I finally looked up the real cost of that luxury vinyl plank everyone uses

Found a report from a trade group saying the average install price in my city is $4.50 a square foot, but the material markup for the homeowner is often double that. Makes me question if we're pushing the most expensive option too hard. What's a fair profit margin on materials in your area?

2 comments

2 Comments

oliviat173d ago

My cousin in Phoenix paid over $7 a square foot for her LVP install last year. She showed me the breakdown and the store charged her almost triple what they paid for the planks themselves. That markup feels crazy to me for just moving boxes from a warehouse. I read a blog by a contractor who said a 30 to 40 percent markup on materials is standard for their overhead. When it gets to 100 percent or more, it's just pure profit on the product, not the labor. It makes you wonder if they're pushing it because it's an easy score, not because it's the right floor.

the_ryan3d ago

That "just moving boxes from a warehouse" part is a bit off. The store has rent, utilities, sales staff, delivery trucks, and insurance. If they sell it to you, they also handle returns on defective planks and provide the warranty. Their cost is way more than just the wholesale price of the box. A triple markup does sound high, but the standard 30-40 percent the blog mentioned is for a contractor's small shop, not a big store with a showroom. Their overhead is totally different.