Browse Forums General Discussion Re: builders margin 2Oct 28, 2022 3:44 am Architectural Homes & Duplexes - specialising in custom designing homes to your budget Get a Free Onsite Consultation Today or send a PM for information, questions or advice. Re: builders margin 4Oct 28, 2022 8:21 am Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: builders margin 7Oct 28, 2022 8:49 am Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: builders margin 9Oct 28, 2022 12:05 pm Architectural Homes & Duplexes - specialising in custom designing homes to your budget Get a Free Onsite Consultation Today or send a PM for information, questions or advice. Re: builders margin 14Oct 28, 2022 5:27 pm Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: builders margin 15Oct 28, 2022 5:31 pm Accessible Carpentry & Cabinets accessiblecarpentry@gmail.com accessiblecarpentry.com.au https://www.facebook.com/pages/Accessible-Carpentry-Cabinets/583314911709039 Re: builders margin 17Nov 09, 2022 4:48 pm Like ⋅ Add a comment ⋅ Pin to Ideaboard ⋅ There is some confusion between MARGIN and MARKUP. The comments so far refer to markup, not margin, and margin is real and should not be confused with markup. If something costs $100 and I want it to sell it with a 20% margin, then the margin works out at $25 and the final cost to the client is $125. (that is the margin is 20% OF the final selling price) But if the cost is $100 and I want to sell with a 20% markup, then the profit is $20 and the final cost to the client is $120. Notice that the $25 dollars MARGIN represents 20% of the $125 selling price. Whereas the $20 markup represents 16.7% of the $120 selling price. Many builders actually make this mistake and charge x% markup, when they are contractually entitled to charge x% margin. Margin is used in all manufacturing and building scenarios, it always has the same meaning. Markup is used mainly in shops and it always has the same meaning. It will be easier to understand if we talk about 50% markup, which means something costing $100 will be sold for $100 + 50% of $100 = $150 If we use 50% margin, this means that something costing $100 needs to sell for $200 for the margin to be 50% of the selling price. QED "ECOECO" At 'EcoEco', we design windows, we design the best windows, we do it for you, so that when you’re happy we are happy. Tel. 1800 326 326 Re: builders margin 18Nov 09, 2022 5:18 pm ECOECO Like ⋅ Add a comment ⋅ Pin to Ideaboard ⋅ There is some confusion between MARGIN and MARKUP. The comments so far refer to markup, not margin, and margin is real and should not be confused with markup. If something costs $100 and I want it to sell it with a 20% margin, then the margin works out at $25 and the final cost to the client is $125. (that is the margin is 20% OF the final selling price) But if the cost is $100 and I want to sell with a 20% markup, then the profit is $20 and the final cost to the client is $120. Notice that the $25 dollars MARGIN represents 20% of the $125 selling price. Whereas the $20 markup represents 16.7% of the $120 selling price. Many builders actually make this mistake and charge x% markup, when they are contractually entitled to charge x% margin. Margin is used in all manufacturing and building scenarios, it always has the same meaning. Markup is used mainly in shops and it always has the same meaning. It will be easier to understand if we talk about 50% markup, which means something costing $100 will be sold for $100 + 50% of $100 = $150 If we use 50% margin, this means that something costing $100 needs to sell for $200 for the margin to be 50% of the selling price. QED Thanks for your very interesting and thought provoking post. To be honest I had no idea margin was defined this way. I won't be changing the way we charge as I personally think it is more transparent to use the markup definition. But I wonder how many builders understand this and are applying it? Architectural Homes & Duplexes - specialising in custom designing homes to your budget Get a Free Onsite Consultation Today or send a PM for information, questions or advice. Re: builders margin 19Nov 10, 2022 7:47 am You’re welcome. Isn’t the builders’ margin limited by law? I could be wrong. If it is then it doesn’t make sense to limit it further. "ECOECO" At 'EcoEco', we design windows, we design the best windows, we do it for you, so that when you’re happy we are happy. Tel. 1800 326 326 Re: builders margin 20Nov 11, 2022 8:37 am ECOECO You’re welcome. Isn’t the builders’ margin limited by law? I could be wrong. If it is then it doesn’t make sense to limit it further. We use the NSW fair trading contract which limits it to 20% Architectural Homes & Duplexes - specialising in custom designing homes to your budget Get a Free Onsite Consultation Today or send a PM for information, questions or advice. Look at your bill from the electricity company. It should detail the charges. You will need to do some estimating and some calculations. Then charge the… 8 4301 Site works are just about to start on our build with Blueprint in Midvale. viewtopic.php?f=31&t=106894 2 4015 Hi all, We are looking to build a new two storey house in western Sydney. Can anyone recommend a smallish builder to go with? 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