Contractor Margin and Log Cabin Vinyl Siding Prices

The homeowner who is handed an estimate for new construction or remodeling projects involving log cabin vinyl siding may sometimes suffer sticker shock. The cost of installation can seem high and you may fear being taken advantage of by an unscrupulous or greedy contractor.

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Is that big markup a red flag for fraud? Probably not.

Typical Markup on Log Cabin Vinyl Siding Prices

Vinyl siding contractors typically mark up vinyl siding as part of their overall costs. The contractor's time, fuel, and vehicle use involved in ordering, purchasing, picking up, and delivering the siding to your home are figured into the markup. Markups on the contractor's price for log cabin vinyl siding include all of these things and may run as high as 30 percent over what the contractor paid for the siding. This markup is then passed along to the homeowner.

Log Cabin Vinyl Siding Prices at Contractor Discounts

All retailers have their own variations on contractor discounts but the discounts all fall somewhere in between the store's wholesale cost for the siding and the retail over-the-counter price. The discount is usually in the vicinity of seven percent but this can vary depending on supply and demand, location, and inventory flow.

The Purpose of Markups

Markups on contractor provided vinyl siding are included in the overall cost of the project. The contractor has to cover his own costs and these include:

  • Materials
  • Labor
  • Permits
  • Benefit package
  • Sales tax

Log cabin vinyl siding prices as paid by the consumer during the installation process are the result of the contractor's actual cost for materials and the markup. For specialty styles like log cabin, the markup can be tends to be at the higher end of 30%, simply because specialty styles may be harder to source and install. Ultimately, the contractor needs to make a living and the markup is one of the things he needs to stay in business and create a reasonable profit margin. If you feel uncomfortable with a quote, always get at least two other contractor estimates.

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