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yoyoma_gw

Markup Fee

yoyoma
15 years ago

I'm doing a kitchen remodel and my contract states that I need to go to a particular countertop store, "as contracted through" the kitchen/cabinet design company. However, there was no separate contract, the kitchen designer I was working with told me they just add 15% to manage the project. Anyway, I went to the store and agreed to a $10,000 job. However, when they added in the 15%, the total came to $11,764.71. When I asked them why it wasn't $11,500, they said that they add in a 15% margin. Indeed, $10,000 / .85 is that amount.

What I would like to know is whether this is standard practice? I always assumed I would be paying a 15% markup, not a "margin".

Thanks.

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