What markup should I put on materials?

Most UK trades work between 10% and 30% depending on the trade, the risk carried and how much handling is involved. Set it from the margin you need after wastage and collection time, and apply it consistently rather than negotiating per job.

Should I let customers buy their own materials?

You can, but price the labour on the assumption something will be wrong, state in writing that you do not warrant customer-supplied goods, and charge standing time if you are held up.

How do I handle a supplier price rise mid-job?

Quote with a validity period, keep the supplier quotation, and include a clause that material price increases above a stated percentage are passed on with evidence. Tell the customer as soon as you know, not at invoice stage.

Materials & Equipment for UK Tradespeople | The Trades Business Builder

Materials are where cash disappears fastest. You pay the merchant on Tuesday and the customer pays you in three weeks — if the deposit was right and nobody lost a receipt.

This hub covers deposits for material-heavy jobs, supplier pricing and trade accounts, markup, returns, tracking spend by job, tools, hire versus purchase, vans, fuel, waste, and how to let a team buy things without losing control.

Start with the numbers

What this hub covers

Topic clusters

Written in the order the decisions actually arrive.

Funding the purchase
Whose money buys the materials, and when.
Pricing and recovering materials
Markup, wastage, delivery and returns.
Tools, plant and vans
The kit that quietly costs you a rate rise.
Team purchasing control
Limits, approvals and receipts.

Marcus on this hub

What matters most here

The three things that change the numbers fastest in this part of the business.

Know your true landed cost

The price on the trade counter is not what the material costs you. Delivery, wastage, cutting loss, returns you never make and the fuel for the collection all belong in the figure you mark up.

Add a realistic wastage percentage by material type — 5% on boards and tiles, more on anything cut to fit — and price from the landed cost, not the invoice line.

Decide who buys the materials, and say so in the quote

Customer-supplied materials shift the cost off your quote and the risk onto your labour. If the goods arrive late, short or wrong, your week is gone and you are not paid for it.

If you allow it, write the terms down: you are not responsible for the suitability, quantity or failure of goods you did not supply, and standing time is charged at your day rate.

Buy tools on payback, not on offers

A tool earns its place if it removes hire cost, saves hours you can sell, or wins work you currently turn down. Work out the payback in jobs, not in months of 0% finance.

Track what you actually hire over a year. Anything you hire more than six or seven times is usually cheaper to own, and anything you hired once in three years never needed buying.

Tools

Calculators for this area

Templates

Paperwork for this area

Not sure where to begin? Start here

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Straight answers

Common questions

What markup should I put on materials?: Most UK trades work between 10% and 30% depending on the trade, the risk carried and how much handling is involved. Set it from the margin you need after wastage and collection time, and apply it consistently rather than negotiating per job.
Should I let customers buy their own materials?: You can, but price the labour on the assumption something will be wrong, state in writing that you do not warrant customer-supplied goods, and charge standing time if you are held up.
How do I handle a supplier price rise mid-job?: Quote with a validity period, keep the supplier quotation, and include a clause that material price increases above a stated percentage are passed on with evidence. Tell the customer as soon as you know, not at invoice stage.

Materials & Equipment

Start with the numbers

Funding the purchase

Pricing and recovering materials

Tools, plant and vans

Team purchasing control

Know your true landed cost

Decide who buys the materials, and say so in the quote

Buy tools on payback, not on offers