Musings on Material Multipliers -- Dickeson

Hitting Pricing Bogeys
Maybe we'll want to use a different materials multiplier number for setting pricing bogeys. Or even a series of multiplier numbers depending on work variations could be used. What you want is just something that provides a little decision support—some cold comfort. Odds are 10-to-one it'll be better than what you're doing with a computer system for estimating job costs to mark up for a price quote. Again, check it out. Divide sales dollars by materials dollars in that set of samples you just did and see what materials multipliers you've actually been using.