Material Markup Calculator

As a rough guideline (no fixed industry standard), most UK tradespeople mark up materials by around 15-30%, with the wider range across trades running roughly 10-40%. This covers the time spent sourcing, collecting, transporting, and storing materials, plus the cash exposure and warranty risk of buying on the customer’s behalf. Some apply a flat handling fee instead. Higher markups (25-40%) are common for small, low-value specialist items; lower markups (10-15%) are typical on high-value items like boilers, cylinders or EV chargers. Set your own figure to suit your overheads.

It depends on your pricing model. Some tradespeople list materials at cost and mark up labour only. Others provide a single fixed price. Being transparent about material costs builds trust, but a fixed price is simpler for the customer.

If VAT-registered, you buy materials ex-VAT (reclaiming input VAT) and charge the customer your marked-up price plus 20% VAT. If not VAT-registered, you pay VAT on purchases and cannot add VAT, so your trade prices are effectively higher.

Your markup covers sourcing knowledge, trade-quality products, correct quantity calculation, delivery/collection time, and the guarantee that materials are fit for purpose. Communicate this value - most customers accept a reasonable markup for convenience.

Yes, delivery is a real cost. Either include it in your overall quote or itemise it separately. If you collect materials yourself, factor in your travel time and vehicle costs - this is part of the service you provide.