How to Price Materials and Markup for Trade Jobs — A Practical Guide

Materials are often the biggest line item on a trade quote, and how you handle them can make the difference between a profitable job and one that barely breaks even. Charge too little and you're subsidising the customer. Charge too much and you look like you're taking the mickey.

Getting materials pricing right is a skill, and it starts with understanding markup, margin, and what's considered fair in your trade. Here's a practical guide to help you get it sorted.

Markup vs Margin — What's the Difference?

These two terms get mixed up constantly, even by experienced tradespeople. They're related but they're not the same thing, and confusing them can cost you money.

Markup is the percentage you add on top of your cost price. If materials cost you £100 and you add a 20% markup, you charge the customer £120. Your profit on the materials is £20.

Margin is the percentage of the selling price that is profit. Using the same example — you sell for £120 and your profit is £20. That's a margin of 16.7% (£20 divided by £120).

The formulas:

• Markup: (Selling Price - Cost Price) / Cost Price x 100
• Margin: (Selling Price - Cost Price) / Selling Price x 100

Why does this matter? Because a 20% markup gives you a 16.7% margin. A 15% markup gives you a 13% margin. If you're aiming for a specific profit margin on a job, you need to set your markup higher than that margin percentage. Getting this wrong on a materials-heavy job — like a bathroom renovation or a kitchen fit — can eat into your profit significantly.

Typical Markup Percentages by Trade

There's no universal rule for how much to mark up materials. It varies by trade, by the type of job, and by the value of the materials. Here are some general guidelines based on what's common in the UK trades:

Plumbing and Heating

Most plumbers mark up materials by 10-20%. For standard items like copper pipe, fittings, and valves, 15% is typical. For boilers and cylinders (which are high-value items), the markup tends to be lower — around 10% — because the absolute profit in pounds is still decent even at a lower percentage. Some plumbers buy boilers through merchant accounts at significant trade discounts and pass part of the saving to the customer while keeping a healthy margin.

Electrical

Electricians typically mark up at 15-25%. Cable, consumer units, sockets, and switches are relatively low-cost items individually, so a higher markup percentage is needed to make it worthwhile. On bigger items like EV chargers or distribution boards, the markup might drop to 10-15%.

General Building

Builders working on extensions, renovations, and structural work usually apply 10-20% on materials. Bricks, blocks, cement, timber, and insulation are often bought in bulk at trade prices, and a 15% markup is common. On high-value items like steels, windows, and doors, 10% is more typical.

Joinery and Carpentry

Joiners and carpenters tend to mark up at 15-20%. Timber, sheet materials, fixings, and finishing products all carry a markup. Bespoke or specialist materials might carry a higher markup because of the effort involved in sourcing them.

Painting and Decorating

Decorators often mark up paint and materials at 20-30%. The materials cost on a decorating job is usually a small proportion of the total price, so a higher percentage markup has less impact on the overall quote while ensuring the tradesperson's time sourcing and transporting materials is covered.

When to Charge Cost Price (or Close to It)

There are situations where charging materials at or near cost price makes sense:

• Customer-supplied materials — If the customer wants to buy their own tiles, paint, or fittings, you simply don't charge for materials at all. Just make sure your labour price reflects the fact that you're not making a margin on materials.
• Very high-value items — On a £10,000 kitchen or a £5,000 boiler, some tradespeople charge materials at cost and make their profit on labour. This can make the quote more competitive without hurting your overall earnings.
• Repeat or trade clients — If you're doing regular work for a landlord or a builder, offering materials at cost (or a very small markup) can help you secure ongoing work.
• When transparency is key — Some customers ask to see receipts for materials. In these cases, it's often simpler to charge at cost and ensure your labour rate properly reflects your overheads.

How to Handle Material Price Changes

If you've been in the trades for any length of time, you'll know that material prices can change rapidly. Timber prices surged during 2021-2022, and costs for plasterboard, cement, and insulation have all fluctuated significantly in recent years. Here's how to protect yourself:

Quote Validity Periods

Always include a validity period on your quotes — typically 14 to 30 days. This protects you if material prices rise between quoting and starting the job. Your terms and conditions should state that prices are subject to change if the quote expires.

Price Variation Clauses

For larger jobs that will take weeks or months, include a clause that allows you to adjust material costs if prices change by more than a set percentage (5-10% is reasonable). This is standard practice in construction contracts and most reasonable customers will accept it.

Buy Early When You Can

If you've won a job and you know material prices are rising, consider ordering key materials early — even before the job starts. This locks in the price you quoted and protects your margin. Just make sure you have the storage space and that the customer has committed to the work.

Build in a Buffer

When pricing materials for a quote, consider adding a small buffer (2-5%) on top of your usual markup to account for price fluctuations and waste. This is especially important on jobs with long lead times or materials that are known to be volatile.

Being Transparent With Clients

How you present materials on your quote matters. There are broadly two approaches:

Inclusive Pricing

You provide a single price for the job that includes labour and materials. The customer doesn't see a separate materials line. This is simpler and avoids awkward conversations about markup. It works well for fixed-price jobs where the scope is clear.

Itemised Pricing

You break down the quote into labour and materials separately. Some customers prefer this because it feels more transparent. If you go this route, you have a choice — show the marked-up price as the "materials" cost (most common), or show cost price plus a handling/procurement fee.

Either approach is legitimate. The important thing is to be consistent and confident. Marking up materials is standard practice in every trade — it covers your time sourcing materials, your fuel for collecting them, your merchant account costs, and the risk of price changes and waste. You're not doing anything wrong by adding a reasonable markup.

Common Mistakes to Avoid

• Forgetting to mark up at all — Some tradespeople, especially when starting out, pass materials through at cost thinking they'll make enough on labour. This leaves money on the table and doesn't cover the real cost of sourcing and handling materials.
• Using the same markup on everything — A 20% markup on a £5 bag of screws makes sense. A 20% markup on a £3,000 boiler (adding £600) might price you out. Adjust your markup based on the value of the item.
• Not accounting for waste — Tiles break, timber gets cut wrong, paint runs out faster than expected. Build waste allowance into your materials estimate — typically 5-10% for most materials, up to 15% for tiles and similar items.
• Quoting materials without checking current prices — Don't rely on prices from your last job. Check your merchant's current list before you quote, especially for timber, plasterboard, and copper — items that fluctuate frequently.
• Not tracking material costs per job — Keep a record of what you estimated versus what you actually spent on materials. This helps you refine your quoting accuracy over time and identify where you're consistently over or under-estimating.

A Practical Example

Here's how a bathroom fitter might price materials on a typical bathroom renovation:

Materials at cost:

• Bathroom suite (bath, basin, toilet) — £650
• Tiles (floor and walls) — £320
• Tile adhesive, grout, and sundries — £85
• Plumbing fittings and pipe — £120
• Waste allowance (10%) — £118

Total cost: £1,293

With a 15% markup across the board: £1,293 x 1.15 = £1,487

That markup of £194 covers the time spent choosing and ordering materials, two trips to the merchant, fuel costs, and the handling of deliveries. It's entirely reasonable, and most customers wouldn't blink at it — especially when it's presented as part of a clear, detailed quote.

The Bottom Line

Marking up materials is a normal and necessary part of running a trade business. It's not about squeezing customers — it's about covering the real costs of sourcing, handling, and managing materials, while maintaining a healthy profit margin on your work.

Use appropriate percentages for your trade, adjust for high-value items, protect yourself against price changes, and be confident in your pricing. If a customer questions your materials costs, explain what's included — sourcing, collection, delivery coordination, and waste. Most reasonable customers understand that your time and expertise extend beyond just the hours spent on site.