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Subcontract pricing standards


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So I have read all about markup and pricing, margins and profits. But what about from one sign shop to another? A sign shop needs help installing because they are backed up, or maybe they just sub out all of they high work or electrical signs.

What is standard markup on materials? Labor rate per hour? Service charge? Should it be the same as you charge the end user? One ol' boy said figure the job and give them 20% off the top.

Give me your thoughts......EVERYBODY!!!!!

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So I have read all about markup and pricing, margins and profits. But what about from one sign shop to another? A sign shop needs help installing because they are backed up, or maybe they just sub out all of they high work or electrical signs.

What is standard markup on materials? Labor rate per hour? Service charge? Should it be the same as you charge the end user? One ol' boy said figure the job and give them 20% off the top.

Give me your thoughts......EVERYBODY!!!!!

we normally have a 30% markup on materials - 20% mark up on subcontract - our labor rate -135.00 per hr. 1 hr minimum on service with bucket plus travel time- 165.00 per hr for installations with bucket or crane - 2 hr minimum plus travel time - we have never charged anyone a service charge

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So I have read all about markup and pricing, margins and profits. But what about from one sign shop to another? A sign shop needs help installing because they are backed up, or maybe they just sub out all of they high work or electrical signs.

What is standard markup on materials? Labor rate per hour? Service charge? Should it be the same as you charge the end user? One ol' boy said figure the job and give them 20% off the top.

Give me your thoughts......EVERYBODY!!!!!

we normally have a 30% markup on materials - 20% mark up on subcontract - our labor rate -135.00 per hr. 1 hr minimum on service with bucket plus travel time- 165.00 per hr for installations with bucket or crane - 2 hr minimum plus travel time - we have never charged anyone a service charge

Thanks Michelle,

To clarify, Is a 30% markup = to material cost x 130%?

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So I have read all about markup and pricing, margins and profits. But what about from one sign shop to another? A sign shop needs help installing because they are backed up, or maybe they just sub out all of they high work or electrical signs.

What is standard markup on materials? Labor rate per hour? Service charge? Should it be the same as you charge the end user? One ol' boy said figure the job and give them 20% off the top.

Give me your thoughts......EVERYBODY!!!!!

we normally have a 30% markup on materials - 20% mark up on subcontract - our labor rate -135.00 per hr. 1 hr minimum on service with bucket plus travel time- 165.00 per hr for installations with bucket or crane - 2 hr minimum plus travel time - we have never charged anyone a service charge

Thanks Michelle,

To clarify, Is a 30% markup = to material cost x 130%?

material cost x 30%

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You are getting $135hr for 1 man and a 35' service truck????

sorry i should of clarified that this is our rate for 2 men - the only time we send one man out is for non-electrical work ( cleaning of signs, painting etc). Our rate for 1 man is 115.00 per hr. We have a great customer base (after 107 years in business )and we just raised our rates after 4 years due to wonderful New York State's workmens comp rate hike from 14.91 per hundred to 29.17 per hundred for our classification.

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  • Board Patron

Damn we only get $70 per hour 1 man and people still gripe. Good for you!

Installation & Maintenance Services

Brian Phillips | expresssignandneon@sbcglobal.net | P. 812-882-3278

Express Sign & Neon | 119 S. 15th Street - Vincennes - IN 47591

express%20neon%20sig.jpg

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Damn we only get $70 per hour 1 man and people still gripe. Good for you!

We couldn't even pull our trucks out of the driveway for that - New York State sucks! what is your workmen's comp rate there? what is the cost of gasoline there? we have a formula we use to figure out what each man's cost is and then mark it up 50% and then we also calculate our gas and maintenance of our trucks into our rates as well on a yearly basis. if we didn't have a good customer base (repetitive) we wouldn't survive.

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So I have read all about markup and pricing, margins and profits. But what about from one sign shop to another? A sign shop needs help installing because they are backed up, or maybe they just sub out all of they high work or electrical signs.

What is standard markup on materials? Labor rate per hour? Service charge? Should it be the same as you charge the end user? One ol' boy said figure the job and give them 20% off the top.

Give me your thoughts......EVERYBODY!!!!!

You should charge the same as you charge everyone else you are giving away your profits to a competitor. The only way I would not charge the going rate would be if we were to swap out services that would be a comparative advantage.

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  • Board Patron

Damn we only get $70 per hour 1 man and people still gripe. Good for you!

We couldn't even pull our trucks out of the driveway for that - New York State sucks! what is your workmen's comp rate there? what is the cost of gasoline there? we have a formula we use to figure out what each man's cost is and then mark it up 50% and then we also calculate our gas and maintenance of our trucks into our rates as well on a yearly basis. if we didn't have a good customer base (repetitive) we wouldn't survive.

Our work comp rate is 8.95

Installation & Maintenance Services

Brian Phillips | expresssignandneon@sbcglobal.net | P. 812-882-3278

Express Sign & Neon | 119 S. 15th Street - Vincennes - IN 47591

express%20neon%20sig.jpg

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  • !llumenati

New York State...Workers comp is almost $ 33. per hundred on installers. Everyone is charged from the receptionist to the salesman and up the line. Insurance cost have become a new partner.

I agree with charging the full rate to other sign companies. Either they are unable to do the work or they dont have the required licenses, insurances or knowledge. Someone needs to pay for all the expenses of doing business. We do alot of work for the "other" companies. I tell them the price and find out that they are selling the complete job for less then my services only. Alot of them have no ideas, no insurances, nothing.

