https://www.foundationacs.comIn this episode of the Contractor's Profit Hack Show, Jeremy from Foundation Accounting and Consulting delves into the topic of markup. He explains the four steps in the bidding and estimating process: bidding a process, calculating costs, adding markup, and comparing to market. Through simple analogies, Jeremy clarifies the often-confused concepts of markup and margin. He provides practical tips on how percentages translate into actual profit margins and how to use benchmarks for ensuring profitable bids. Lastly, Jeremy emphasizes the importance of not pricing below cost and offers a flexible approach to applying markup, either as a percentage or a fixed dollar amount.00:00 Introduction and Overview00:53 Understanding the Bidding Process02:22 The Concept of Markup vs. Margin03:01 Visualizing Markup with Blocks05:21 Calculating Profit Margins08:07 Quick Cheats for Markup and Margin12:09 Final Tips on Markup13:23 Conclusion and Next Steps
