What might happen if job markup for profit is too high?

When job markup for profit is excessively high, it can lead to bids not being awarded. This is primarily because potential clients often seek the best balance between cost and quality. If a contractor's markup significantly inflates the bid price, it may exceed the client’s budget or be far higher than competing bids.

Clients are typically looking for favorable pricing, and a bid that is unreasonably expensive may not be viewed as competitive or justified based on the perceived value of the services being offered. Consequently, in a competitive bidding environment, high markup can deter clients from awarding jobs to that contractor, leading to missed opportunities for contracts.

While lower bids can be a strategic move for contractors to win projects, excessively high bids can alienate potential clients and diminish market competitiveness, resulting in bids that fail to secure work.