The real sign companies, friends and associates get better pricing, and they get the correct pricing for the job. I know these companies will be there for me and expect to be paid for their valued services too.

Think of this before you start the day. New York City. The day starts with all the normal expenses of doing business, the employee issues and getting the jobs done. Now before the truck leaves the shop. New York City Police issues parking tickets, $ 115. Drive a few streets, or cross any tunnel, bridge or toll and get stopped. Check point time. NYPD, Traffic Enforcement, Bridge and Tunnels, Port Authority, State DOT. Everyone gets a piece of you. Guaranteed a ticket, Thousands of Dollars and time. Sometimes put out of service, spilled diesel on the gas tank. That was $ 1200. for the tow and court alone. Then get to the job site. Another parking ticket for $ 115. Do this for every truck on the road, everyday. Thats only the good days without a other issues. Annnnnd.....Thousands of people who get in your way while you are working.

I think we deserve every dollar we make. Get paid on time from everyone, customers and nationals. They dont care about your problems.

Yes. I'm still having fun and enjoy doing this for over 25 years. Its not a job, its an entertainment adventure.

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Incredible. Thank you to all that are sharing. I fabricated and installed for 20 years but now subcontract everything. Your sharing allows me to better keep abreast of what you are facing and why you ask for what you ask.

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New York State...Workers comp is almost $ 33. per hundred on installers. Everyone is charged from the receptionist to the salesman and up the line. Insurance cost have become a new partner.

I agree with charging the full rate to other sign companies. Either they are unable to do the work or they dont have the required licenses, insurances or knowledge. Someone needs to pay for all the expenses of doing business. We do alot of work for the "other" companies. I tell them the price and find out that they are selling the complete job for less then my services only. Alot of them have no ideas, no insurances, nothing.

The real sign companies, friends and associates get better pricing, and they get the correct pricing for the job. I know these companies will be there for me and expect to be paid for their valued services too.

Think of this before you start the day. New York City. The day starts with all the normal expenses of doing business, the employee issues and getting the jobs done. Now before the truck leaves the shop. New York City Police issues parking tickets, $ 115. Drive a few streets, or cross any tunnel, bridge or toll and get stopped. Check point time. NYPD, Traffic Enforcement, Bridge and Tunnels, Port Authority, State DOT. Everyone gets a piece of you. Guaranteed a ticket, Thousands of Dollars and time. Sometimes put out of service, spilled diesel on the gas tank. That was $ 1200. for the tow and court alone. Then get to the job site. Another parking ticket for $ 115. Do this for every truck on the road, everyday. Thats only the good days without a other issues. Annnnnd.....Thousands of people who get in your way while you are working.

I think we deserve every dollar we make. Get paid on time from everyone, customers and nationals. They dont care about your problems.

Yes. I'm still having fun and enjoy doing this for over 25 years. Its not a job, its an entertainment adventure.

I think if I were you, I would be forming two different companies so that you only pay the high comp on the installers.

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New York State...Workers comp is almost $ 33. per hundred on installers. Everyone is charged from the receptionist to the salesman and up the line. Insurance cost have become a new partner.

I agree with charging the full rate to other sign companies. Either they are unable to do the work or they dont have the required licenses, insurances or knowledge. Someone needs to pay for all the expenses of doing business. We do alot of work for the "other" companies. I tell them the price and find out that they are selling the complete job for less then my services only. Alot of them have no ideas, no insurances, nothing.

The real sign companies, friends and associates get better pricing, and they get the correct pricing for the job. I know these companies will be there for me and expect to be paid for their valued services too.

Think of this before you start the day. New York City. The day starts with all the normal expenses of doing business, the employee issues and getting the jobs done. Now before the truck leaves the shop. New York City Police issues parking tickets, $ 115. Drive a few streets, or cross any tunnel, bridge or toll and get stopped. Check point time. NYPD, Traffic Enforcement, Bridge and Tunnels, Port Authority, State DOT. Everyone gets a piece of you. Guaranteed a ticket, Thousands of Dollars and time. Sometimes put out of service, spilled diesel on the gas tank. That was $ 1200. for the tow and court alone. Then get to the job site. Another parking ticket for $ 115. Do this for every truck on the road, everyday. Thats only the good days without a other issues. Annnnnd.....Thousands of people who get in your way while you are working.

I think we deserve every dollar we make. Get paid on time from everyone, customers and nationals. They dont care about your problems.

Yes. I'm still having fun and enjoy doing this for over 25 years. Its not a job, its an entertainment adventure.

I think if I were you, I would be forming two different companies so that you only pay the high comp on the installers.

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I understand California is in the same situation. The situation is in dire need of reform. We all want workers comp for those times that someone is severly injured. I started out painting billboards. When a friend fell, everyone rejoiced that he was taken care of. Last year however, a friend fell ten feet off of a ladder hitting his head. The care that he has received has been as if there were no limits. His hospital bill is now close to half million dollars and he is still facing another operation to fix some hearing damages. I do not wish his care was any less than what it is however, it is obvious that to every care provider in the loop, cost seems to be no object. There does not appear to be any incentive to control costs. No request is denied. This is the system that we have in place. The wolf seems to be in charge of the chicken coop. We all look at the whole workers comp/health insurance industry in awe right up until someone we care about gets hurt. Is there really any answers? I do not think so short of socialized medicine. Even still, understanding why we have workers comp in the first place, free medical care is not going to alleviate the cost to employers. Difficult situation all around. I expect it will get more challenging before it gets any less.

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