically 15-25%). 3) Add desired profit (10-20% of total). 4) Divide selling price by direct costs to get your markup multiplier. Most contractors land at 1.6-2.0x multiplier on direct costs.

When to Charge More

Complex decorative work: higher markup (skilled labor premium). Rush jobs: 25-50% premium. Difficult access: 15-30% premium. Small jobs (under $2,000): higher markup to cover fixed mobilization costs. Repeat customers: standard markup (volume makes up for it).